The Future of Advertising: Navigating the Connected TV Landscape

As we embrace a digital-first age, the way we consume content has experienced a seismic shift. Gone are the days when television schedules dictated our evenings. Today, it’s all about streaming, on-demand shows, and flexibility.

For brands and advertisers, Connected TV represents a fresh opportunity to reach audiences in more personalized and effective ways. But what exactly is Connected TV, how do consumers use it, and what are the opportunities for advertising?

What is Connected TV (CTV)?

Connected TV refers to any television set that can be connected to the internet to access content beyond what is available via regular broadcast, cable, or satellite channels. This includes TVs that have built-in internet capabilities (Smart TVs) and external devices such as Roku, Apple TV, Amazon Fire TV Stick, and gaming consoles like PlayStation or Xbox.

Through CTV, viewers can access streaming platforms such as Netflix, Hulu, Amazon Prime, YouTube, and a myriad of other services. The key difference between CTV and traditional TV is the ability to stream digital content on demand.

How Do Consumers Use Connected TV?

Consumers are rapidly “cutting the cord” and moving away from traditional cable subscriptions in favor of on-demand and a la carte viewing options. Research from the Leichtman Research Group shows that nearly nine out of ten U.S. households have one, if not more, internet-connected televisions.

One of the major advantages of CTV is the ability to watch content whenever you want. No need to set a reminder for that 8 p.m. show or plan your evening around a TV schedule. With entire seasons of shows available at once, many viewers enjoy watching multiple episodes or even an entire season in one sitting.

However, the average watch time for a U.S. adult is just around 2 hours a day.


Opportunities for Advertising on Connected TV

TV offers a unique blend of digital advertising’s precision and television’s broad reach. Here’s what makes it so enticing:

  • Targeted Advertising: With CTV, advertisers can deliver tailored campaigns based on a user’s browsing habits, demographic details, and even specific interests. This hyper-targeting ensures ads are more relevant and, thus, more effective.
  • Measurable Outcomes: Forget the ambiguity of traditional TV ad metrics. CTV advertising provides granular insights, from view-through rates to engagement metrics, allowing advertisers to adjust campaigns in real-time.
  • Engagement: Given the on-demand nature of CTV, viewers are typically more engaged, leading to better ad recall and stronger brand impressions.
  • Flexibility: Quick edits, testing different ad versions, or altering the course of a campaign are all possible with CTV advertising, unlike the static nature of traditional TV ads.

How to Win in the CTV Advertising Arena

  1. Diversify Across Platforms: Don’t put all your eggs in one basket. Explore different streaming platforms to understand where your audience spends most of their time.
  2. Content is King: Just like any other medium, content quality can’t be overlooked. Ensure your ads are engaging, relevant, and resonate with the viewer’s current mindset.
  3. Leverage Data, But Respect Privacy: While data allows for precise targeting, it’s essential to maintain transparency and adhere to privacy regulations to foster trust.
  4. Stay Updated: The CTV landscape is evolving. Whether it’s technological advancements or changing viewer habits, staying informed will ensure your strategies remain effective.

How Effective is CTV Advertising?

Multiple studies have shown that CTV advertising is highly effective. For instance:

  • Around 44 percent of consumers said they would try a product or service after seeing it advertised on CTV. ( DoubleVerify)
  • 23 percent of CTV viewers made a purchase after seeing an ad (Digiday) as opposed to linear TV’s 12 percent. (Magnite)
  • 38 percent of advertisers say the achievement of brand awareness and performance marketing goals were the main performance- and pricing-related benefits of CTV and OTT advertising. (Statista)
  • Standard pre-roll CTV ads see a 94 percent viewer completion rate vs. 74 percent on PC and 69 percent on mobile devices. (Statista)
  • 81 percent of TV advertisers cite “targeting and efficiency” as the primary reason for shifting ad spend to CTV/OTT and away from linear/cable TV advertising. (Statista)

As the lines between digital and traditional TV continue to blur, advertisers have an unprecedented opportunity to combine the best of both worlds, creating memorable, effective campaigns that drive results.

Connected TV Advertising Success Kit

Want to learn more about how to get started with CTV advertising? Download our Connected TV Advertising Success Kit for the latest tips and strategies.

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