What is CTV?
Connected TV (CTV) is a television that connects to the internet and can stream from digital platforms beyond traditional broadcast, cable, or satellite channels.
Otherwise known as your average ‘smart TVs’ with built-in internet connectivity – also, otherwise known as devices like Roku, Apple TV, Amazon Fire Stick, or gaming consoles that connect a regular TV to the internet.
When CTV disrupted the TV watching industry, streaming services like Netflix, Hulu, YouTube, and other online platforms also became an instrumental medium for advertisers, combining the broad reach of traditional TV with the targeting capabilities of digital advertising.
How CTV and Streaming Have Changed Content
The word ‘streaming’ is adjacent to CTV, referring to how consumers consume content through CTV (or other digital platforms) rather than through traditional print or media channels. Instead of relying on a set broadcast schedule, viewers choose what they want to watch and when they want to watch, giving access to a huge library of movies, TV shows, live events, and even original content.
The integration of CTV with streaming TV has revolutionized how people consume content, offering flexibility, choice, and convenience. As recently as June 2024, streaming accounted for 40.3% of total TV usage, the highest share ever reported.
Advertisers need to leverage CTV to reach audiences more effectively by placing targeted ads into streamed content.
What is CTV Advertising?
CTV (Connected TV) advertising focuses on delivering ads through streaming services and apps on internet-connected devices (smart TVs, gaming consoles, and streaming devices).
Unlike traditional TV ads that are broadcast to a wide audience with little targeting, CTV ads are highly targeted and personalized, allowing advertisers to reach specific demographics based on user data. CTV advertising takes advantage of the digital nature of streaming platforms, letting advertisers serve ads based on viewer behavior, preferences, location, and more. This level of targeting makes CTV ads more efficient and effective, as they are delivered to audiences who are more likely to be interested in the product or service being advertised.
The Impact of CTV Metrics
Coupled-up with precise targeting, CTV advertising also offers clear, measurable outcomes, allowing brands to track ad performance in real-time, with metrics like impressions, click-through rates, and conversions suddenly becoming highly trackable.
This data-driven approach accelerates the impact of advertising campaigns, budgets, and consumer connections by empowering brands to make ads MADE for their audience.
The Benefits of CTV Advertising
Maximizing your time, budgets, communication, and conversions is an artform and it takes strategy and consideration to get it right.
Going into 2024 (and not so long from now – 2025), getting it right is going to need to include some CTV and streaming considerations.
Here are five reasons why:
- Targeted Advertising: CTV advertising allows brands to deliver highly targeted ads to specific demographics based on user data like viewing behavior, location, and preferences. This puts the right ads in front of the right audience to get the right conversions consistently.
- Access to a Large Audience: With 83% of U.S. households using at least one paid subscription service in 2024, CTV advertising provides access to a vast and engaged audience. This means brands can reach a significant portion of the population through platforms that consumers already use regularly.
- Ad-Supported Services and Cost-Effective Advertising: Around 50% of consumers who watch online videos are consuming that content on free or paid ad-supported services. This provides an opportunity for brands to advertise cost-effectively, reaching consumers who prefer free content in exchange for viewing ads.
- Measurable Results and Analytics: CTV advertising offers detailed analytics and measurable outcomes, enabling brands to track performance metrics. This data-driven approach allows for the optimization of ad campaigns for better results.
- Enhanced Viewer Engagement: CTV ads are not skippable and are showcased in a less cluttered consumer-facing setup compared to traditional online ads, leading to higher viewer engagement. With viewers actively choosing to watch content on CTV devices, the likelihood of ad recall and engagement is significantly increased.
CTV advertising offers a unique opportunity for brands to engage with audiences in a more personalized and targeted way. The combination of large-scale reach, precise targeting, and measurable outcomes makes CTV an essential part of any 2020-something marketing strategy.
By leveraging CTV, brands can not only reach a broader audience but also ensure that their messaging is effective and resonates with the right consumers at the right time.
