A Connected TV (CTV) is any device – usually a television set, but not always – that connects to the internet to stream/play videos and other content. It’s ‘connected’ in the sense that it hooks to the internet directly. Which is why your new Smart TV will always ask for access to WiFi.
Think Netflix, Hulu, ESPN, ABC, Paramount+, Peacock, etc. Essentially, chances are, you watch content on Connected TV every single day.
Connected TV advertising – whether that’s on ad-supported or paid networks – gives brands a way to reach highly targeted audiences across multiple devices with far more engaging content than other mediums might allow.
When we speak to clients on their options for CTV advertising, we sometimes see that some myths and misconceptions still remain.
So here’s our take on what advertisers need to know about CTV advertising beyond “it’s expensive”.
1. It’s Not Just for TV: While “Connected TV” might conjure images of LED and Plasma TVs hanging on walls, it encompasses a much broader range of devices. Streaming sticks like Roku and Fire TV, gaming consoles such as the Playstation, and even smartphones and tablets all fall under the ‘CTV’ umbrella. This expanded reach allows advertisers to target audiences across a multitude of screens (sometimes called ‘second-screen’ advertising).
2. Data-Driven Targeting All the Way: CTV advertising leverages the power of data to deliver highly targeted campaigns. Viewership data, combined with information from connected devices, enables advertisers to reach specific demographics, interests, highly-specific locations and even purchase behaviors. This precision helps maximize campaign effectiveness, ad relevance, reduces ad fatigue and improves ROAS.
3. Measurement is More Sophisticated: CTV advertising offers advanced measurement capabilities, providing granular insights into campaign performance. Metrics like viewability, completion rates, and even cross-device attribution allow advertisers to track the true impact of their campaigns and optimize accordingly. It’s also possible to make near real-time changes to campaigns based on performance – something that was unthinkable with traditional TV ads.
4. It’s a Premium Environment: CTV advertising often delivers a premium viewing experience. Viewers are actively engaged with content, making them more receptive to ads. This creates a less intrusive and more impactful environment compared to traditional TV, where viewers don’t usually watch their preferred content on demand.
5. It Needs Expertise: CTV advertising needs experts who are able to analyze and make sense of the reams of measurement data to be able to track outcomes, and effectively target audiences. The CTV ecosystem is still fragmented, making campaign planning and execution more challenging than other platforms. And yes, it can get expensive too.
CTV will continue to be an exciting and high-engagement space for advertisers, but it’s also not a panacea. CTV requires brands to ensure they are adequately prepared to truly reap the benefits of this dynamic platform through programmatic knowledge, analytics and quick optimization.
