Is ConnectedTV (CTV) Advertising Right for Your Business?

Increasingly, many people are rejecting traditional television packages and opting for more flexible digital streaming platforms instead. The world of television seems to be rapidly changing, with only about 78 million American households remaining connected to cable.

Although television advertising has remained mostly the same, CTV (Connected TV) technology is looking to transform this category by offering new, effective, and more interactive advertising to replace the more dated marketing approaches. With the entertainment industry constantly evolving, you may be wondering if you should capitalize on CTV as part of your marketing strategy. Here, we’ll dive into the world of CTV and whether it’s right for your business. 

What is Connected TV (CTV)?

To understand if CTV is an approach you want to pursue, we need to discuss what exactly CTV is. Connected TV refers to any TV that connects to the internet and supports video content streaming, such as a smart TV. Additionally, it can consist of sticks, or other forms of accessories that are plugged into a TV to enable apps and internet connections like Apple TV, Roku, the Amazon Fire Stick, and even gaming consoles. 

CTV marketing delivers personalized advertisements through these TVs, as they have a built-in capability to be connected to the internet. If you’ve watched programs on these streaming platforms, you’d know that there are no escaping ads.

You may also see the acronym OTT (Over-the-top) when researching CTV. OTT means that the content source is the internet instead of traditional cable, antenna, or satellite connections. Devices such as desktop computers, mobile devices, game consoles, and smart TVs all provide OTT services. In a nutshell, OTT delivers content delivery and CTV is an internet-connected device. In this sense, you can use a CTV device (such as Apple TV) to stream OTT content (such as Netflix). 

How Do I Advertise With CTV?

Now that we’ve talked about what CTV is, you may be curious about how you can work it into your advertising strategy. There are many options when it comes to CTV advertisements, such as in-stream video ads, interactive pre-roll ads, and home-screen placement ads. 

In-stream video ads are seamlessly integrated into the content being streamed and can be offered before, after, or during a specific program. These ads are typically 15-30 seconds long and cannot be skipped. 

Interactive pre-roll ads appear before the program is watched, and as the title states, allow the viewer to interact with the ad, via a QR code, or link, which can lead them to a brand landing page.

Finally, home-screen placement ads remain on the screen for the duration of the content being streamed. This can be accomplished by using a static image, animated image, or even a short video.

CTV advertising provides full access based not on scheduled programming or active content viewing, but rather on user patterns and preferences, making it different than traditional advertising. 

Benefits of CTV Advertising

CTV marketing can provide several advantages if launched effectively. Let’s talk about the benefits of taking the plunge into CTV advertising.

Precisely Target Your Audience

CTV allows brands to target specific niches by playing your ad for viewers with certain interests, from a chosen demographic, or are within a targeted geographic location. You may even be able to target based on the device your potential audience is using, lookalike audiences, or even what time of day they are watching.

Increased Advertising Reach

According to the Leichtman Research Group, nearly 82% of U.S. households own at least one CTV device. The large viewer base has increased rapidly over the past few years due to the COVID-19 pandemic when people were spending more time at home in front of their television sets. Additionally, millennials and Gen-Z groups are officially cutting the cable cord and opting for subscription-based streaming platforms instead.

More Measurable Results

CTV advertising allows you to track more helpful data compared to traditional television advertising. You’ll be able to access statistics such as click-through rate, impressions, platform, and video completion rate.

Cookieless Environment

With third-party cookies and app trackers being eliminated in the not-so-distant future, you may be searching for a cookieless advertising option. CTV does not use cookies but instead uses IP addresses, device IDs, and other first-party data to target households. 

Cost-Effective and Flexible

Compared to traditional television advertising, CTV advertising allows for more flexibility, with various options when it comes to pricing plans. CTV marketers can also utilize pricing strategies such as CPM (cost-per-metric) and CPCV (cost per completed view) regarding their needs. 

From small businesses to larger corporations, everyone may be able to benefit from CTV marketing. With CTV shaping up to be one of the latest advancements in marketing, you may be wondering if it’s time to incorporate it into your existing strategy. Curious about learning more? Contact Integrate today for a consultation.