The way we consume television has undergone a dramatic shift in recent years.
With the rise of streaming services like Netflix and Hulu, paired with the ubiquity of smart TVs and streaming devices, more and more consumers are turning to connected TV (CTV) as their primary source of entertainment. The numbers related to connected TV growth simply speak for themselves!
This shift has created a massive opportunity for marketers looking to reach their target audience in a way that’s highly targeted, engaging, and measurable.
In this post, we’ll explore the key benefits of CTV advertising for marketers and why it’s worth considering as part of your marketing strategy.
But first, let’s explain what CTV is.
What is Connected TV for Marketers?
Connected TV is a term used to describe any television set that is connected to the internet. It includes smart TVs; gaming consoles; streaming devices like Chromecast, Roku, Apple TV, and Amazon Fire Stick; and devices like Blu-ray players that allow for internet connectivity.
With CTV, users can stream movies, TV shows, and video content on-demand, and with ad-supported options, marketers can monetize their content through targeted advertising.
To leverage CTV for your marketing campaigns, you first need to define your target audience and what you want to achieve with your ads. Once you have identified your audience, you can select the right platform for your ad delivery according to your advertising goals and budgets.
Connected TV opens up promising opportunities for marketers, and the industry’s growth is not expected to slow down anytime soon. According to Statista, the number of connected TV users worldwide is projected to reach 62.6 million by 2025.
The future of connected TV advertising is evolving fast, with new technologies being developed to enhance viewership and ad delivery.
From interactive ads that allow viewers to take action, dynamic content personalization that serves specific ad versions depending on the viewer’s location, to programmatic advertising that automates ad buying and placement, the possibilities for CTV advertising are endless.
Below, we’ll tell you a bit more about the many benefits of CTV for marketers.
1. Targeting Capabilities
One of the key benefits of CTV ads is their targeting capabilities.
Unlike traditional TV ads, which are seen by a broad audience, CTV ads can be targeted to specific demographics and interests. This level of targeting allows you to reach the right audience at the right time, making your ad more effective and improving your ROI.
For example, if you’re promoting a new makeup line, you can target your ad to women aged 18-35 who have previously watched beauty tutorials on YouTube.
2. High Engagement
CTV ads are highly engaging, as they’re typically viewed on a large screen in the living room or home theater. This means that viewers are more likely to pay attention to your ad and less likely to tune it out or skip it.
Plus, CTV ads can be interactive, allowing viewers to engage with your brand in a way that’s not possible with traditional TV ads.
3. Measurable Results
Another benefit of CTV advertising is the ability to track and measure your results in real time.
Unlike traditional TV ads, which are notoriously difficult to track, CTV ads provide detailed analytics on views, clicks, and conversions. This allows you to optimize your ad in real-time and make data-driven decisions to improve its effectiveness.
4. Non-Intrusive Advertising
Another major benefit of connected TV advertising is that ads are often displayed in a non-intrusive manner since viewers are already engaged with the content they are watching.
CTV ad placements are programmed to fit seamlessly within the viewing experience, leading to higher engagement rates and better conversion rates than traditional TV advertising.
Finally, CTV ads are often more cost-effective than traditional TV ads. This is because you’re only paying for ads that are viewed, rather than for a time slot during which your ad may or may not be seen by your target audience.
In addition, CTV ads are often less expensive to produce than traditional TV ads, as they don’t require the same level of production value.
As consumers continue to shift towards connected TV as their primary source of entertainment, it’s clear that connected TV ads are going to become an increasingly important part of the marketing mix.
With its targeting capabilities, high engagement, measurable results, and cost-effectiveness, there’s no denying the benefits of CTV advertising for marketers.
So if you’re looking for a way to reach your target audience more effectively and efficiently, it’s time to consider adding CTV advertising to your marketing strategy today.