Traditional TVs are becoming obsolete with the rise in internet-powered televisions or Smart TV. Streaming time is up multiple folds as Covid and lockdown restrict many people to stay at home.
Marketers are making a shift to connected TV advertising to leverage massive audiences and benefit from the targeting precision. Read on to learn what connected TV advertising is and how it works.
What is Connected TV Advertising
In simple terms, it refers to a television that supports an internet connection to load and stream digital content. It usually includes Smart TV with a built-in internet connection and Standard TV connected to the internet through any smart device.
CTV, synonymous with OTT (Over-The-Top), refers to TV-like content distributed over the internet to be accessed by internal-capable devices and apps.
Connected TV advertising allows marketers to show ads or promotional material on Roku, SlingTV, Direct TV OnDemand, and other premium streaming platforms.
How Does Connected TV Advertising Work?
Unlike traditional TV advertising, ad buys are not based on designated channels, at designated times, and for a particular program. Connected TV ads are displayed one at a time based on a particular viewer.
Now, advertisers do not have to guess or identify the show that the targeted audience is watching. It allows for more precise targeting and inventory selection to reach large markets and get better winning rates.
Types of Connected TV Advertising
The following three types of CTV ads are displayed
- In-Stream Video Ads – These unskippable ads are played before or during the show. Since these ads can be 15 to 30 seconds long, advertisers can reuse existing traditional ads for CTV advertising.
- Pre-Roll Ads – These ads take users to a landing page if the viewer clicks on them. The viewer can go to buy clothes or book a ticket in the middle of streaming digital content.
- Home Screen Placement Ads – These stagnant ads are displayed on the home screen with a call-to-action like ‘learn more’, ‘buy now’, and ‘shop now’.
Benefits of Connected TV Advertising
- Cost-Effective – CTV advertising is budget-friendly due to precise targeting. The ads will be shown only to the targeted audience interested in your services or products.
- Viewability – CTV ad is only considered viewed if the viewer has actually played it. You can track how long the ad was allowed to play by the user. Improved viewability by optimizing the ad for brand awareness.
- Multiple Ad Formats – Experiment with different ad formats to determine which format works the best. Utilize Interactive video, call-to-action, animated, and static ad types to drive engagement and boost performance.
- Precise Targeting – When a viewer logs in via Facebook or Google accounts, marketers gather essential information such as interests, behavior, country, age, etc to run targeted campaigns.
CTV advertising is more successful than traditional TV advertising thanks to precise targeting and more conversions. With a shift in TV viewing, marketers are changing their advertising strategies to create brand resonance and sell services and products. It is the right time to grow your business by capitalizing on connected TV and video advertising.