Why CTV Is Changing The Face Of Ad Streaming
And 4 Ways It Can Empower Your Advertising
What is CTV?
Connected TV (or CTV) is the term used to describe a television set capable of connecting via an internet network, and used to stream video content (most often, via an app).
Traditional televisions, of course, do not connect to the internet because programming is delivered through a cable connection, an antenna, or a satellite. A Connected TV device goes online either because of its embedded technology or due to an external gadget.
CTV is not linked only to smart TVs, it includes other types of devices that are able to connect to the internet, like Playstation, XBOX, and Amazon fire. CTV technology brings new opportunities for viewers who now have the option to choose from a more diverse entertainment selection and watch only content they want to—not scheduled programs.
CTV has created a phenomenon named Cord-cutting which means switching from cable TV to Smart TV. This trend has been increasing in popularity over the years since more and more people are buying smart devices. The popularity of services provided through the internet has fueled the process as these services are either free or significantly cheaper than cable. CTV has changed the game for advertisers as numerous households modified their content consumption habits.
The pandemic also increased the cord-cutting process, and this change is permanent as viewers enjoy a better service with more variety, using the internet and CTV technology. In 2023 it's expected that the number of CTV viewers will surpass linear TV viewers according to eMarketer
Even if audiences have similar consumption patterns and behaviors that have matured across generations in relation to ads, they are not used to receiving tailored advertising messages and offers based on their interests and needs.
Having a targeted audience with built-in buying habits, combined with CTV technology, creates a great opportunity for advertisers as they can understand their viewers, measure the success of their campaigns, and reach population segments that do not have access to, or use traditional TV.
Here are some of the characteristics of CTV that make it a great opportunity for advertisers:
Not being limited to showing an ad to only one channel during a specific hour.
CTV allows advertisers to send targeted ads across multiple apps and channels to audiences based on their preferences/behavior, whenever the viewer is using the device. On Linear TV, ads are presented even if the audience is not online during the time the ad is being displayed on the channel.
Linear TV has limited options to measure results when targeting your audience. The types of shows, and statistics based on past engagement, give marketers a general overview of the viewer’s activity during specific hours segmented by channels and cities.
With CTV however, marketers have the possibility to better understand user behavior patterns in relation to ads and create a viewer profile based on their internet consumption habits.
Viewers also benefit from the fact that they are presented with ads that contain specific offers relevant to their interests, providing a better experience in viewing ads.
2. CTV does not rely on cookies compared to Desktop and Mobile app Ad campaigns. CTV uses first-party data points such as device IDs and advertising IDs to make sure privacy laws are upheld. Viewers have the option of choosing the kind of ads they view which helps identify households to create statistics and user-related behavior.
3. Cost-effective, programmatic advertising creates the framework for bidding on multiple inventories creating not only competition but also a more diverse supply pool. At the same time, it offers advertisers a larger variety of payment models. For example, they can pay only if an ad has been completely viewed (CPVC – Cost Per Completed View).
The possibility of advertising in a specific city makes TV advertising a more affordable choice for smaller businesses, as they don’t have to buy a specific time slot on a channel for an entire country.
4. It brings variety to ad types. They can be:
Each innovation brings the potential for higher performance and better service for a specific need and CTV has done this for the TV industry. It brings relevance to ads and prioritizes the interests and necessities of each viewer. It brings more autonomy for the viewers over what they watch, the moment, and even the speed at which they are watching their desired content.
CTV also provides businesses a higher value per dollar spent on ads than on linear TV, which can result in more sales as the targeting is more specific.
CTV is a growing market enjoying technological advantages which contribute to the expansion and progress of digital marketing in a sustainable manner. At the same time, it empowers advertisers to obtain higher success for their campaigns to know exactly where their budget is going and to measure their desired KPIs, while at the same time viewers are targeted with ads that are actually relevant to them.
