The future of TV Advertising is here
The television media industry is gigantic. Not exactly breaking news. But for the past decade, it seemed as if Broadcast TV’s Goliath would soon be taken down by Digital’s David. Instead, the broadcast television industry got smart, literally, and leveraged Connected TV to enter the digital world. Connected TV is primarily bought programmatically giving marketers digital-like control of their campaigns, especially compared to traditional linear broadcast TV. The future of television advertising has arrived with Programmatic Connected TV. We’re here to make sure you’re not stuck in the past.
What Is Connected TV?
Let’s start with the basics. Connected TV, or CTV, refers to the smart device you use to stream your content. Examples of CTV include:
- Smart TVs
- Amazon Firestick
- Apple TV
These devices stream content Over-The-Top (OTT), or over the internet, or through platforms like:
- Amazon Prime
Connected TV is different than broadcast and cable TV because it provides data and insights on viewers that can connect to additional data points from third party sources. Audiences are no longer generalized from the viewing habits of a small sample of television viewers. Media teams (and the brands they represent) can now analyze the viewer’s habits more granularly, making it possible to create highly targeted media campaigns with the precision of digital advertising.
What About Programmatic Connected TV?
Programmatic Connected TV refers to television ad inventory that is purchased via programmatic advertising – a media buying strategy that uses automation software to purchase ad inventory digitally. Inventory can be purchased in a few different ways:
- Supply Side Platform
Supply Side Platforms (SSP) are open markets that let you predetermine the content and audience categories. This is usually the most cost-effective way to purchase Programmatic CTV.
- Private Marketplace
In a private marketplace (PMP), publishers invite a select number of advertisers to bid on their inventory.
- TV Content Owners
Advertisers can also buy inventory from specific CTV apps and networks such as A+E, Discovery and Fox.
- Premium Distributors
Inventory can also be purchased from the distributors, like DIRECTV and Sling TV, that aggregate TV content from multiple networks.
What Are The Benefits of Programmatic Connected TV?
There are quite a few reasons a marketer would choose to advertise on Connected TV. Here are some of the most impactful use cases.
Viewers Are More Engaged
CTV viewers are consuming over two hours more content than they did in 2018. Even more impressive, these same viewers are watching ads in their entirety (all those years of screaming “don’t touch that dial” finally paid off). In 2020, 95% of CTV’s video ad impressions were watched until the end in North America Compare that to the 80% average completion rate on any device and you can see the true value of advertising on CTV.
CTV Is More Cost-Effective Than Linear TV
Connected TV helps you get the most out of your media budget. The cost of entry for CTV is usually much less expensive than linear TV. In fact, linear TV has been known to have notoriously high minimums for their premium networks. With CTV, you can buy premium inventory on an open exchange at a more affordable cost. Furthermore, programmatic Connected TV gives you access to a wide selection of inventory and enhanced targeting, which means you won’t waste media dollars casting a wide net.
Connected TV offers more clarity into its attribution. Advertisers can see the end-to-end customer journey from viewing a TV commercial to making a purchase. Metrics like incremental reach, conversions, sales, and website visits can all be tracked across CTV and other devices. As a result, advertisers have a clearer picture and a better understanding of their customer’s path to purchase.
The Audience Comes First
CTV, especially programmatic Connected TV, allows you to truly create an audience-based campaign. Audiences aren’t determined by vague antiquated demographics with CTV. Instead, they’re defined by exhibited behaviors such as social sharing signals, viewership habits and search habits. Marketers use this information to set guardrails and determine content categories that’ll reach an audience that’s actually interested in your brand. This is a huge advantage over linear TV that traditionally relies on wide-ranging demographics. Programmatic Connected TV also lets you serve ads where and when people are most likely to convert. Furthermore, you can optimize your campaigns’ digital targeting parameters, such as time of day, location, and day of the week.
CTV Keeps Growing
You’ll be joining a growing trend that exploded during the pandemic. About 78% of U.S consumers used a subscription video on demand service in 2020, an increase of more than 25% in four years Even if someone doesn’t currently stream on their Connected TV, it’s likely they own one. A recent report showed that 82% of U.S consumers own a CTV device This number will gradually increase as almost every new television on the market is a smart tv.
You’ll Reach More Of The Right People
Your client went through all that trouble of creating a bright and shiny video ad. It’s your job to make sure the right people see it. CTV allows you to extend your reach beyond your current media plan. Already advertising on linear TV? Great! CTV is the perfect complement as it will help you reach consumers that don’t have cable or satellite TV. The number of cord-cutters is growing by the day. By advertising on CTV, your TV spot won’t get lost when a consumer decides to cut the cord.
It’s Time To Get Connected
Interested in advertising on Connected TV? You’ve come to the right place. Our team can develop a strategic CTV media plan that is efficient, cost-effective, and hyper targeted. As CTV continues to become the norm, it’s important not to get left behind. Chat with us today and we’ll show you how to keep moving forward.