What exactly is CTV advertising? CTV advertising is a relatively new advertising channel that has yet to be extensively explored. The CTV sector is expanding and is expected to be worth $12 billion by 2022, yet most marketers are unsure how to take advantage of this advertising platform. This post will explain what CTV advertising is and how to get started with your own campaigns.
What is OTT Advertising?
What exactly is CTV advertising? Connected TV advertising, also known as OTT advertising, is a sort of television advertising that reaches consumers over the Internet. It entails running an advertising on an “over-the-top” media provider like Hulu.
Why Use OTT Advertising?
Big Reach
The benefit of employing an OTT service is that you can reach a big number of people. There are around 266 million smart TVs and 22 million VR headsets in the United States, which means that advertising space on major traditional TV networks such as NBC and Fox is extremely competitive. Advertisers will be able to reach more consumers in less time by using an OTT Platform.
Target Specific Audience
Another advantage of using an OTT service is that marketers may target a very particular audience. For example, if you advertise on Hulu, your ad will appear for those who watch comparable TV series or films to the one you’re advertising on. You may even target advertising based on variables like age, gender, and occupation.
Detailed Data Analysis
Finally, OTT providers give you extensive information about particular viewers. You can ensure that your advertisement is reaching the appropriate individuals at the right time and alter future campaigns accordingly.
Cost Efficiency And Savings
Because OTT advertising has not yet been completely explored, it is far less expensive than traditional means of TV advertising such as cable or satellite. In 2022, the average cost of a 30-second ad at the Super Bowl was $6.5 million.
Creativity And Innovation
OTT advertising is expanding year after year, but it has yet to achieve its full potential. Creative brains are continuously devising new methods to benefit from this platform. The “Hire Me” campaign produced by David Eastman in collaboration with Hulu is an excellent example of an inventive campaign. Ads that played after a show were utilized in the campaign.
OTT Advertising’s Major Challenges
According to ComScore, just 11% of TV-connected homes in the United States were utilizing a linked OTT service. That means businesses must be inventive in order to get their advertising in front of the proper individuals, which often necessitates highly detailed targeting. It is also difficult to assess the effectiveness of an ad on an OTT platform, particularly when it is aired after the show.
What Exactly Is CTV Advertising?
What exactly is CTV advertising? Connected TV advertising (CTV) is short-form, skippable advertising that is displayed on any CTV that is internet-connected.
Because of their similar names, CTV and OTT are sometimes mistaken, however the two are unrelated. OTT refers to TV material that can be streamed over the internet, whereas CTV refers to any connected TV with a digital display that is also linked to the internet.
Smart TVs, gaming consoles such as PlayStation and Xbox, and set-top boxes such as Apple TV, Roku, and Sky box are examples of CTV inventories.
CTV advertising is sometimes regarded as the holy grail of video advertising because it provides a highly targeted display mechanism that sends impressions to viewers who are actively looking to buy items or services.
This ensures that your advertisements are viewed by the correct person at the right time.
CTV advertising is certainly a potential for marketers to increase their market share, but there are a few things you should know before jumping into this new medium.
This post will look at what CTV advertising entails and will highlight some often asked topics in the industry.
What Doesn’t Qualify As CTV Advertising?
You already know what CTV advertising is, but do you know what it isn’t? This is not television advertisement. CTV advertising bypasses traditional broadcast waves and reaches viewers directly over the internet.
It’s also not OTT (Over-the-Top) advertising, which can be seen on any over-the-top video provider like Hulu.
Traditional TV networks that supply their programming via cable or satellite may now offer a direct-to-consumer experience through apps on traditional TV sets.
What Types Of Ads Are Available On CTV?
The skippable pre-roll commercial, which appears before the video begins streaming, is the most prevalent sort of ad you’ll encounter on What is CTV advertising. Other formats, such as in-stream and overlay advertising, are available on various platforms.
CTV Advertising Has What Type Of Reach?
What is the size of CTV advertising? CTV has a large audience, particularly in the United States. According to eMarketer, there are over 100 million CTVs in the United States alone, and the number is expanding every day.
What is The Process Of Linked TV Advertising?
What is cable television advertising? CTV advertising is targeted to users based on their demographics and viewing habits. This is accomplished through an auction procedure in which the highest bidder wins.
How Does CTV Advertising Get Purchased?
What is CTV advertising is marketed by media companies that operate as the clearing house for all media buys, just like conventional TV advertising. CTV Analytics’ ad inventory is purchased in an online auction manner, similar to that of traditional broadcast inventory.
Is Commercial Television Advertising
To a certain extent, yes. Skippable advertisements come standard with user interaction, and many platforms now allow advertisers to add extra functionality (such as buttons) to their ads.
What Must Happen For CTV To Become Really Interactive?
A second SDK screen is required for CTV to be really interactive or bidirectional. This implies that a second device, such as an app or tablet, can enhance the TV viewing experience.
To make CTV completely interactive, the second screen must be synchronized in order for data to flow between them. This entails airing interactive advertisements on television that are linked to mobile devices.
Is CTV Worth Your Time And Investment?
Because the OTT/CTV advertising business is rapidly expanding, it may be worthwhile to invest your time and money if you know what to expect.
First and foremost, it’s critical to recognize that just a small fraction of the TV advertising budget will be shifted to OTT in the near future (if at all). Globally, digital media budgets are still rising; however, it’s crucial to remember that OTT/CTV advertising isn’t the main sector of digital development. Mobile, social media, and especially programmatic advertising are all experiencing rapid growth.
According to forecasts from Digital TV Research Ltd, over 400 million unique people are already consuming content on linked TVs every month. This demographic has promise, but adequate planning and strategy will be critical for effective marketing and income.
Brands and advertisers may reach audiences through OTT platforms in a variety of ways, but like with any new media format, it’s important to go beyond the medium’s possibilities. Connected TVs are just another way to watch TV at home; they don’t deliver distinctive brand experiences or allow for novel brand interactions.
As previously stated, the major platform providers are already in charge of additional advertising alternatives such as mobile, social media, and programmatic (this can be seen in their ad serving technologies). It’s vital to remember that the OTT / CTV business is still in its infancy; revenues are likely to expand rapidly but not significantly.
How Can CTV Earn More Time With the Target Customer?
The significance of content is the most crucial element to consider. Connected TV users are more likely to consume premium material than other media, but they will pick what they want to see and when they want to see it.
This suggests that those who watch OTT / CTV are “leaning ahead” audiences. A video ad provided on an OTT network can be regarded a relevant piece of information and hence far more successful than web banners.
If OTT / CTV advertising is to succeed in its push for extended time with the target consumer, it must become contextual and relevant, much like TV advertising.
“They will come if you construct it.” When connecting with an audience via OTT / CTV advertising, this is the wrong strategy to pursue. Consumers have control over when and what they view on linked TV.
Why Is On-demand TV More Suitable For The User Experience With CTV Advertising Than Live TV?
What exactly is CTV advertising? CTV allows advertisers to reach out to people who are already interested in a product or service. This is in contrast to other platforms, where viewers may only represent a subset of the intended audience.
What is CTV advertising bidding? CTV advertising bidding leverages conventional industry metrics like viewability, brand recognition, and demographics to help establish the price of impressions.
CTV also enables more innovative implementations, such as dynamically serving commercials at the start of a show or video content. This can boost user engagement and experience.
What Are Some Typical Misunderstandings?
The most common misconception about What is CTV advertising is that it is simply another method to watch television. While this is true, keep in mind that CTV has a far more focused approach because the inventory is exclusive.
CTV advertising also provides for more ad integration into content and a variety of standardized ways of measurement, such as Nielsen Digital Ad Ratings, allowing commercials to be dynamically placed by date, time of day, device, or environment.
Who Are The Main Figures In CTV Advertising?
Many of the main online video sites, like YouTube and Hulu, contain CTV inventory, but there are numerous specialized platforms that provide a better level of targeting and optimization for CTV commercials. Adap.tv, BrightRoll, and Videology are just a few examples.
Platforms For CTV Advertising
The following is a list of the major CTV advertising platforms:
- AT&T TV is a multichannel streaming over-the-top (OTT) television service. It makes use of rental Android TV-based set-top boxes and AcornTV, a subscription television streaming service accessible on Amazon Fire TVs, Apple TVs, and Roku devices, among others.
- Amazon Prime Video is also available to members of the company’s “Prime” program. Which offers free two-day shipping when purchasing specific things from their shop – this means you don’t need any other memberships, such as Netflix, to enjoy viewing movies online!
- The Apple TV+ platform is a video-on-demand streaming television service that includes award-winning shows and films.
- BritBox provides an online digital video subscription service focused on British television shows, movies from our public broadcasting networks (BBC, ITV). Original programming produced in the UK or elsewhere that is specially designated for release here by rights holders before it appears elsewhere globally.
OTT/CTV Marketing Strategies
What exactly is CTV advertising strategy? CTV advertising may be used in a variety of ways to help marketers reach their target audience. The following are the most prevalent strategies:
Retarget your audience by going Omni-Channel
CTV re-marketing may be quite effective. Many advertising occur in the stream of video due to a better user experience on OTT providers. This implies that if someone watches a particular amount of an ad, it will usually enable another ad to play until they either stop viewing or the ad replay ends.
There are several methods for attracting new visitors to your properties. One method is to provide offers during the initial ad spot or even afterwards, increasing user engagement and encouraging them to return later.
Personalization opportunities
OTT provides a variety of various targeting options. You must target based on a variety of characteristics such as geography, demographic information, device ID, and even re-marketing consumers depending on their IP address. Personalization may be used to assist enhance reach by showing advertising to the appropriate people at the right time to improve conversion.
Have a robust Dataset of users
Having a robust user dataset allows you to utilize that information to better target your adverts. This entails utilizing data like as purchase history, demographics, surfing behaviors, and even social media preferences to provide the most appropriate experience for the audience.
Make use of programmatic buying
Programmatic purchasing is a method for marketers to purchase and optimize CTV advertising inventory using automated technologies. There are several DSPs (Demand Side Platforms) available to assist you in getting started and increasing the success rate of your campaigns.
Optimizing your CTV ads
Here are some methods for advertisers to improve their internet video advertising.
The most successful method is to leverage the data you have acquired on your consumers to determine their preferences in order to purchase more focused advertising.
Finally, whether you utilize CTV or another type of OTT service to broadcast movies, programs, sports, or other types of content, you must always keep in mind that the user experience is the most crucial factor. People will leave your website or mobile app if they can’t figure out how to utilize it, no matter how amazing your advertisements are!
Metrics to consider when launching a CTV advertising campaign
What are the CTV advertising metrics to be used? When launching a connected TV campaign, it is critical to adhere to the following metrics:
- Time spent watched by viewers and frequency.
- Completion rate of video advertisements.
- The number of views.
- Recall of advertisements.
- Purchase intent and brand favorability.
OTT advertising campaign targeting The key data points utilized for tailored marketing are:
- Audience demographic information.
- Television viewing patterns.
- Purchase habits.
Considerations before launching a CTV advertising campaign
Adopt an audience-first approach
Data drives CTV advertising platforms. Having the correct set of audience information will therefore assist to drive more relevant advertising with a larger effect. You may also use a multiscreen strategy, which involves airing the same creative on TV and VOD while leveraging cross-device targeting.
Remember that different CTV models necessitate distinct ad formats and ad-break kinds. Subscription VOD services, for example, only allow pre-roll and mid-roll advertising, but AVOD platforms offer skippable and non-skippable 30/60-second ad styles.
If your target audience is using mobile devices and linked TVs at the same time, it makes sense to advertise on all displays at the same time.
Create a story campaign.
Your narrative efforts have the potential to produce a great CTV/OTT campaign. Whether you have 15 seconds or one minute to communicate your tale, you must maintain a consistent narrative.
Ensure that branding and messaging are consistent across all displays.
FAQ about Connected TV
What is the distinction between OTT and CTV?
OTT refers to all linked gadgets and smart TVs. PCs, laptops, tablets, phones, and any other device with an internet connection that can view video content are all included.
CTV refers to the experience of watching streaming video on television sets (through linked TVs and set top boxes) using specific applications (such as Netflix or YouTube).
What is a CTV example?
Cord cutting, often known as cord shaving, is the practice of discontinuing traditional pay television services (such as cable or satellite) in favor of internet streaming alternatives. Netflix and Hulu are popular OTT services, while YouTube recently launched YouTube TV, which allows users to watch live TV.
What Happens Next for Connected TV Campaigns?
Following the completion of your Connected TV campaign, a variety of KPIs should be tracked. Some useful indicators to monitor are frequency, average time spent per ad, initial engagement vs. linear, and so on. Keep in mind that because CTV is so targeted, it’s critical to monitor vital demographic information such as age, gender, income range, and education levels.
