Connected TV (CTV) advertising refers to the delivery of video ads through internet-connected television devices, such as smart TVs and streaming devices (e.g., Roku, Amazon Fire Stick, Apple TV), gaming consoles (more about the definition of CTV vs OTT). These ads are served within streaming content, including on-demand videos, live streams, and subscription-based platforms like Hulu, Netflix (with ad-supported tiers), YouTube, and more.
Key Features of CTV Advertising:
Targeting Capabilities:
CTV advertising allows for advanced audience targeting based on demographics, interests, viewing behavior, and location.
Advertisers can use first-party and third-party data to reach specific audiences.
Advertisers can deploy dynamic creative strategies to match the messaging within their ad to the audience being targeted (more here).
Measurability:
CTV provides detailed metrics, such as attention, completion, engagement and performance, enabling advertisers to measure campaign effectiveness more accurately than traditional TV advertising (example here).
Programmatic or Managed Service Buying:
Many CTV ads are purchased programmatically, allowing for real-time bidding and automated ad placements, which increases efficiency and scalability.
Alternatively, experienced Ops teams can manage budgets meticulously, even pausing campaigns in-flight for brief periods should the need arise.
Non-Skippable Ads:
Unlike some digital video ads, CTV ads are non-skippable, ensuring that viewers watch the entire ad.
When coupled with creative solutions, such as Origin Slingshot, to elevate and ensure attention remains on screen, brands see a significant lift in brand awareness, consideration and other key performance indicators (read more about the difference between delivery and campaign success here)
High Engagement:
CTV viewers tend to be more engaged than traditional TV viewers, as they actively choose the content they want to watch.
Cross-Device Reach:
CTV campaigns can be integrated with other digital channels (e.g., mobile, desktop) to create a cohesive omnichannel strategy (read more about Mixed Media Model strategies here).
Main Benefits of CTV Advertising:
Reach Cord-Cutters: CTV allows advertisers to reach audiences who have moved away from traditional cable or satellite TV.
Better ROI: With precise targeting and measurable results, CTV often delivers a higher return on investment compared to traditional TV (see detailed case studies here).
Interactive Ads: Some CTV platforms support interactive ad formats, enabling viewers to engage directly with the ad either via remote control or through a QR code (read Origin's whitepaper on Shoppable CTV here).
Challenges of CTV Marketing:
Fragmentation: The CTV landscape is fragmented across multiple platforms, devices, and content providers, making it challenging to standardize campaigns.
Ad Fatigue: As more advertisers shift to CTV, there is a risk of overwhelming viewers with too many ads. However, the nimble nature of digitally delivered ad creatives means this can easily be avoided (discover solutions to ad fatigue here).
Privacy Concerns: With increasing regulations around data privacy (e.g., GDPR, CCPA), advertisers must navigate compliance issues when using viewer data for targeting.
Top Trends in CTV Advertising:
Growth of Ad-Supported Streaming: Platforms like Netflix and Disney+ are introducing ad-supported tiers, expanding opportunities for CTV advertising.
Advanced Attribution Models: Advertisers are leveraging multi-touch attribution to understand the impact of CTV ads on conversions across devices.
Interactive and Shoppable Ads: Innovations in ad formats are making CTV ads more engaging and actionable, which in turn is driving a level of performance which has never been seen before in the living room.
How CTV Differs from Traditional TV Advertising:
Targeting: Traditional TV relies on broad demographic targeting, while CTV offers granular, data-driven targeting.
Creative Freedom: Advances in creative technology, driven by companies such as Origin, means that Connected TV advertising gives advertisers the same creative flexibility in the living room as they have on other platforms such as social media (learn more here).
Measurement: CTV provides real-time analytics, whereas traditional TV relies on estimates and panel-based data (e.g., Nielsen ratings).
Flexibility: CTV campaigns can be adjusted in real-time, unlike traditional TV ads, which require longer lead times for changes.
In summary, CTV advertising is a dynamic and rapidly growing channel that combines the reach of television with the precision and measurability of digital advertising. It’s an essential component of modern marketing strategies, especially as consumer viewing habits continue to shift toward streaming platforms.
If you find this topic interesting and would like to know more, you can schedule a consultation with one of Origin's CTV specialists by clicking here.
Origin is an award winning provider of creative solutions and services for brands, creative teams and media agencies who want to transform conventional CTV ad creatives into powerful, personal and provocative advertising experiences.
With unparalleled creative capabilities and proprietary ad serving technology, Origin’s unique suite of dynamic ad overlays and native CTV ad extensions allows advertisers to engage distracted audiences and achieve the results they want.
Founded by media veterans Stephen Strong and Fred Godfrey, Origin is driven by the belief that winning viewers today requires breaking free from how it was done yesterday.
Learn more at: originmedia.tv
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