When we first launched Morgan & Co., linear TV ad buys were pretty straightforward. We had a handful of stations to choose from, and selected ad flights based on audience, messaging and goals. It allowed us to create a thoughtful strategy to ensure our clients were seen and heard.
Fast forward to today’s digital world – connected TV (CTV) has flipped the script, as fewer and fewer consumers have linear television and have moved into this new space. As linear TV for advertising loses its former relevance, CTV is paving the road for more flexible and selective advertising.
As we remember from previous CTV blog posts, connected TVs can be supported by any device that streams from the Internet (internet-capable TVs, video game consoles such as Xbox, PlayStation, Blu-ray Disk Players, or Smart TVs). Using CTV devices, the viewer can access video streaming services (Netflix, Hulu, YouTube, Discovery+, HBO Max, etc.) and search for movies, sitcoms and other digital content on the web. Compared to traditional TV, which is primarily focused on broadcasting the big networks’ signals, these new-generation devices are all about online interactive media, Internet TV, over-the-top content (OTT), and on-demand streaming media. Last year, there were more than 195 million CTV users in just the U.S., and that number is predicted to continue climbing.
Looking at this year’s ad spending, sources such as eMarketer.com estimate that advertisers will spend up to $2.37 billion on CTV. That figure will represent almost 29% of all incremental spending on programmatic video ads this year, or about 15% of growth in total programmatic display.
So why should you pursue advertising via CTV? Here are a few reasons we are strong advocates for buying time and space in the connected TV world:
Targeting is one of the best connected TV benefits recognized by marketers in 2020. In order to use Smart TV, users are required to log in via identifiers such as Facebook or Google accounts. The technology can use third-party data to complete users’ profiles based on geolocation, zip code, interests, online behavior, device, language and more. Precise audience segmentation allows targeting to more receptive audiences with relevant messages, therefore bringing more value to the brand.
Connected TV supports targeted, highly personalized, HD-quality ads with stellar sound, delivered to your audience’s full screen. This means giving the brand a better opportunity to showcase higher ad quality, further boosting exposure. Also, smart TV-connected users choose the content they want to watch, the way to consume it and how they interact with it. Such high levels of control lead to higher levels of satisfaction among viewers, which leads to a better perception and positive attitudes towards ads they are shown in between their favorite shows.
Video Completion Rate
Ads played via CTV are often on a large screen, resulting in high ad viewability. Ads are shown while you have the consumer as a captive audience. They not only pay more attention to CTV ads but also tend to watch them for a more extended period.
As CTV continues to expand in the advertising landscape, even Nielsen acknowledges its importance, as they begin to measure YouTube and YouTube TV apps on CTV in 2021 as part of their Digital Ad Ratings and Total Ad Ratings. This will help media buyers better understand and verify these audiences and give them the ability to better measure the success of their campaigns across platforms.
CTV advertising is a powerful and efficient way to reach potential consumers through cross-device targeting. It allows brands to know where their audiences are and connect with them through a more focused and meaningful way. Our team at Morgan & Co. is creating strategies that keep our clients ahead of trends like these. Contact us today to learn more about CTV and if it’s a fit for your marketing and media strategy.