Did you know that in 2023, the number of CTV users in the United States was more than 110 million?
Advertisers and business owners should embrace this change as viewers shift from linear TV to streaming services.
But while that number’s enough to shift your focus, connected TV advertising has other benefits too.
In this post, we’ll tell you 7 reasons to invest in CTV ads instead of linear TV ads.
So, if you’re wondering ‘why should I use Connected TV ads’, you’re in the right place. I’m Amy Gable and I’ve worked in TV advertising throughout the shift in consumer behavior from cable and satellite towards streaming services. What I like about connected TV is the unique opportunity to match the reach and impact of traditional TV while also targeting specific audiences like digital advertising.
You get the best of both worlds, so let’s dive right in and take a crash course on this powerful marketing channel.
What are Connected TV (CTV) Ads?
Connected TV or CTV refers to the television content you can access over the internet through streaming services like Hulu, Netflix, Amazon Fire TV, Apple TV, etc.
CTV lets consumers watch on-demand content as well as stream it live. Importantly, you can access this content on any internet-enabled device without the need to get a satellite TV subscription.
How is Connected TV (CTV) Different From Linear TV?
Linear and connected TV differ in several ways. Knowing these differences will help you understand why CTV ads tend to be more impactful.
On-Demand vs. Scheduled
Connected TV lets users stream content at their own convenience 24/7.
On the flip side, linear television involves scheduled content, allowing viewers to only watch it in real-time.
Hardware Differences
Linear TV relies on a satellite, cable, or antenna connection. Whereas, you can access content on streaming services on any internet-enabled device.
Flexibility
Linear TV offers limited control over the content. Viewers must stick to the broadcaster’s schedule.
CTV lets you cherry-pick your favorite content. Plus, you can pause, fast-forward, and rewind it whenever you want.
These differences make CTV platforms an attractive medium for advertising a business. With on-demand content, businesses can reach their target audience at any time and have more control over their messaging. This allows for a more personalized and impactful ad experience for viewers.
Why Should I Use Connected TV Ads? (Answered in Detail)
There are numerous attractive benefits of investing in CTV ads, including:
- Better targeting capabilities
- Reaching a broader audience
- Measuring results effectively
- Personalizing your ad content
- Triggering campaigns based on real-world events
Importantly, the data seems to back these claims:
If you’re considering investing in CTV ads, here are 7 reasons why it’d be the right decision.
Growing Steadily
Linear TV viewership is declining, which makes it a less effective advertising medium by the day.
Why’s that? Because the audience is shifting to platforms that offer a better viewing experience: Connected TV.
As CTV platforms continue to grow steadily, they offer an opportunity to advertise your business to a broader audience.
CTV Ads are Cost-effective
You may be able to reach tons of eyeballs with traditional TV ads.
The problem with traditional media is that your ad reaches a broad audience that may or may not be interested in your business.
With CTV ads, you can showcase your ads to specific audiences based on their:
- Demographics
- Psychographics
- Viewing behaviors
- Locations visited
- Local weather
Yes, that’s right! You can turn ads on or off based on things like snow, rain, or severe weather. That works like magic for roofing and restoration businesses or if you’re a retailer, you might target people who recently shopped at a competitor’s store with a coupon offer. As a result of these specific targeting criteria you can spend your ad budget on the right people, which helps your ROAS (Return on Ad Spend).
Diverse Range of Content
Most CTV platforms address the personalized needs of almost all types of content consumers.
For instance, they cater to a wide range of audiences by providing content in various genres including horror, comedy, and drama.
This lets advertisers reach their audience based on viewing activity and interests.
Omnichannel Marketing
With CTV ads, you can implement an omnichannel marketing approach.
For instance, you can integrate social media and email marketing to increase the number of touchpoints.
An increased number of marketing touchpoints improves your chances of converting a prospect.
However, effective omnichannel marketing requires consistency in branding, voice, tone, and messaging. Everything from your website to your ads should align with your brand identity to create a seamless experience for the consumer.
Variety of Ad Formats
CTV platforms can show your ads in a variety of ways and forms.
You can tailor your ads based on viewers’ preferences and your advertising goals.
Video ads can be pre-roll, mid-roll, and post-roll depending on where they’re shown within the main content.
- Pre-roll ads: Before the main video plays
- Mid-roll ads: Within the video content
- Post-roll ads: After the content played
You can also use interactive ad formats to engage your target audience.
For instance, you can add clickable elements to overlay ads and drive traffic to external web pages.
The external web page can be anything from your social media page to a landing page.
Other CTV ad formats include display, banner, and native ads. These ads tend to be less intrusive, allowing you to subtly introduce your business.
The bottom line is that you have a range of options to reach your audience at the right time and in the right manner. With the rise of connected TV, it’s important to stay ahead of the game and constantly adapt your advertising strategy.
Powerful Tracking and Optimization
Real-time tracking and measurement are crucial for optimizing any advertising campaign.
Unlike traditional TV ads, CTV ads offer robust performance-tracking features.
This enables you, the advertiser, to make data-driven decisions in real time and boost your ROAS.
For instance, you can track:
- Impressions
- Engagements
- Completion rates
- Click-through rates
- Conversions
Plus, unlike traditional TV ads, you’re not shooting an arrow in the dark with CTV ads hoping the right person will watch.
CTV ad platforms give you the data you need to understand your audience and dial-in things better over time. This includes:
- Viewing behavior
- Key demographics
- Interests
- And more
With all that data, you can select the right ad format, placement, and target audience for your campaigns. Combine that with a solid product or service, and you have a recipe for success in the fast-paced world of CTV advertising.
But what about CPMs?
With the ability to target specific audiences and track performance, CTV ads offer a higher return on ad spend compared to traditional TV ads. You can also set daily budgets and adjust bids accordingly to maximize your budget and reach. Costs measured in terms of CPM (Cost Per Milli) are also typically lower than traditional TV ads, making CTV advertising a cost-effective option for businesses of all sizes.
Advanced Measurement Capabilities
Campaign measurement in CTV advertising goes beyond the traditional metrics.
For instance, you can measure conversions across multiple devices with cross-device attribution.
This means you’d know if someone views your ad on a smartphone and takes the desired action on a desktop.
Plus, with third-party data sources, you can know if an ad viewer visited your physical location. This can help with repeat business and customer retention.
Why Should I Use Connected TV Ads: Conclusion
Connected TV advertising lets smart advertisers meet the modern content consumer.
Unlike linear TV advertising, it bridges the gap between you and your target audience.
Some amazing benefits of using CTV ads include:
- Precision targeting (Generate your desired ROI)
- Multiple ad formats and placements (Enhance brand visibility and engagement)
- Advanced tracking and measurement capabilities (Maximize your ROAS with ad performance optimization)
Integrate CTV advertising into your strategy to capitalize on these amazing benefits and get ahead of your competition.
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