As technology gets more advanced, we have seen a rise in streaming video applications and services. One such platform includes smart TVs. According to research by Parks Associates, close to 70 percent of broadband households in the United States own a video streaming device.
These TVs have access, not only to traditional programming, but also to Internet and web content. This puts advertisers on a whole new playing field for advertising and reaching consumers with compelling ads and messages.
In fact, according to eMarketer, online ad spending will surpass $50 billion by 2023. With these numbers in mind, let’s look at how connected TV has changed ad tech forever and what businesses can do to get ahead of competitors.
While we have been familiar with linear TV advertising for decades, a new player has entered the picture that promises to redefine how video is consumed. Connected TVs, also called Internet-connected or hybrid TVs, are now sold by all major brands.
This dramatic rise in adoption will allow marketers to reach consumers on their preferred devices.
As its name implies, one of connected TV’s biggest selling points is that it combines all media formats into one. It delivers traditional video ads, display ads, and rich media ads via an Internet connection.
They represent a great opportunity for advertisers who want to reach viewers through ad technology innovations such as data-driven ad buying and viewability measurement.
Consider using connected TV advertising if you’re looking to stand out from your competitors’ advertising campaigns on digital platforms like social networks or mobile apps.
This type of marketing will allow you to target specific demographics based on information about them gathered by connected TV providers, including age, gender, and income level.
For example, if you run a business that caters to senior citizens, you might use connected TV advertising to let seniors know about your products or services. This targeted approach can help you avoid wasting money on ads that don’t appeal to potential customers.
CTV is a programmatic device that uses digital measurement designed with great accuracy and precision; this feature gives it a unique edge compared to linear TV.
Connected TV ads are sold only in limited marketplaces, which has led to a higher win rate. Additionally, it allows marketers to reach high-quality viewers with targeted ads.
The big question is, what are some ways to measure the effectiveness of a Connected TV advertising campaign? One way is by using the number of website visits an advertisement drives. But this alone is not always an effective metric.
Other ways to measure effectiveness might include describing certain performance metrics like video completion rate, cost per thousand impressions, and cost per completed view. These descriptive measures give advertisers information on how many people saw their advertisement and give them an in-depth analysis of the percentage of those who watched it through or dropped out before it was finished.
Remember: when marketers need to measure how an ad campaign influences consumer behavior, they must keep tabs on the customer journey. With new-age tools such as CTV measurement and campaign management, brands can have data on ads watched, actions taken after viewing the ads, and marketing efforts over all channels.
This way, they are better equipped to make informed decisions about future ad campaigns with a reliable platform that delivers accountable, efficient results for CTV measurement.
The connected living room represents a huge opportunity for marketers, largely ignoring television advertising since moving their budget online. But, with so many new connected TV devices entering homes across America, there are bound to be opportunities and money left on the table.
Marketers that jump on board now will stand a better chance of being front of mind when consumers decide they want one of these devices.
There are also potential opportunities around targeting and measurement—areas where it looks like advertisers will be taking an interest sooner rather than later. If you haven’t been paying attention to connected TV yet, it might be time to research what makes sense for your brand.
With brands focused on unique, customized brand experiences and consumers increasingly focused on tailoring their own entertainment experience; connected TV offers advertisers a new opportunity to create custom, engaging ads that seamlessly fit into viewers’ daily lives. However, it’s safe to say we’re only scratching the surface of what connected TV can do for advertisers.