Connected TV (CTV) advertising is no longer an emerging trend in the UK, but rather a must-have for brands looking to reach engaged audiences. CTV advertising offers a unique opportunity to communicate with an audience in the comfort of their own home while watching their favourite shows. Connected TV is becoming increasingly popular due to the rise of streaming services such as Netflix, Now TV, Apple, Amazon Prime, and others. Any device that is intended to handle multimedia and connect streaming from the Internet can support connected TV advertising.
According to research from Statista, in 2014 just 11 percent of households in the UK owned a Smart TV, whereas, in 2022, nearly 67 percent of households reported owning a Smart TV. With such an engaged audience ready and waiting, it’s no surprise that advertising on connected TV is an attractive proposition for businesses looking to stand out from the competition.
What are the Benefits of Connected TV Advertising?
There are a variety of benefits of CTV advertising for businesses of all sizes. Firstly, CTV advertising is great for precision targeting, it reaches a mass, engaged audience. With more and more people using connected TVs, CTV advertising can be used to reach a broad range of viewers, from different demographics and areas. You can laser focus your ads to device type, device models, frequency capping, cross-channel advertising, lookalike audiences, targeting (first-party and third-party), time of day and day of the week.
CTV advertising also offers a way to stand out from the competition, with the ability to target specific audiences, it helps ensure that your ad spend is as effective as possible. Since ads are tailored to suit the specific interests of the user, they tend to be much more memorable and engaging. As well as offering advertisers a more effective way to reach potential customers, CTV also offers a range of powerful ad formats. From video and games to interactive polls and quizzes, there’s something to suit almost any campaign. This makes it a great way to drive brand awareness and encourage engagement.
Another benefit is that CTV enhances user experience, it allows for full-screen delivery of targeted, highly customized, HD-quality advertisements with stereo sound. This means better ad quality which enhances brand loyalty and increases brand visibility. Moreover, advertisements on connected TV provide a natural large-screen experience with excellent ad viewability. It mimics the look and feel of regular cable television. Consumers not only pay greater attention to CTV advertisements, but they also watch them for longer periods.
Real-time advanced reporting
With traditional TV ads, advertisers only receive insights about their campaign’s performance after it has been running for one to two weeks. Since Connected TV is a digital platform, it allows real-time reporting you can access anytime. Being able to access this type of data allows advertisers to analyse and adjust accordingly to optimise and improve their campaigns in real time.
Some of the most important metrics to track on CTV are:
- Completed view rate
Overall, there’s no doubt that connected TV advertising is a powerful tool for businesses. By taking advantage of its highly targeted and personalised ad formats, businesses can reach an engaged audience and stand out from the competition. Plus, with its affordability and cost-effectiveness, it’s a great way to get the most out of your advertising budget.
Three types of CTV ads Dominate the Marketplace
1. Home screen placement ads: These ads sit on the home screen of certain Over-the-top (OTT) services. Users can often click on them to get more product information.
2. In-stream video ads: These are video-ads integrated into the streamed video content. They tend to range from 15-30 seconds long. They serve as non-skippable commercial breaks, creating a similar user experience to that of linear TV.
3. Pre-roll ads: These are ads that roll before the viewer’s selected content. These ads may feature links that take you to websites and retailers. On OTT TV services that are ad-supported, pre-roll ads run before longer content like a movie.
If you’re interested in connected TV advertising for your business, get in touch with All Response Media’s TV services team.
All Response Media Viewpoint
Although all seems positive, especially by Saleshouses which push the narrative, CTV isn’t what it appears to be when delivering effective performance at a reasonable trade-off with cost.
- Scale / viewing is currently very limited (for ad supporting services anyway)
- More targeting is not always more effective because of the additional, often prohibitive costs involved. The power of ‘wastage’ contributes to your bottom line.
- Reporting is not great from the providers … in fact it’s mostly awful
Marketers are alwasy very quick to jump on the next ‘shiny new object,’ and rightly so in a bout to saty one step ahead of competitors, but the cost of CTV advetising is simply not where it needs to be to perform anywhere near as well at driving action as traditional TV does.
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