Connected TV Ad Agency
While most are familiar with linear TV advertising and working with a linear TV ad agency, the days of needing that knowledge are quickly fleeting. In fact, the right of Connected TV marketing and Connected TV devices is coming quicker than some agencies are ready to handle. Fortunately, this article will explain everything needed to know about what is Connected TV and what a Connected TV ad agency can do for an Advertisers brand.
Connected TV Definition
Before diving into the details of Connected TV (CTV) advertising, let’s discuss what CTV is. CTV is a device that can stream today’s more popular content over the internet. These devices can include video game consoles (Xbox or PlayStation, for example), smart TVs, apple TVs, etc. As long as the device can connect to the internet, it can stream the world’s most popular content at a push of a button. That is the very definition of “what is CTV”.
It is not uncommon to hear CTV referred to as smart TV advertising, since smart TVs are a CTV device. CTV can also be referred to as OTT, which we will go into more detail later in this article. CTV should not be confused with Hulu, HBO or other streaming services. CTV only refers to the Internet connected device that is able to stream content anywhere, anytime.
While some Advertisers believe they can save time and money by launching their own live campaigns, it is often better to rely on a Connected TV ad agency. Since CTV advertising is different from linear or traditional TV advertising, Advertisers may not have all of the knowledge they need to launch a profitable campaign. This can lead to mismanaged ad dollars and a negative ROI. By relying on a CTV advertising agency with qualified industry expertise, Advertisers can most effectively reach their niche audience with specific and persuasive messaging. This also avoids headaches and frustration along the way, and allocates more time to other aspects of growing a brand.
Moving forward, the remainder of this article will cover the details of CTV advertising and OTT advertising, and additional statistics about CTV/OTT advertising.
Linear TV is also known as traditional TV. This type of programming only allows advertisers to display their message on specific channels at specific times. One great example of linear TV advertising are commercials during an episode of Friends on NBC. If a viewer is not sitting in front of his or her TV when an ad is playing during its air time, he or she will miss it. Therefore, the Advertiser paying for the ad just wasted a lot of money and missed out on getting their message to the right members of an audience. With the hefty cost that comes with advertising on linear TV, it hurts to know viewers may not be glued to their TV during the commercial break. A 3 to 5 minute TV commercial is the best time to either mute and go about with a task, or pick up a mobile phone to text a friend back and search the web. After all, linear TV advertising requires Advertisers to pay based on the ratings. Higher ratings mean a greater cost.
Linear TV is dying as more individuals cut the cord and switch over to streaming services. This is where connected advertising becomes so important. Advertisers cannot afford to rely on “this is the way we’ve always done it.” With consumers switching from linear TV to Connected TV, Advertisers must also adjust with the times and work with Connected TV advertising companies to get their message to their potential customers.
As mentioned, the Connected TV definition is any Internet-connected device that can stream content. Most CTV advertising agencies will help both craft the right messaging and narrow down an Advertisers target audience to their niche. With Connected TV advertising, an Advertiser can create ads based on the type of device their audience is using to stream content. Getting creative with messaging and speaking directly to the individuals on a TV screen who best fit the brands products and/or services is the greatest way of creating credibility for a brand name.
Before CTV advertising, Advertisers were taking a gamble to target an audience in front of the TV watching the channel they paid to display an ad. Today, there is greater control of where an Advertiser’s ad is displayed and who it is displayed to. This puts ad spend to work and helps a brand attain a greater ROI.
Before getting into OTT/CTV advertising, here’s a quick differentiator between Connected TV vs OTT. OTT means Over-The-Top, which refers to content that is streamed over the Internet. This is not the same as the device that is connected to the internet (which is the Connected TV). Instead, OTT refers to the content that is being streamed. OTT advertising shows ads in specific types of content, such as shows, movies, or online videos.
With the plethora of streaming services out there for a customer base to subscribe to, there are various entries to OTT advertising platforms. Some of the most popular platforms include Hulu and NBC’s Peacock. OTT advertising companies can even help an Advertiser determine what platforms their customers use every day to stream their favorite shows.
OTT advertising takes the very basics of linear advertising and expands on it to provide exponential growth for a brand. If an Advertiser previously competed to have linear TV ads played on Comedy Central, they’re able to now develop OTT ads that play on NBC’s Peacock during every show their audience watches. OTT advertising examples are endless. They range from from international powerhouses to small, local businesses playing OTT ads that ultimately convert viewers into customers.
CTV/OTT advertising is quickly growing into the largest marketing channel in the world, with a rapid uptick resulting from the COVID-19 pandemic with so many individuals being remote and tuning into streaming services.
How to buy OTT advertising
This is where a CTV ad agency comes into play to assist an Advertiser.
Simply put, OTT ads are purchased and sold on private marketplaces (PMP). Since these are invitation only, it can be hard to even get into a PMP without being an established Connected TV ad agency. From there, auctions are held to place OTT ads on certain streaming services and shows based on the niche audience(s) of a brand.
With the rapid rise in Connected TV advertising platforms, some companies are focused solely on CTV measurement statistics to prove the validity of this new form of advertising. Some of the most shocking Connected TV advertising statistics include:
These statistics prove just how quickly Connected TV platforms are growing and the type of potential that is available for Advertisers to capitalize on. A Connected TV advertising example could even be that those who run eCommerce stores are more likely to experience the exceptional benefits of Connected TV advertising because their customers are located around the world.
While viewers have become accustomed to Netflix not displaying ads during their marathons, the days of CTV devices not having ads are coming to a close end. Companies across the globe are becoming familiar with the money and growth opportunities, which in the end will help Advertisers reach their target audience through CTV/OTT advertising.
Working with an experienced Connected TV ad agency provides access to a team of experts who know how to identify an audience and craft an ad that speaks directly to them. When done correctly, viewers engage more than ever before. Using CTV/OTT advertising allows Advertisers to now customize creative messages that will speak and persuade consumers, compared to just pushing a general product and/or service commercial.