Connected TV Advertising and Connected TV Devices


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Connected TV Advertising and Connected TV Devices

Connected TV Advertising and Why It's Relevant

Also commonly referred to as CTV advertising for short, the Connected TV advertising definition points to a term used to describe advertising campaigns that are specifically targeted towards devices that are used to stream content over the Internet, as opposed to through traditional cable television services.

Rather than paying for ad time the “old fashioned way” – during popular shows with demographics that matter to a viewer – connected TV programmatic advertising allows an advertiser to take his or her brands content directly to the people by way of not only “smart” television sets, but also streaming set top boxes like the Apple TV, the Chromecast, the Roku and more.

So what is CTV advertising? In short, it’s an opportunity to target the types of relevant content channels that the viewers in an advertisers target audience are already paying attention to with long form, non skippable online advertising via devices that they are actively engaged with. People are continuing to “cut the cord” and move away from traditional cable television packages. This is a trend that shows absolutely no signs of slowing down. Rather than dealing with “appointment television,” people enjoy the freedom of Connected TV devices because they can watch all of their favorite content anywhere, at any time, and from virtually any device with an active Internet connection.

CTV advertising isn’t just an invaluable opportunity to reach those users who have left traditional means behind. It’s also a perfect chance to target people with more relevant, high value content than ever. With the types of analytics available to connected TV programmatic advertisers, they’re able to accurately target people in specific geographic locations, with specific interests or even in certain demographics – all things fairly difficult to do with certainty via “traditional” advertising. And these types of connected TV boxes are only expected to become more popular as time goes on.

Of course, as was true with traditional advertising, it’s still possible to use this particular ctv advertising channel and not get the results striving for. And that’s why it’s crucial to understand the programmatic space to optimize ROI. Therefore, to take full advantage of everything that connected TV devices has to offer, tune in to the critical points below.

Addressable TV and Connected TV Devices

Addressable TV takes the gains that allows advertisers to advance their connected TV ad spend one step further.

Because viewers now watch what they want, when they want, and on whatever device they want or have, advertisers can’t simply craft an advertising campaign that casts the widest net possible and hopes for success. Instead, they should be crafting specific messages for specific demographics – and that is what Addressable TV advertising is all about. The viewing habits of users aren’t just more fragmented than ever before – they’re fragmented between people watching the same show at any given time.

That, in essence, is what Addressable TV advertising is all about. This gives an advertiser the ability to show different ads to different households – even if they’re all watching the exact same show at the exact same time. With this type of opportunity, an advertiser can move beyond the large-scale restrictions of a traditional linear TV ad buy and focus more on things that matter a great deal like the relevance of the ad campaigns message and the impact it will have on its viewers.

This concept is a big part of why connected TV growth is through the roof right now – by making sure that viewers get more relevant and interesting ads all the time. For example, retargeting a user must be precise in targeting the users most likely to convert. Not only does this guarantee a better return on investment for an advertisers connected TV ad spend, but it also increases revenue, helps propel future growth and instills a tremendous amount of loyalty in the advertisers audience, simultaneously.

What is OTT Advertising?

OTT stands for “over the top.” In OTT channels, it’s a term used to describe any situation where users are streaming their favorite content over the internet, rather than traditional cable or satellite service. This service is extremely important to advertisers, as OTT advertising gives them the flexibility to reach users anywhere, at any time.

Just a few of the most popular OTT services available today include:

  • HBO Max
  • Hulu
  • Netflix
  • Amazon Prime Video
  • YouTube
  • Sling TV, and more

In truth, OTT is the type of thing more individuals have been experiencing for years, even without realizing it. For instance, firing up the Apple TV after a day of work and navigating to Hulu, a viewer will come across advertisements before and during the desired show(s). Additionally, these ads shown are typically relevant – perhaps it aligns with a google search earlier that day made on a smartphone device.

This is the magic of OTT advertising in action – by giving advertisers the ability to show ads that are far more relevant to someone’s interests, they stand to keep that interest for as long as possible.

To put it another way, think about things in terms of the major reasons why linear TV advertising is essentially failing these days. If 10 million people are all watching the same show at the same time, an advertisers marketing message will be exposed to a massive audience. But how many of those people are actually representative of the advertisers ideal customer? How many of those people actually care about that advertisers message?

What’s worse is if an ad is relevant to someone’s interests, but they’ve already gotten up and left because the last three ads were not.

These are the types of issues OTT advertising acknowledges. Advertisers are now able to leverage their data and analytics to specify an intended and accurate audience target. And additionally, most ads are non skippable, making chances higher for a relevant and targeted ad campaign to catch viewers’ interest to watch the entire message.

This is yet another opportunity that traditional TV advertising simply does not afford a advertiser.

CTV Advertiser Examples

All told, there are a wide range of different Connected TV advertising platforms for an advertiser to choose from depending on the audience intended to target. In addition to smart television sets with their own onboard Internet connection, some of the most popular CTV devices available today include:

  • Apple TV/Apple TV 4K
  • Google Chromecast
  • Amazon Fire
  • Roku
  • Blu-ray players with their own Internet connections and app stores
  • Gaming consoles, such as PlayStation 5 and the Microsoft Xbox One, which also contain their own app stores and ctv media platforms

These are all devices that plug directly into a TV connected to the Internet, which then enables the use of apps and video streaming services to watch content. And most of the major connected TV examples above allow many connected TV advertising opportunities for advertisers.

Listed below are some of the biggest connected TV advertising companies today:

  • Hulu
  • The Trade Desk
  • Google
  • Amazon
  • FOX
  • ABC News
  • CBS, and more

Android TV is another notable connected TV advertising example. They actually allow advertisers to run ad campaigns on the home screen of user devices – exposing users to advertisers message(s) before they even select content to watch. One may assume that users would find this irritating, however the Android TV market share is actually higher than Microsoft Xbox, Chromecast and even tvOS!

In the end, it’s clear that CTV advertising is an opportunity that advertisers cannot afford to ignore – and it’s one that will only become more powerful and essential as time goes on.

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