CTV Connected TV
It should be no surprise that CTV connected TV is currently one of the advertising mediums expanding at the quickest rate. Connected TV advertising is an efficient method for reaching your desired demographic because they are highly targeted, unskippable, trackable, brand-safe advertisements that are certain to affect the viewer. They deliver an advertising experience of broadcast quality without being bound by the limitations of linear TV advertising.
Connected TV advertising is becoming a regular component of the marketing mix for many firms, which should not be surprising given their impressive lineage. To stay up with everything, you need to become familiar with the ins and outs of this innovative technology.
Let’s start with the fundamentals by discussing the lingo and terms used in the television media buying industry. When people start flinging three-letter combinations like OTT, CTV, and GRP in conversation, you better know what they’re talking about. After all, to become an expert on the digital TV environment, you should familiarize yourself with the differences between Programmatic TV, Advanced TV, and Addressable TV.
A recent study conducted by Keynes showed that there had been a 4.4% increase in paid search conversions after seeing a CTV advertisement. The results of this experiment demonstrate that including high-quality Connected TV ads as an essential component of this advertiser’s marketing plan today is extremely beneficial.
In this introductory guide to the world of CTV, we are going to cover everything important that you need to know. Whether you are an advertiser, a streaming services provider, a publisher, or just a reader who is interested in the booming technology, this article will provide you with a complete understanding of:
What Is CTV?
Have you often wondered what is CTV? The connected TV definition is explained as a type of device connected to the internet. A CTV device can be referred to as a gaming console or an over-the-top (OTT) device.
A user of a connected TV can watch more television programming beyond that displayed on linear TV by using one of these devices or an app to stream it from the internet. We can retarget and measure consumers who have viewed Connected TV content using advanced TV techniques.
This sort of content can be targeted programmatically and provide real-time digital data that can be used to determine the reach of an advertisement, its viewability score, CPM, and more.
Connected TV Examples
CTV examples include:
The list continues as more companies add services to this unique platform. This should answer your questions about what is CTV advertising and why it is so important. The phenomenon known as “cord-cutting” results from rapidly developing CTV and OTT services. This means a growing trend of customers canceling their traditional cable and satellite subscriptions and using streaming or video-on-demand services as their source of entertainment. This technology enables the personalization of content and more advanced audience targeting methods for advertisers’ TV commercials.
What Is Linear TV?
The traditional television industry is undergoing shifts as a direct result of the market disruption caused by the growing popularity of alternative methods of content consumption. Due to the more recent technologies, there have been multiple signs that linear TV is being taken over by non-linear TV.
Now that all we hear is Connected TV or streaming TV, have you wondered what is linear TV or what is linear TV advertising? Linear television, sometimes known as “conventional” television, describes television broadcasts in that viewers tune in to particular times and on particular channels.
Linear TV Examples
Linear TV examples include programs that were already broadcast but saved to a Digital Video Recorder (DVR) and viewed later. Although linear TV advertising continues to have the largest share of the video advertising business, the competitive environment has become more fragmented in recent years. If current trends continue, over three-quarters of purchasers will shift their expenditure from linear TV to CTV. This would likely result in CTV spending exceeding that of linear television.
Nonetheless, some companies have advanced linear television to the next level using Cloud TV. Because of this, they can supply their services and OTT services while leveraging cloud-based infrastructure. This allows them to keep linear TV’s sturdy character and scalability while benefiting from access to the same technology as OTT services. This technology enables the personalization of content and more advanced audience targeting methods.
We know that the standard method for creating TV commercials is known as linear advertising. It is an approach that targets channels and programs based on outmoded demographic categories like age, gender, and time. This method is content-oriented. In general, linear television’s environment is competitive, with limited inventory and flexibility.
What is non linear TV? Non-linear or digital TV allows commercials to be displayed across all streaming services. When programmable software is considered, any device can be utilized to communicate with a listener or viewer.
When considering linear TV vs digital TV, the latter compiles viewer information for more accurate demographic profiling. Compiling information on linear TV markets is a time-consuming process that only provides estimates of the outcomes.
Nonetheless, linear television is still prevalent for live events, such as sporting events or game shows, in which viewers can submit votes. Streaming services compete for a larger portion of live sports, although linear TV buying is still common in this space because of the technical limitations, such as higher latency.
Soon, the connected TV vs linear TV debates will be partially determined by the degree to which the most important players in a sector are willing to embrace new forms of innovation and technology. When considering linear TV vs OTT, some of the industry’s most significant players have introduced their own OTT services, including NBC’s Peacock, Disney Plus, and HBO Now.
Over The Top is a streaming service distributing material over the internet. OTT is an abbreviation for these services. This means the service is provided “on top” of another existing platform. Audio OTT services include Spotify, while video OTT services include Netflix and Hulu. When considering Connected TV vs OTT, the latter can be accessed and enjoyed on any device with access to the internet and a display. Even apps like WhatsApp, Viber, and Telegram are examples of OTT services since they function by enabling users to share information via their internet connection.
Many individuals who watch linear TV are annoyed by many commercials, to the point where they frequently get up and do something else or brew tea while one of the commercials is playing. They find advertising so annoying because, in general, they are not interested in the products being advertised to them. Through CTV vs OTT debates, advertisers are becoming more aware of the necessity for more creative, data-driven, and targeted advertising experiences; the OTT environment provides them with the potential to fulfill this requirement.
OTT advertising has several advantages as compared to traditional linear TV. Because it is delivered as a digital stream, OTT content enables more precise advertising targeting. It provides advertisers with effective tools that may be used to target consumers and make use of analytics at reduced costs. Compared to linear television advertising, this creates a more positive experience for both consumers and advertisers.
Connected TV advertising is an example of a private marketplace transaction (PMP deal). The ecosystem for purchasing programmatic media is structured with various tiers of auctions, and each level of the “waterfall” has its own set of restrictions for price and access. The private marketplace inventory sale is merely one auction level above the open exchange. However, it allows marketers to acquire specific placements in an auction with fewer bidders, which results in higher win rates.
The private marketplace is accessible only by invitation and features a collection of publishers of the highest level. In addition, CTV advertising examples provide access to inventory located within particular site parts, sub-sections, or unique forms, some of which might not be particularly targetable in an open auction setting. Display, video, and audio formats, as well as native and linked TV, are examples of creative formats that may be made available in a private market.
Marketers who have traditionally utilized linear TV advertising for awareness-based campaigns because the medium provides the opportunity to reach highly engaged audiences may consider switching to digital TV advertising. Connected TV advertising provides these similar benefits, in addition to enabling increased targeting options and inventory selection, which together produce a channel that is both efficient and effective for reaching a growing market.
In the past, television was only available on a select number of channels and adhered to a rigid timetable when it was shown to the general public. Because of advances in technology and increased levels of connectivity, people’s viewing habits have also evolved, and they are no longer restricted to the conventional practice of watching linear broadcasts. Because of this, the demand for CTV Connected TV has boomed.
Since you are now familiar with the definitions of various TV terminology, you are presumably curious about how these terms influence and contribute to the current condition of television advertising. The pandemic hastened the rise of streaming, compressing years of technological development into a matter of months at most. It is anticipated that connected TV platforms will experience significant growth over the next few years, even though it currently accounts for a smaller share of overall TV advertising. This is because audiences continue to adopt digital streaming as their primary TV method.
Most households worldwide no longer watch television together as a family once a week and mostly on television. They now watch connected TV YouTube or connected TV channels like Hulu TV on their mobile phones, laptops, and televisions. As a result of viewers being able to choose what to watch, when to watch it, and where to watch it, a hybrid audience has emerged.
With this rapid development, large broadcast networks must examine fresh ways to sell and provide their content. Combining cable and digital impressions is one of the most efficient ways to approach digital marketing since it uses all of the instruments already at the marketers’ disposal. Advertisers have a fantastic opportunity to bridge the gap between linear TV and newer platforms such as CTV and OTT.