What Is Connected TV Advertising and How Does It Work?

What Is Connected TV Advertising and How Does It Work?

The Latest Technique for Getting Your Brand in Front of the Masses

What Is Connected TV Advertising and How Does It Work?
Photo Credit: geralt/ Pixabay

You can reclaim advertising real estate and control of your brand messaging with connected TV advertising.

The digital universe is the perfect channel for delivering your brand messages to consumers in a multitude of ways. Unlike television, the internet is universal in its capability to empower you to deliver communications from anywhere to anywhere – and to nearly any device.

Now, internet-connected smart televisions are opening up a new, cutting-edge marketing channel – connected TV advertising. Internet-connected TV is any device that can stream multimedia content via the internet.

What Is CTV Advertising?

Now, consumers can receive your brand messages through internet-capable TVs, video game consoles, Blu-ray disc players and other streaming devices. The connected TV is the joining of the internet and web 2.0 capabilities into a new generation of smart televisions. Resultantly, CVT is a hybrid of television and computer technology.

These new devices feature a user interface that resembles a smartphone. Because of this, connected TVs are often called smart televisions. Connected devices can access a range of streaming services, such as:

  • Hulu
  • Movies
  • Netflix
  • Pandora
  • Photos
  • Spotify
  • Tidal
  • YouTube
  • On the other hand, traditional televisions can only receive media broadcasts. New generation smart televisions, however, enable consumers to engage with online interactive media, internet TV and pay-per-view content.

    What Is Connected TV? What Makes It So Special?

    Through the magic of widgets, consumers now have a range of new entertainment options. This latest iteration of television showcases the evolution of the medium.

    You may want to know what this has to do with your business. The answer is that you can advertise through every medium and device mentioned above.

    That's right. You can deliver your brand messages through nearly all of the popular applications and devices used by consumers today, and – of course – you'll still have access to traditional television advertising. With each device and software application, however, technical nuances will vary.

    Traditional television doesn't support internet-connected engagement. You can't use it to transmit digital ads like you can with an internet-enabled smart television. With CTV, however, you can reach consumers with your advertisements, and with perfect timing.

    Who's Using Smart TV Advertising?

    13.5 million households left traditional TV behind in 2019. In large part, this was due to the purchase of internet-enabled televisions.

    Now, over half of U.S. consumers use their smart TVs with Apple TV, Roku or gaming platforms. That's the equivalent of 164 million consumers with access to videos via their smart televisions. Experts forecast that this number will expand to over 204 million consumers by 2022.

    North America isn't the only region that's feeling the impact of connected TV advertising. In the United Kingdom, Japan and Germany, for instance, CTV penetration will rise past the 50% mark over the next two years.

    As a result, connected TV advertising is becoming a robust platform that marketers can use across a variety of applications and services. Best of all, it streamed right into the living rooms of your ideal buyers.

    In the coming years, advertisers are hungry to capture the attention of up-and-coming demographics, such as Gen Z and millennials. For now, smart TV viewers represent a little over 8% of the total viewing audience between the ages of 18 to 49. As time goes on and consumers adopt new technology, however, this percentage will rise significantly.

    The connected TV advertising opportunity is a boon for marketers and a powerful complement to website advertising. It enables brands to increase engagement and raise brand awareness right on consumers' multi-screens.

    Consumer research shows that 80% of consumers use devices such as their computer, tablet or smartphone to watch digital content. These viewing habits include texting to talk about programming as well as searching for information about actors, movies or shows.

    Targeted TV Advertising for Your Business

    Viewership across traditional television is dropping. At the same time, the cost to advertise on television is rising.

    Connected TV advertising is a new channel that you can use to grow your audience. This kind of opportunity is essential for your brand.

    Today, many consumers don't watch a second of live television. As consumers gravitate toward smart TVs and other devices, this change in habits creates a unique opportunity for you to reach your audience with precision accuracy.

    Data-enabled devices enable companies to use business intelligence tools to track how consumers behave, what they buy and what they do. This wellspring of information is a never-ending opportunity to learn about the nuances of your audience.

    In the coming years, connected TV advertising will become more prominent. As advertising switches from traditional television to CTV, marketers can save on campaign costs.

    What's more, your brand can get more bang for your buck with CTV. Research shows that families with smart TVs consume entertainment with at least 2 to 3 people in the room. What this means is that your brand will receive more impressions per advertisement as smart TVs become more popular. Over time, your cost per impression will drop drastically.
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