How to get started with connected TV advertising
Analysis
This is a quick overview guide to all things Connected TV, as linear TV viewing slips for the first time behind streaming. As brands search for efficient ways to scale, there are fewer, ripe opportunities than integrating Connected TV into the marketing mix.
The reality is that brands need both reach and trust to find new relevant audiences and successfully scale. Social channels alone have limitations and lack the impact and attention of landing a new brand on the big screen. Equally, brands that have traditionally used TV will find that the impact of linear viewing has waned, save for high exposure live sporting events. Meanwhile, streaming services from ITV, to Sky, to Netflix and Disney+ now offer interest based targetting, digital attribution tools and premium, relevant audiences, with low competition and barriers to entry. For now...
The below guide is designed to be scanned in 5 minutes or less, giving you a fast introduction in to the capabilities of Connected TV. If you are interested to know more about how Connected TV becomes the tool you use to scale efficiently, then get in touch.
Connected TV | An overview
Connected TV (CTV) combines the power of traditional television advertising with the precision and reach of digital marketing to create a powerful and effective way to reach audiences watching streamed TV services, from ITV Hub, to Netflix, from Sky to Disney+. CTV advertising is a form of programmatic advertising that uses the internet to deliver ads to smart TVs and other connected devices. It allows marketers to target specific audiences and measure performance in real time, making it an essential tool to drive brand awareness or as an integrated conversion campaign.
CTV advertising is becoming paramount for marketers in a world where streamed TV has overtaken linear TV, with more and more people cutting the cord and relying on their Smart TVs for all viewing needs. As brands struggle to reach new relevant audiences online, specifically Meta - adding Connected TV into the mix is a must.
What is connected TV advertising?
Connected TV (CTV) advertising is a form of programmatic advertising that enables marketers to deliver targeted ads to audiences using video-on-demand such as ITV Hub, Channel 4OD, Sky, or streaming-only platforms such as Roku, Netflix, Disney+, Hulu, Amazon Fire TV, Apple TV, and others. CTV advertising is a powerful tool for reaching audiences on the biggest screens in the home, and it offers a range of performance metrics that can be used to measure the success of campaigns. CTV ads can be targeted to specific audiences based on their interests, demographics, and behaviours, and they can be used to reach viewers across multiple devices. CTV advertising is a great way to reach a large audience and maximise the impact of your marketing campaigns.
What are the benefits of connected TV advertising?
The main benefit of CTV advertising is its ability to reach a large, relevant audience in a highly measurable and efficient way. CTV ads are seen by millions of viewers, and they can be tailored to target specific interests and not just demographics. This allows marketers to reach the right people with the right message at the right time in ways that are impossible with traditional linear advertising.
Today, connected TV (CTV) advertising is critical to any marketing strategy. It allows brands to reach their target audiences on the internet through smart TVs and streaming devices, from mobile phones to gaming devices. In addition, CTV advertising offers a range of benefits, including:
Brand and performance
CTV advertising offers excellent brand awareness metrics, opening up new, relevant audiences whilst also allowing brands to measure the conversion success of their campaigns as they would any other digital campaign. This data can be used in real-time to optimise campaigns for better results.
Reach and attention
CTV advertising can reach a wide range of audiences, from traditional TV viewers to cord-cutters and streamers. This makes it an effective way to reach a variety of audiences. Connected TV delivers to the big screen, in those ‘lean-back’ high attention, cinematic viewing moments at home - but also to the millions of devices now being watched on the go.
Digitally enabled
CTV advertising can be bought programmatically, allowing brands to target specific audiences with greater accuracy. You only pay for the audience you’ve set out to deliver against rather than being ‘lumped in’ with mass audiences, not all of whom are interested.
Cost
CTV advertising is generally more cost effective than traditional TV advertising, allowing brands to get more bang for their buck.
Finally, CTV advertising is a great way to reach audiences on the go. With on-demand or OTT (over-the-top) streaming, marketers can target viewers watching content on their mobile devices. This allows marketers to reach people who may not be watching traditional TV, and it can be a great way to reach wider audiences, most of whom no longer adopt any linear TV viewing habits.
Connected TV (CTV) at a glance
- Connected TV (CTV) advertising is a form of digital advertising that is delivered through internet-connected TVs, such as smart TVs, streaming devices, and gaming consoles, delivered digitally to on-demand services from ITV Hub, Channel 4 On-Demand, Hulu, Roku, Netflix, Amazon Prime and many more.
- It is also called “Attributable TV”. It refers to “OTT” or Over-The-Top streaming services - which simply means services that stream directly to you, such as Netflix, Disney+, and Amazon Prime, rather than ones that are delivered via cable, antennae, or satellite, such as ITV, C4 and Sky.
- CTV advertising allows marketers to reach their target audiences more precisely and accurately than traditional TV advertising - and all the data is as attributable as any other digital media.
- CTV advertising garners more attention, as audiences are in ‘lean back’ viewing mode on the big screen, and the ads themselves are unskippable.
- CTV advertising is often purchased through programmatic DSP (digital service provider) platforms, which use data to target specific audiences and optimise performance.
- CTV advertising offers a variety of benefits, including increased reach, better targeting, and improved performance.
- CTV advertising is more cost-effective than traditional TV advertising, as it allows marketers to target specific audiences and optimise their campaigns for better performance.
- CTV advertising can target specific audiences based on their interests, demographics, and behaviours.
- CTV advertising can reach audiences across multiple devices, including smart TVs, streaming devices, and gaming consoles.
- CTV advertising can measure and track performance, allowing marketers to adjust their campaigns in real-time to optimise performance. It also allows marketers to use data-driven insights to create more effective campaigns.
The rise of connected TV
Streaming viewing has skyrocketed in recent years due to two major forces. Here's an analysis we presented back in 2020. First, streaming services have invested heavily in new content, resulting in a streaming arms race as companies like Disney +, Netflix, Apple and Amazon fight for viewership. Second is the rapid increase in streaming consumption implemented by global lockdowns brought about by the pandemic. This has substantiated streaming's preeminence over traditional big-screen viewing and established streaming as an increasingly important cultural force.
The rise of connected TV advertising has been driven by the growth of internet-connected smart TVs, which now account for over half of all TV households. This has made CTV an attractive option for marketers, as it provides access to a large and engaged audience and the ability to target audiences with greater precision. Additionally, CTV advertising allows marketers to measure performance and optimise campaigns in real-time.
How does connected TV advertising work?
Connected TV (CTV) advertising refers to the delivery of targeted and interactive ads to viewers through their internet-connected television or streaming device. From a technical standpoint, CTV advertising relies on software platforms and protocols to deliver and track ads. When a viewer streams content on their CTV device, the streaming service sends a request to an ad server to serve an ad. The ad server then selects an ad to serve based on the viewer's demographics and interests, as well as the availability of inventory. The chosen ad is then streamed to the viewer's CTV device and played during their watching content. Unlike traditional linear TV, two people watching the same TV show will receive entirely different advertisements based on their interests and preferences rather than a generic demographic estimate. The ad server also tracks the delivery and performance of the ad, such as whether it was viewed and for how long. This information is used to optimise the targeting and delivery of future ads.
What are the challenges of connected TV advertising?
Connected TV (CTV) advertising has become increasingly popular in recent years, allowing marketers to reach larger and more targeted audiences than ever before. However, there are some challenges associated with CTV advertising that marketers should be aware of.
One of the biggest challenges of CTV advertising is the complexity of the technology. CTV advertising requires the use of programmatic advertising, which is a complex process that involves multiple steps, such as targeting, bidding, and optimisation. This can be difficult for marketers to understand and manage, especially if they need to become more familiar with the technology.
Another challenge of CTV advertising is that, unlike other forms of digital advertising, CTV advertising does not provide marketers with click-through rates or cost-per-click data. Instead, CTV advertising is designed to create brand awareness and affinity - and in a post-iOS14 world, attribution models need to be built and estimated to understand how investment in CTV works. However, attribution models are far simpler to make than traditional linear TV or other adsmart technologies used in the past.
Finally, CTV advertising is still relatively new, so there needs to be more standardisation across platforms. This means that marketers must be aware of the different formats and features available on each platform to ensure their campaigns are optimised for each platform.
How can advertisers effectively reach consumers through connected TV?
The distinction between traditional TV and connected TV is essential, as the shift away from broad demographic approximations brings a new level of interest-based targetting. This shift mirrors the advancement of digital advertising, raising the bar on user targeting to engage potential customers with relevant products and services more effectively. Furthermore, focusing on interest-based rather than demographic audiences makes the chance for a brand to be discovered by pertinent new audiences much higher. In the past, mass awareness all too often came at the direct expense of relevance, but interest-based targeting is better tailored and more efficient than ever before.
And Rising has been specialising in scaling brands with Connected TV for over 3 years, gathering important data and learning ahead of the curve. We hope this quick guide has been useful. If you'd like any further information don't hesitate to get in contact: riseup@andrising.com
