Consumers' TV desires and practices have shifted during the pandemic. People were less interested in cables and more invested in the network of over-the-top channels. As a result, the use of connected TVs — or CTVs — to stream OTT video has risen dramatically. In fact, eMarketer estimates that 213.7 million people use the internet at least monthly through CTV devices.
Unsurprisingly, CTV advertising has grown at one of the fastest rates of any digital marketing channel: at 40.6% year over year in 2020. And by 2025, the investment in CTV advertising platforms is predicted to reach more than $26 billion.
To get in front of a wider audience and make the most of your marketing campaigns, it's time to take advantage of the unique opportunity the CTV advertising market presents.
What Is Connected TV Advertising, and Why Does It Matter?
For advertisers, the move to CTV is an exciting one. The channel offers more targeted video advertising and a richer ad experience for users. With CTV, you know exactly who is seeing your ads and have more control over the audience you're targeting. And because people are browsing CTV in more personal, targeted ways themselves, the ads you show them have the potential to be more impressive, more emotive, and more memorable (read: more effective).
Many CTV advertising platforms also allow you to buy packaged ads, which can lower your advertising costs. Additionally, they distribute the ads through more powerful formats during the entire buyer journey, which can help you track the return on investment of your efforts more effectively.
As consumers continue to use CTV for their streaming needs, the CTV advertising market will grow in tandem. And because CTV ads offer a variety of ways to connect to viewers, you'll find that the addition of CTV in your marketing playbook transforms your entire business model.
How to Reap the Many Benefits of Connected TV Advertising
CTV advertising trends reflect the way consumers are watching and engaging with content. During the pandemic, they depended on intimate media — such as social media platforms and OTT streaming channels (think Netflix, Hulu, and HBO Max) — to help them get through the day.
These viewers are primed for your best advertising content (much more than linear TV viewers), but that's not the only major benefit of CTV advertising. Consider the following advantages of leveraging CTV ads:
1. Speaking directly into consumers' ears.
Traditional advertising depends on reaching audience members through big, loud messages spoken into a few main mouthpieces. But with CTV advertising platforms, you can reach people through an interwoven multiplicity of channels — all at the same moment. This means that you can appear to a consumer right when they're ready and willing to explore your product or service. They can find you on their chosen platform while watching a show that has been personally recommended to them, for example. This feeling of intimacy makes your ad's message sing that much louder.
2. Experiencing more bang for your buck.
OTT channels are viewed more often and more repetitively because people can stream and restream their favorite shows on demand and binge-watch content to their heart's desire. Not only that, but the targeted nature of CTV advertising also means that you don't have to "spray and pray" your budget away in the hopes of reaching a potential consumer; you can position your ads tactically and save your budget for making even more engaging, eye-catching content.
3. Getting more variety as you get more focused.
A higher level of targeting with CTV advertising means you can send hyperfocused messages and get closer to consumers that are relevant to your product, all while gaining a diversity of ad formats. This means you can experiment with how your ads appear to different users without risking your impact. Try interactive video ads, animated ads, or ads that tell choose-your-own-adventure stories across multiple channels. With CTV advertising, you can play around to find what works best.
4. Measuring everything, all the time.
Traditional linear TV advertising is not so easy to track. You have to set out with a campaign you think is awesome and see what comes back. But with CTV advertising, you can access real-time metrics that show whether you're on track to achieve your targets. This means you can be so much more goal-oriented, even as you're giving consumers a more organic and personal ad experience. You'll be able to continually optimize your ads and adjust your message as you obtain new data and discover more about your audience.
CTV advertising platforms can be a playground for advertisers. Use them to get closer to a generation of consumers that has been, and continues to be, shaped by pandemic viewing. Speak to these consumers in personal, targeted, exciting, and engaging ways, and they'll reward you with their precious attention — and business.
Don't fall behind competitors by not taking advantage of the most powerful marketing channel. Register for our free webinar to learn about the OTT trends you need to know to advertise effectively on CTV platforms.