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CTV Advertising: The Best Way of Smart TV Advertising

Do you know that CTV ads have much higher engagement than traditional ones?

However, despite CTV advertising being one of the best ways of digital advertising (According to Statista), many advertisers are still not utilizing them the right way to get maximum conversions.

If you’re one of them who wants to leverage this trending platform, then you’re at the right place.

In this article, we will discuss everything you should know about Connected TV advertising & ways to leverage them to the fullest.

So, without further ado, let’s dive in!

What is Connected TV (CTV)?

A Connected TV (CTV) is a television with integrated internet that allows users to stream videos, play music, install apps, surf the internet, view photos, play games, watch live sports, TV shows & movies, etc., over smart TVs or digital apps.

It has revolutionized the viewer experience of watching TV by offering a wide variety of content and streaming services through internet-connected devices and the flexibility to watch their favorite shows and movies on demand rather than pre-scheduled.

Viewers can access digital content from multiple streaming services on a single device, making it easier to track their favorite shows and movies.

Connected TV Advertising

Evolution of TV Advertising

The first TV commercial was aired in 1941 by a watch company named Bulova, which generated positive responses from the audience, encouraging other companies to leap at the opportunity. But with the advancement in technology, old ways of advertising became obsolete whenever something new came into the picture.

Here’s an overview of how advertising evolved with time!

Linear TV Ads

Linear TV Advertising is the traditional approach of TV advertising where ads are broadcasted to the masses through cable, satellite or antenna without specifically targeting the audience.

People watching the same show in the same language would be shown the same ads without filtration.

Linear TV Advertising
Traditional TV Ads

Advantages of Linear TV Ads

  • Linear TV advertising is best for branding, displaying ads to a large audience without filtration.
  • They are suitable for brands dealing with the necessities of life that everyone, like toothbrushes, soaps, etc., uses.

Disadvantages of Linear TV Ads

  • This advertising approach is unsuitable for brands looking for a highly specific audience.
  • It offers limited data on ad performance, making it difficult for advertisers to track the success of their campaigns and make data-driven decisions.

Addressable TV Ads

People might have the same taste in TV shows or programs but different needs as a consumer. Addressable TV advertising method helps in identifying & targeting viewers based on their needs.

Addressable TV Advertising is a slightly advanced form of Linear TV advertising. It allows advertisers to target specific audiences based on their household data.

As opposed to linear TV ads, which broadcast the same ads to a broad audience, addressable TV ads can be used to deliver different ads to different households to deliver personalized ads to specific viewers using data & technology.

It gives advertisers better control over their advertising spend, as they can target specific groups more likely to be interested in their products or services.

Addressable TV Advertising
Addressable TV Ads Targeting Household Needs

Advantages of Addressable TV Ads

  • It offers a more personalized and tailored advertising experience for viewers, which can improve engagement and brand awareness.
  • By delivering ads to specific households or individuals, addressable TV advertising can help advertisers reduce wasted ad spend and increase their return on investment.

Disadvantages of Addressable TV Ads

  • Addressable TV advertising may not be as effective for reaching large audiences as it is designed for more targeted and precise advertising.
  • Using data to deliver personalized ads can raise privacy concerns among viewers, who may feel uncomfortable with collecting and using their personal information.
  • It may require specific technology and infrastructure to deliver ads to specific households or individuals, which could be a barrier for some advertisers.
  • Addressable TV advertising may be more expensive than traditional linear TV advertising, requiring more advanced data and technology to deliver ads to specific households or individuals.

OTT Ads

Then comes the highly advanced form of advertising, which delivers personalized ads based on various factors such as user behavior on the internet, preferences, tastes, browsing history, etc.

OTT Advertising (over-the-top ads) refers to delivering video ads on streaming apps such as Netflix, Amazon Prime, etc., through streaming devices such as computers, laptops, smartphones, connected TVs/smart TVs, gaming consoles, etc.

OTT Advertising
OTT Algorithm Understands User Preference

Advantages of OTT Ads

  • It allows advertisers to leverage real-time insights into campaigns & the flexibility to modify their campaigns based on the insights.
  • OTT Advertising offers highly personalized targeting, leading to increased conversion rates.
  • It offers measurable results, which facilitates advertisers to know more about their target audience & leverage micro-targeting.

Disadvantages of OTT Ads

  • Your target audience falls under a certain age group who haven’t yet subscribed to such streaming services.
  • Some OTT platforms do not provide as much data on ad performance as other digital advertising channels, making it more difficult to measure the success of campaigns.

CTV Ads

CTV Ads are more or less like OTT Ads, the only difference being the devices they encompass. While OTT ads can be delivered through various platforms like smartphones, laptops, and TVs, CTV ads are limited to smart TVs or internet-connected TVs.

Let’s delve deeper into connected TV advertising to get a clear picture.

What is CTV Advertising?

As CTV is gaining popularity, it is changing the TV landscape and creating new opportunities for viewers and advertisers.

While viewers can watch digital content at their convenience, advertisers can use CTV advertising to reach the target audience with personalized ads & take advantage of the interactive capabilities of CTV devices to engage viewers with their products and services.

Not only that, advertisers can reach viewers during their showtime, which means they cannot help but notice such ads.

Let’s demonstrate CTV ads with an example: 

CTV Advertising Example

You are engrossed in a web series & you notice the lead actress wearing a beautiful evening gown, wondering, “I wish I had that.” BAM! Here pops up the ad offering the same gown at a 60% discount.

Now, won’t you be lured to buy that?

Of course, you will be!

Incredible, isn’t it?

This ad was impeccable. It reached the target audience at the right time without being intrusive. Plus, it increases the probability of converting the target into a buyer.

What is Programmatic CTV Advertising?

Programmatic CTV

Programmatic CTV advertising refers to automating the process of CTV advertising, i.e.,

Exchanging digital ad space between publishers and advertisers via real-time bidding.

It uses algorithms and data to make real-time decisions on which ads to buy and how much to pay based on audience demographics, behavior, and intent. It analyzes the audience’s behavior to make the right decisions; like in the above reference of the evening gown, the algorithm identifies the right audience based on various factors, such as gender, taste & preference, previous behavior on the internet, etc.

Programmatic CTV determines the best shot for placing an ad & it also helps in analyzing real-time insights & modifying the ad copy accordingly to ensure the best result.

CTV Ad Formats

CTV ad formats refer to the different types of advertisements that can be delivered through streaming services on internet-connected televisions. Some common CTV ad formats include:

  • Pre-roll Ads: These are video ads that play before the viewer’s selected content.
  • Mid-roll Ads: These are video ads that play in the middle of the viewer’s content.
  • Post-roll Ads: These are video ads that play after the viewer’s selected content.
  • Overlay Ads: These ads appear on top of the viewer’s content, often as a banner or pop-up.
  • Sponsored Content: This is content created by an advertiser and integrated into the streaming service’s programming, often in a sponsored episode or series.
  • Interactive Ads: These ads allow the viewer to interact with them by clicking on a call-to-action or choosing between different options.
  • Display Ads are static or animated ads on the streaming service’s interface, such as on the home screen or in a menu.

Different streaming services may support different CTV ad formats, and advertisers may choose to use different formats depending on their campaign goals and target audience.

How to Buy Programmatic CTV Ads?

You can follow these steps to buy programmatic ads:

  • Choose a demand-side platform (DSP) that supports CTV advertising.
  • Set campaign goals and define the target audience, including demographic, geographic, and behavioral targeting parameters.
  • Choose CTV ad formats that fit the campaign goals, such as pre-roll, mid-roll, overlay ads, etc.
  • Select the streaming services or apps where the ads will be shown. It may involve targeting specific channels or shows or using contextual targeting to show ads based on the watched content.
  • Set the budget and bid strategy for the campaign, including setting a maximum bid for ad impressions or a budget cap for the overall campaign.
  • Create ad creatives, including video or display ads, and upload them to the platform.
  • Launch the campaign and monitor performance, adjusting the targeting, bidding, or creative as needed to optimize for campaign goals.

Buying programmatic CTV ads can be a complex process, and it may be helpful for advertisers to work with a media agency or CTV programmatic ad specialist to ensure they use the most effective strategies and tactics.

What are the Benefits of Connected TV Ads?

With a growing number of people switching to connected TV, CTV advertising is becoming the sure-shot way to reach the target audience, who are most likely to convert.

Let’s have a look at a few of the numerous benefits of Connected TV advertising:

Performance-Driven Advertising

Unlike traditional TV ads, which are generally used to build brand awareness, Connected TV Ads are performance-driven advertising like Google Ads, which precisely targets potential customers who are most likely to convert.

For Example, You asked Alexa to provide a list of the best air-conditioners & the same day, while watching a show on Amazon Prime, you saw an ad for an air conditioner.

Now, they didn’t target a random tv viewer who wouldn’t be interested in buying their product; instead, they targeted the right viewer who was most likely to be interested in their ad & eventually might get converted.

Non-skippable Ads

Non-skippable Ads ​

One of the innumerable benefits of CTV advertising is that viewers can’t skip ads while watching a show on demand, which makes it easier to convey the message to them.

Types of CTV Ads

  • Display Ads
  • Pop-ups
  • Interactive Ads
  • 4 Banner Ads

Granular Audience-Targeting

Granular Audience-Targeting​

Thanks to advanced technology, advertisers can now granularly target audiences based on various factors such as demographics, zip code, behavior, preferences, purchase history, etc.

It helps to deliver your ad to filtered lists, as opposed to broad targeting used in traditional tv ads, making it all the easier to generate leads. Thereby maximizing the ROI & lowering the cost by targeting only specific audiences.

Real-Time Insights

Advertisers can now get real-time insights into their campaigns & modify them whenever & however, they want. It allows more flexibility for advertisers to perform A/B testing for every metric of different campaigns.

For Example, you ran a campaign for a t-shirt, targeting buyers who have purchased similar products, but you observed that only 30% of them are getting converted. So you decide to promote a similar product but of a different color this time.

And guess what?

The conversion rate increased to 60%.

Now, isn’t this helpful?

Duh! Of Course, It Is!

Track Results Across Multi-Touch Ecosystems

Multiple Devices
Users Can Access Your Site From Multiple Devices

Traditional Advertisers often overlook that the modern customer journey involves multiple touchpoints across various channels. You can track your customer journey across a multi-touch ecosystem with CTV Ads.

For instance, your CTV ad might pursue a viewer to search about your product on a Search Engine & then land up on your site, but they might not buy that product instantly and instead add it to the cart for future reference. Maybe a month later, they purchase that product via a remarketing ad they saw on a platform.

So, in this case, you won’t need to worry a bit about losing sight of your customer anywhere during their journey; you’ll get every single detail about your customers throughout their journey from the top of the funnel to down to the conversion point when they finally decide to purchase.

Connected TV Audience Targeting

By now, you must’ve got a pretty good idea about how CTV advertising can help you to reach your target audience using granular audience targeting. But here’s a detailed version of how connected TV audience targeting works:

Zero Party Data

Zero-party data refers to information deliberately submitted by the audience to the company through surveys, polls, registration, newsletter sign-ups, etc. You can utilize this data directly without the fear of infringing their privacy.

First Party Data

First-party data refers to a company’s audience data collected through various means such as websites, CRM, social media platforms, applications, internal & external surveys, and offline data. You can leverage your data to reach the existing audience who have interacted with your brand.

For instance, you can use remarketing to reach users who added a product to their cart but abandoned the cart & ping them with an amazing offer on that product through CTV ads.

You can also target users who have purchased a particular product & offer similar or related products through upselling & cross-selling.

Third-Party data

CTV platforms come in handy with 3rd party data sources, allowing you to reach untapped audiences based on numerous attributes such as age, gender, religion, language, web history, occupation, income, marital status, interests, purchase history, etc.

You can also fetch 3rd party data from data vendors & tailor it as per your needs.

Geo-targeting

Geo-targeting allows you to target the CTV audience within a specific geographic radius, i.e., the audience. You can target local as well as international audiences based on your needs.

To sum up, you can target audiences based on numerous permutations & combinations. Like, you can target teenagers who live in Chicago, have an annual household income of more than $1,000,000, and have previously purchased a gaming console to promote a brand new gaming console.

Contextual Targeting

As the name suggests, “contextual targeting” matches the context of the ad campaign to that of the content the viewers consume. It identifies the audience watching shows directly or indirectly related to your ad campaign.

For instance, if you display an ad for a Yoga mat to an audience who are frequent viewers of shows related to Yoga & fitness, they are more likely to convert; thereby, you are matching the context of your campaign to that of your target audiences.

Cross-Device Targeting

It refers to targeting audiences across devices, be it laptop, desktop, mobile, tablet, or TV, to track their footprints across devices & be consistent with branding.

Behavioral Targeting

Through behavioral targeting, you can track your target viewers’ behavior throughout the web to offer personalized ads. It will help you to understand how your target audience would respond to your products & based on that, you can strategize a way to reach them with the right marketing.

You can segment your audience into different groups based on their behavior or actions, such as an abandoned cart, purchased a product, frequent visitors but not purchasers, frequent purchasers, etc. & based on their position in the sales funnel, deliver a personalized ad. Like, the category “frequent visitors but not purchasers” could be displayed discount offers while those who abandoned the cart could be served interactive CTV ads to understand the reason behind the abandonment.

FAQs

What does a CTV mean?

A CTV refers to a connected TV with an integrated internet inside & runs on the internet instead of a cable or satellite. It allows users to stream videos, play music, install apps, surf the internet, view photos, play games, watch live sports, TV shows & movies, etc., over smart TVs or digital apps.

Connected TV Ads vs. Addressable TV Ads

Connected TV (CTV) is a term used to describe televisions that are connected to the internet and can access digital content, such as streaming services, social media, and online video. CTV allows viewers to access a wide range of content on their television sets, much like on a computer or smartphone.

On the other hand, addressable TV is a type of TV advertising that allows advertisers to target specific households or individual viewers with tailored ads based on their demographic or behavioral data. It allows advertisers to deliver more personalized and relevant ads, leading to higher engagement & conversion rates.

While Connected TV and Addressable TV are not mutually exclusive, they are two concepts that can be used together in TV advertising campaigns. Advertisers can use Connected TV to reach a wider audience, while Addressable TV allows them to target specific households or individuals within that audience.

CTV vs. OTT

OTT & CTV are often used interchangeably; however, a fine line separates them. While OTT (Over-The-Top) refers to streaming video content over internet-connected devices, such as smartphones, laptops, smart TVs, etc., CTV (Connected TV) specifically refers to internet-connected TVs that stream content for the viewers.

CTV vs. Linear TV

A linear tv refers to the traditional tv connected through cable, satellite or antenna. In contrast, a Connected TV (CTV) is a television with integrated internet that allows users to stream videos, play music, install apps, surf the internet, view photos, play games, watch live sports, TV shows & movies, etc. over smart TVs or digital apps.

CTV Ads vs. DRTV Ads

A DRTV, also known as Direct Response Television, refers to TV ads that urge viewers to take a specific action, like visiting a website, calling a toll-free number, sending an SMS, etc. In contrast, CTV is more than that; it’s a highly personalized data-driven marketing that takes care of the whole consumer journey across internet-connected devices.

CTV vs. LTV

LTV (Lifetime Value) is the average revenue a customer generates throughout their lifespan for a company. It means that all the revenue generated through the CTV advertising efforts from an individual would be defined as LTV.

CTV vs. OLV

While CTV refers to an internet-connected TV that displays digital videos, OLV is an online video that can be displayed on any device & is not just limited to a TV.

Can you click through a CTV ad?

Yes, certain CTV ad formats offer clickability.

Is Netflix a CTV?

No, Netflix isn’t a CTV but a subscription-based OTT streaming service.

Can you skip ads on CTV?

No, you cannot completely skip CTV ads. However, certain options are available in some CTV devices to avoid them to a certain extent.

Why is CTV popular?

CTV is gaining popularity among viewers due to its video-on-demand service & convenience, which makes it easier for viewers to watch their favorite shows whenever they want.

And for advertisers, CTV offers the opportunity to engage users in their brand’s advertising without getting all freaked out.

Which are the best CTV advertising companies?

Well, no bragging, but we offer highly professional services in CTV programmatic ads & omni-channel advertising. You can reach us for your queries. We’ll clear all your doubts.

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