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Before smart TV was not a thing, people used to have cable TV in their houses. They used to show the advertisement on that also, but since the smart TV has been introduced, CTV Advertising has grown immensely. Almost every household has installed a smart TV in their house. So let’s just get into the topic and understand what CTV advertising is and how it works.
1. Understanding the Basics and Beyond
CTV Advertising, also called Connected TV Advertising, helps businesses to reach their target audience by showing their ads on CTV devices like smart TV and streaming platforms.
Instead of those boring cable TV ads, CTV ads are not boring and are much more creative in their way. These ads are delivered over the internet, while you are using an internet connection to stream any video content. Plus point about them is they are entertaining, unlike those commercial cable TV ads.
The most coolest and interesting thing about Connected TV advertising is that it allows businesses to market their product or service to a specific audience. To do that, they use data and audience segments to make sure that the advertisement is reaching the right person.
This targeted approach makes sure that the money you are spending on running your ads on CTV is easily recoverable and gives more profit to the business. Plus these ads blend in with the content you are watching on your TV or your smartphone, unlike those ads we used to see without any interest in them.
2. How Does Connected TV Advertising Work?
We all have wondered how relevant ads that match our interests magically just pop up on our smart TVs or when we are watching something on streaming platforms like Roku, Netflix, or Apple TV. Let’s explain the process so we understand how those personalized ads are just magically shown to the Screen.
2.1. How Are Connected TV Ads Shown?
While you are watching your favorite show or a movie, suddenly, out of nowhere a CTV ad pops up on your screen and sometimes it interrupts our excitement like the traditional TV commercial ads used to do.
However, these CTV ads are a little bit different and creative also.
These ads are personalized to our preferences and the content we watch. They aim to show relevant and engaging ads for the viewers so we just don’t get irritated by them.
2.2. How Do CTV Advertisers Target the Right Audience?
Now you are wondering how these advertisers show ads that look so relevant to us. Now, the secret behind this is that advertisers can identify their specific audience based on different factors like demographics, interests, and the behaviour of the person when the ad is shown on their screen. So they act according to connected TV audiences targeted
By analyzing this user data and behaviour, advertisers gain insight into the preferences and habits of the audience.
Then they use this valuable information of the viewers to deliver ads to their desired audience that are more likely to resonate with the person who is viewing the ad, this makes the ad efficient and cost-effective.
2.3. Addressable TV Advertising Make Personalized Ads for You
There is a term in Connected TV Advertising called addressable TV advertising which is a very important aspect of this. This is like marketing. This sophisticated targeting technique allows the advertisers to focus on the specific households and even for individual viewers, tailor their audience to the right ads according to their unique preferences.
So if you and your friends are watching the same show or movie you both might see different ads that align with your interests and needs. You could say that the ad shown on your screen has just been made for you!
2.4. The Role of Interacting Ads in Connected TV Advertising
Interactive ads, now you are thinking what it is. Well, it is another element in CTV advertising that makes these advertisements more entertaining. These ads allow you to engage with the content provided such as clicking a link, taking quizzes that match your interest, and many more.
This interesting and interactive element creates a more hypnotic experience for the viewer which leads to higher engagement rates for advertisers. Because it encourages viewers to actively participate in the advertisement and quizzes similar to that.
2.5. In-Stream Video Ads Seamlessly Integrate the Advertisers
Those ads you see while watching your show or movie, are called In-Stream Video Ads. This is the most common type of ads in Connected TV ads. These ads have been seamlessly integrated into the streaming content, more like traditional TV commercials.
They might irritate us sometimes but we have to admit, that when the product or show is displayed on our screen we think about it once. Sometimes we ended up buying or watching it.
However, in-stream video ads’ lengths are typically shorter to maintain a positive user experience and stop viewers from feeling irritated by advertising interruptions.
2.6. Tracking and Measuring Performance in Modern Television Advertising
Just like other forms of digital advertising programs, CTV advertising also allows advertisers to maintain a track and measure its success.
As an advertiser a company or an individual can analyze things such as the completion rate (how many viewers have watched the entire ad), click-on rate (how many viewers have interacted with the link given in the ad), and overall return on investment which is also called ROI.
This data-driven approach helps advertisers fine-tune their CTV campaigns so that they make informed marketing strategies according to that.
3. Types of Connected TV Devices
The way we are consuming content is significantly evolving because of this. We are spending so much time consuming content online, hence connected TV Devices’ popularity has been increasing day by day.
It is offering us a wide range of options for us to access streaming services, video content, and even advertising. In the market, there are various types of connected devices available and you can pick any of them your choice and budget.
Let’s explore some of them and know how they revolutionized the way we used to watch television.
3.1. Smart TVs
Smart TVs are undoubtedly the most popular and well-known connected TV devices. The fat box which we used to call television before 2000’s has evolved so much and become so thin and advanced.
It’s not just a TV right now, it is our phone with a big and wide display. These smart TVs are connected TVs with internet connectivity and pre-installed apps for streaming services like Netflix, Hulu, Sony Liv, and even YouTube.
Smart TVs give users direct access to a wide range of content the moment they connect their TV to the internet and without any need for external devices.
3.2. Streaming Devices
You didn’t buy a smart TV yet? Don’t worry, this device can turn your non-smart TV into a smart TV and provide you with every feature that a smart TV has.
Streaming devices like Roku, Amazon Fire TV, and Google Chromecast, are compact devices that simply connect with your TV’s HDMI port and provide you access to various types of streaming services.
So if you have an old non-smart TV you buy one of these devices and can enjoy the taste of a smart TV just by connecting to an internet connection.
3.3. Gaming Consoles
People who have PlayStation or Xbox will know that these also serve as connected TV devices. So you get entertained by double if you buy one of these. Gaming plus streaming services. This is a two-in-one offer.
Before buying any of these do research on what streaming services they are offering and buy only the one you like the most.
3.4. Cable or Satellite Subscription Boxes
When these streaming services came, traditional cable services were losing their place in the market. So providers of these services decided to launch their subscriptions which they called, set-up boxes.
They connect the TV to the internet and allow the users to access their favourite content and streaming services.
Set-up boxes like Apple TV and Nvidia Shield are two of the top set-up boxes which offer the best services according to the user’s feedback
3.5. Mobile Phones
Yes, as you know you can access a lot of streaming services from just your mobile phone. Many streaming services offer mobile apps, which allow you to watch content on your mobile phone, which is so portable.
But as you know a mobile phone device’s screen is small and you might not feel that much excitement that you can feel on a big screen like TVs. Still, if you wanna watch shows or movies you can access them from your mobile.
4. Future of CTV Ads
As you know CTV advertising has always Been a growing industry since this was introduced to the world. Which makes us curious about what CTV advertising’s future would look like.
Well, for now, we can say that it will continuously grow as the previous years or maybe even more than that. So let’s just get into this topic and talk about how CTV advertising will shape the future of marketing.
4.1. The Rise of CTV Advertising
In recent years, CTV advertising has gained immense popularity. As we know, if something is growing this much it will have something good which is helping the world and business to reach new levels.
Almost everyone has ditched the previous cable TV connections and switched to smart TVs and streaming their favourite content whenever they want.
Advertisers noticed that they are shifting to CTV advertising from commercial cable TV ads. And researchers say that it will immensely grow even more than this is growing now.
4.2. Reaching New Audiences in New and Different Ways
One of the best things about CTV advertising is it offers a more personalized and targeted approach than any other advertisement service.
Unlike those cable TV advertisements advertisers have no control but to show their ads to a wide audience in which half of the audience were not even interested in the ad. Even more of the people used to get irritated by them.
CTV advertising has changed that approach because it allows advertisers to focus on their actual audience by giving them the data and response of the viewers on their ads. CTV advertising has become an 8X scope for advertisers to shoot their right audience with a clear shot!
4.3. Viewers Converting into the Customers
One of the main reasons CTV advertising has grown and will continue growing is that it has more potential to convert a viewer into a customer than any other advertising service.
This example I’m giving will help you understand it. Suppose you wanna buy a watch and you are watching a show or movie you like and it shows an ad for a watch.
Now you’ll click on the link and will try to know more about that watch, and then CTV Advertising will play its role. It will start showing you more and more ads about watches and there’s a high chance that you’ll buy a watch from that advertisement. Hence, it will help the advertising grow.
4.4. CTV Advertising v/s Traditional Advertising
Now you’ll be wondering how I can compare CTV advertising with traditional TV commercial ads, well, I’m not. Traditional TV Advertising is like a double bed blanket for an individual person, which means there’s a lot of wasting of time and money.
There’s no chance traditional advertising will be able to make its place once again. But what those companies can do is evolve and try to find their ways in new connected TV Advertising.
This might be late for them but as a wise man said ‘it’s better to be late than never doing it’. Many companies have already done that but if you are starting today, best of luck to you!
4.5. The Role of Streaming Services and OTT Advertising
If it weren’t for the streaming services and OTT platforms, CTV advertising wouldn’t be here where it is right now. Streaming services like Apple TV, Pluto TV, Amazon Prime Video and many other platforms have contributed to this significant growth of CTV advertising. Many small OTT platforms have a huge contribution to this. All of these services offer ad-supported video content that provides advertisers with an excellent platform to showcase their products and services. As a result, they grow so immensely that now there’s no going back for them.
4.6. The Influence of Mobile Devices and Gaming Consoles
As you all know CTV advertising is not just limited to smart TVs. They didn’t limit themselves and extended their reach to mobile phones also which is giving them a wider audience.
Which makes it so accessible to everyone and not just limited to one area. Some people can’t afford to have a smart TV but everyone has a smartphone these days.
This allows the advertisers to connect with a wider audience across various screens seamlessly and grow their businesses.
4.7. More Challenges on the Road Ahead
Nothing comes to you without facing any challenges. Same happening with these CTV advertisements. As they are growing in immense popularity around the world, there’s more competition day by day.
To prevent that, advertisers have to come up with innovative and attention-grabbing content and ads to stand out from the crowd. However, they will have to do it if they wanna stay in the ring if they wanna win. Some of them started updating themselves.
Having said that, there’s no doubt that technology has always been a growing aspect of this world, hence CTV advertising will undoubtedly grow and will evolve in new ways.
5. How Can You Run Your Ads on CTV Advertising?
After knowing so many benefits of this you might be thinking about how you can run your business ad on the CTV advertising. Well, we will cover that also. Here are some steps you’ll need to follow for that:
Choose the Right CTV Advertising Platform for Your Business
The first step you’ll need to take is to choose the right platform for your advertisement. While choosing an advertising platform keep in mind your goals and budget you have.
5.1. Create Compelling Video Ads
Create engaging video advertisements that capture the attention of your desired viewer in no time. Keep your ad short, informative, and visually appealing to the viewer’s interest.
5.2. Select the Target Audience
First, show your ad to a wide range of viewers then reduce it by following the demographics, interests, or behavior, it will ensure that your ad is reaching the right person.
5.3. Set And Spend and Budget
Look into your ad spending budget for the CTV campaign you are going to conduct. You can choose between cost per completed view (CPCV).
5.4. Launch Your CTV Ad Campaign
Once your ad is ready, launch your CTV campaign on the platform you select in the first place.
5.5. Analyze Results
Now once your ad is running on the platform, analyze the results to understand effectiveness. Pay close attention to metrics such as video compilation rate and the impact on your targeting audience behavior.
These are the steps you’ll need to follow if you wanna run your ads on Connected TV advertising.
Final Words
In conclusion, we talked about everything about CTV advertising, from What CTV advertising means to how you can run your ads on it, everything. It’s a fast-growing industry and if you wanna grow your business you can do it by running your ads on these platforms.
However, you’ll need to keep so many things in you before doing that. But as well, we know it’s a win-win for everyone because you’ll only have to pay when the viewer completely watches your ad. Unlike those commercial cable TV ads we used to watch while we were kids.
No doubt CTV advertising will grow immensely in the future and even will evolve. So if you are willing to run your ads you can follow the instructions mentioned above and grow your business!
Frequently Asked Questions
Q1. Who is the leader of CTV Advertising?
According to the tables, Hulu is the first-ranked CTV ad seller in the United States. Hulu is owned by Disney charts say that it has the largest amount of audience. It’s not like other CTV companies are not making business but Hulu has another level of audience. to CTV Ads. If you wanna know about them you can click here.
Q2. How much I’ll have to pay if I want to advertise on CTV?
Well, it depends on many different aspects. Different streaming platforms have different costs for running your ads on their platform. However, the average cost of running your ad for 15 seconds on any platform can go from 5 dollars to 25 dollars. It’s recommended you better do your research before you approach any company to run your ads.
Last Updated on by Sanjana
