Today, the Internet is the main informational environment – we follow the news, watch films and educational materials online. A TV set seems to be a thing from a distant past. With the widespread of smart devices like laptops, tablets, and smartphones, television ratings inevitably go down. With the TV decay, the chances TV ads reach a vast audience plummer. So does the ad revenue. The tendency doesn’t give TV any chances – it is hard to imagine that people will switch from comfortable and ever-developing devices to an old and less flexible one. The last opportunity for TV to survive is through partnerships with OTT channels, like Hulu or Netflix.
Connected TV is the freshest innovation for video advertising. It doesn’t nail users’ attention to a particular device but works perfectly with Smart TV, smartphones, and even gaming consoles. Do you have any of these devices? Of course, you do. And this is the key – CTV already has an incredible market infusion. Millions of eyes have their attention slicked on the screens, and you don’t have to fight for it – just bring out your ad. However, there are more reasons why CTV is the future of advertising. Let’s discuss them.
The Key Benefits of CTV Advertising
More and more publishers and brands find the CTV ad monetization platform an excellent option for their businesses. Those that have already tried this method of reaching out to the right audience will agree that it does make sense. The reasons are the following:
CTV ads are not annoying
CTV advertisement allows marketers to deliver appealing and relevant messages to viewers. First of all, CTV enables high levels of personalization: the apps gather users’ information that sheds light on their preferences, demographic data, and the devices in use. Even when people share the same offline spot, be it an apartment or an office, CTV allows marketers to track a particular user’s previous choices and data. This means that each of the family members will see different ad content on his/her device. For instance, if you have been searching for eco-products recently, you will get a relevant CTV ad with an opportunity to make an instant purchase. Second, CTV is implemented in the online video content delivered by AVOD services. People tolerate ads in order to get free access to their favorite movies and shows.
Youngsters prefer CTV
Video monetization platforms that provide opportunities for CTV campaigns become more and more popular because they allow marketers to reach a large segment of active audiences – young people. Millennials prefer streaming content over traditional television and don’t see any reasons to have a pay-TV at home. They were born in the era of Netflix, YouTube, and Amazon, that is why CTV ads seem natural to them. Such a concentration of target audience makes CTV a truly appealing ad channel for brands.
CTV ads are shorter than TV equivalents
Short ad breaks keep users on their seats until the ads are over. Viewers prefer to stay in front of the screen and rarely stand up to make a cup of tea or a sandwich – they don’t want to miss their favorite show. In addition to that, online ads are unskippable, which increases completion rates.
When you implement CTV technology into your marketing campaign, you keep the connection with your buyers. In case they watch your ad till the end, follow-up messages will be sent to them. This way, you will remind them about your brand and provide more relevant offers that may whet consumers’ appetite. As a result, they will come back for more products, and your conversion rate will increase.
Simple results tracking
There are no result tracking mechanisms for traditional TV ads, which means that you cannot estimate the efficiency of your campaign. On the contrary, CTV technology offers crucial tools for performance measurement. For example, you can find out who exactly watched your ad and which device he/she used to make an online purchase. In addition, Google Analytics allows marketers to estimate the compliance of their CTV ads with other campaign elements. TheViewPoint and other similar platforms provide numerous instruments for fast and efficient tracking.
Predictions on OTT and CTV Campaigns
Recent research of Winterberry Group, the consulting company that specializes in marketing and information technology trends, claims that spending on addressable TV and OTT will see a 44% boost in 2023, while linear TV will barely witness a 1.9% increase. Experts suggest that digital advertising spend will increase by 14.5% and reach $166.4 billion. CTV, OTT, and streaming ad spend are expected to grow from more than 30%.
Many professionals predict that CTV will become the primary visual impression of the next years. The number of households with access to a connected to increase up to 82% by 2023. Marketers that strive to ad monetization choose this technology to maximize reach and engage the audience that is not available on traditional TV. They find it easier to plan, buy, distribute, and measure their CTV campaigns.
There are no doubts that modern advertising and content delivery strive for personalization and relevance. With Connected TV, watching becomes interactive – people receive exactly what they want, get video on-demand, and make purchases right from their devices in real-time. They have control over the viewing process and make choices without pressure. With interactive ad campaigns, marketers receive customer data and statistics that are necessary for development and improvements. TV ads don’t provide such a high level of personalization and user data for analysis. More and more marketers explore CTV advertising, and the fantastic results, along with low costs, will surely encourage them to continue.
Today, the ad market is bubbling with new technologies and approaches to campaign management. CTV is such a trend just because it follows the right direction – it strives to deliver user-friendly, relevant, and quality advertising. All the benefits of CTV prove this technology to make advertising more meaningful, personalized, and efficient when it comes to audience reach. This is how the future of advertisement looks like. Only those marketers who aptly adapt to these changes will discover new opportunities for their business and reach success in the future.