Connected TV Advertising - Temporary Crush or The New Etalon?
There are dozens of different advertising channels available today.
12:03 02 September 2020
The most popular are mobile, display and, sure thing, advertising on traditional TV. As to the latter one, it’s facing more and more cord-cutters who are shifting to the next-level television — connected TV. CTV is gaining momentum by leaps and bounds, expanding its audience and consequently becoming more attractive for advertisers. So what does it have to offer them?
What’s the power of CTV?
Each advertising channel has its own advantages and pitfalls. As a relatively young one, CTV embraces all the latest, and thus, most efficient technological capabilities. It has inherited a programmatic approach, which ensures a wide reach and precise targeting capabilities for advertisers.
For viewers, digital television is the on-the-go way to consume video content as it allows to choose what content to watch, while cable TV limits them with shortlisted shows and series and that can be viewed at a certain time only. For advertisers, it’s a perfect option to reach the coveted age groups— Millennials and Centennials. Also, programmatic algorithms allow brands to deliver a concrete impression to a concrete user that is likely to be high-converted as the algorithm considers users’ interests. As a result, it brings cost-efficiency to the table.
Yet, app owners and CTV & OTTpublishers benefit here too. Digital television helps to monetize their video content and to generate ultimately high revenue. Also, it’s crucial not only what to show to your audience but how to as well. With today’s interactive creative libraries that some tech vendors support, brands can engage viewers like never before. For instance, QR ads work perfectly to:
- Redirect prospects to website
- Generate leads with form submissions
- Drive the number of followers and likes on social media
- Increase app installations
- Receive online payments.
There are also tremor ad formats (for OTT), in-stream and pause ads, and who knows what else will be there in the future.
Is CTV Here to Stay?
The answer is definitely yes. Since nationwide TV is extremely expensive, and only giant brands can afford it, small and medium advertisers are entering CTV in a snowball manner. However, premium brands are also on digital TV screens. People value their time, and CTV makes it possible to consume desirable video content in a couple-clicks distance.
What’s especially important in the crisis period, CTV offers an AVoD model, so people can save their family budgets. And as they are choosing the content to watch independently, ads have a non-intrusive perception. At this point, it’s quite natural that more and more people are moving from cable to digital television. So, yes, CTV is here to stay.
To Wrap Up
CTV is attracting extensive audiences (of the Y and Z gens) at full speed. Digital TV offers better targeting capabilities, engaging creatives for a way lower prices traditional TV does. A lot of all-sized advertisers have already entered this channel to promote their products and services, and eventually, this pool will be expanding.