You’re likely familiar with traditional television advertising, such as commercials during a football game broadcast or during the breaks of a sitcom. However, despite its seemingly strong prevalence, the time-honored method of marketing is slowly fading away as companies increasingly turn to connected TV to reach consumers more effectively.
Connected TV (CTV) refers to televisions that have access to the internet, such as smart TVs, and devices that physically connect to TVs and make use of streaming service apps, including the Roku and Amazon Fire Stick.
According to Statista, approximately 92% of U.S. consumers are accessible to advertisers through a connected TV. That’s more than a significant number, and companies should therefore implement connected TV advertising to better reach their audiences.
Here are a few benefits organizations can realize through CTV advertising in 2023:
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Reach Specific Audiences
Traditional commercial advertising methods offer few opportunities for directly targeting a specific audience. Aside from airing a commercial during a program that marketers have associated with their customers or doing so at a time when their demographics are most likely to be watching TV, there isn’t much else advertisers can do.
With CTV advertising, on the other hand, there are far more opportunities to target specific customers via streaming devices. In fact, companies can reach their audience through four strategies, which include behavioral, demographic, contextual, and time-of-day targeting.
For example, you can set parameters for your advertisements in order to show them to people with specific internet browsing habits or do so to connect with a particular demographic based on income or location. You can also set the ad to reach people at specific times of the day based on their typical viewing behavior.
Better ROI
Since you’re only targeting the people that are most likely to be interested in your products or services anyway, and not vast audiences of individuals with varying demographics and behaviors, you’ll see a higher ROI on your advertising spend.
With traditional commercial advertising, there are very few ways to successfully target your customer base. As a result, companies have spent lots of money showing commercials to people who might have little need for or interest in their products.
CTV advertising allows you to better target your audience base. If you set your parameters correctly and run an effective ad campaign, you’ll see a much higher return on your investment than with that of a traditional commercial.
Ads that Can’t Be Skipped
CTV advertisements are non-skippable, meaning customers can’t click on a button to fast-forward through your ad. They have to watch it, or at least let it play, so they can get back the show they’re watching.
Therefore, if your ad plays during a movie or television show they’re highly engaged in, viewers are more likely to pay attention to your advertisement. That’s excellent news for advertisers who want to see more engagement with their video ads.
To take advantage of your audience’s engagement, you’ll want to craft a video ad that captures their attention and provides a solution to a problem they might have or a product they’re likely to benefit from.
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CTV Is the New Kid on the Block
While other forms of digital marketing, including social media ads, pay-per-click ads, SEO, and content creation, have been around for a while, CTV advertising is a relatively new form of digital marketing that’s still in its early stages.
With that being said, companies seeking new ways to reach their customers should consider CTV marketing. According to recent connected TV statistics, total conversions from CTV ads rose by 49% in the fourth quarter of 2022, and user reaches expanded by nearly 70%.
Easy-to-Analyze Performance Data
CTV ad campaigns offer more significant opportunities for data analysis compared to traditional TV commercials, and with the right programmatic marketing software, you can track the number of viewers who saw your ad from beginning to end and how they chose to interact with it. You can also evaluate the audience that watched your video, allowing you to better target future audiences and obtain greater benefits.
CTV advertising also allows you to retarget your customers to build more substantial brand awareness over time. For example, suppose that you’ve developed an ad for a new sci-fi role-playing game. You might place that with sci-fi shows that your audience will likely watch and with consumers who stream using gaming devices like the Xbox.
Once you see the results from your initial campaign, you can retarget customers who watched the video with similar ads, encouraging them to purchase the game.
CTV Advertising Is Here to Stay
As more people “cut the cord,” giving up their traditional cable TV for streaming devices and apps, the market for CTV advertising continues to grow. Ensure your company stays ahead of competitors by integrating CTV advertising into your marketing strategies.