Rumors of TV's demise have been greatly exaggerated. While the way we consume content has evolved, television is as relevant as ever. Traditional cable may be declining, but Connected TV (CTV) is picking up the slack, gaining viewers and reshaping the advertising landscape. For businesses, this shift offers a golden opportunity to leverage the reach and emotional impact of TV, combined with the targeting and measurement capabilities of digital advertising.
Connected TV isn’t just the future of television; it’s the present. This blog will explore what Connected TV is, why it’s a powerful tool for advertisers, and how businesses can incorporate it into their marketing strategy.
What Is Connected TV?
Connected TV refers to TVs that are connected to the internet and can stream digital content at any time. This includes smart TVs as well as TVs connected via devices like Roku, Amazon Fire Stick, Apple TV, or gaming consoles. Unlike traditional cable or satellite, CTV allows viewers to watch what they want, when they want.
How Does CTV Relate to OTT?
You may have heard the term Over-the-Top (OTT) alongside CTV. While they’re closely related, they’re not the same. OTT delivers content through the internet to any device, including smartphones, tablets, and laptops. CTV, on the other hand, focuses on big-screen TVs, offering a more immersive experience for viewers. Platforms such as Hulu, Pluto TV, Peacock, and YouTube TV are popular places where both OTT and CTV ads are served.
The Appeal of CTV for Advertisers
Connected TV has become an advertiser’s dream by combining the best of digital targeting with the engaging format of television. Here’s why so many businesses are turning to CTV:
Precision Targeting
With Connected TV, advertisers can reach specific demographics, geographic areas, and even niche interests. Unlike traditional TV, where ads are broadcast to anyone watching, CTV uses data to serve ads only to relevant audiences. For example, a local business can target ads to households within a specific ZIP code, ensuring every dollar spent is impactful.
Higher Engagement
CTV ads are typically non-skippable, which means viewers watch them in their entirety. Combined with a "lean-back" viewing environment, where audiences are relaxed and distraction-free, CTV ensures higher engagement rates. Households spend an average of 43.5 hours a month streaming video, and U.S. consumers spend an average of $61 per month on video streaming services, offering advertisers ample opportunities to connect with viewers.
Better Measurement
Gone are the days of vague metrics like "viewer impressions" from traditional TV. CTV provides real-time data, including impressions, ad completion rates, and even actions taken after viewing (e.g., visiting your website). This transparency allows businesses to track their ROI and refine their campaigns with ease.
Cost-Effective Options
Traditional TV campaigns often require hefty budgets and long-term commitments. With CTV, businesses of all sizes can run campaigns tailored to their budget. Whether you’re a small local business or a growing enterprise, CTV enables you to make the most of your ad dollars.
CTV Meets Traditional Strengths
For years, marketers have loved TV for its ability to tell emotionally compelling stories using sight, sound, and motion. While digital ads bring precision targeting and interactivity, they often lack the emotional resonance of television. Connected TV provides the best of both worlds.
- Brand Awareness: CTV mirrors traditional TV’s ability to build brand recognition, but without the wasted impressions of broadcasting to uninterested viewers.
- Lead Generation: With actionable data, businesses can move beyond awareness and convert viewers into customers. For instance, retargeting ads can reach users who’ve already interacted with your brand online.
- Storytelling Power: The big-screen format allows for engaging storytelling that sticks with viewers long after they’ve watched your ad.
Why Businesses Shouldn’t Ignore CTV
The cultural shift away from traditional cable is undeniable. Cord-cutting, where households cancel cable in favor of streaming, is accelerating. According to a report by Nielson, 72.4% of the time that U.S. viewers spend with television is ad-supported, and streaming represents 42.4% of that viewing. Younger audiences, in particular, are skipping cable altogether, meaning CTV is the best way to reach Millennials and Gen Z.
Competitor Edge
If your competitors aren’t already on CTV, they will be soon. Letting them establish themselves first means missing out on valuable visibility. Getting into the CTV space early allows businesses to carve out space in an uncrowded, rapidly growing market.
Household Penetration
The average U.S. household now has 4.5 streaming subscriptions, highlighting the growing demand for on-demand content. Additionally, nearly 79% of households own at least one smart TV or device-enabled screen, making connected TV (CTV) one of the fastest-growing platforms for media consumption. CTV’s reach is truly unprecedented and continues to reshape how we engage with entertainment.
Adding CTV to Your Marketing Strategy
Connected TV works best as part of an integrated marketing mix. When combined with traditional radio or digital channels, CTV improves overall brand recall, amplifying your campaigns. Here’s how to incorporate it effectively:
1. Start Small With Local Campaigns
CTV is perfect for small businesses looking to increase local visibility. Use audience targeting to focus on your surrounding geographic area and demographic.
2. Keep Creative Short and Punchy
CTV ads should be visually engaging and brief, ideally 15 to 30 seconds long. Leverage storytelling to captivate your audience and make your brand memorable.
3. Use It for Retargeting
Create retargeting campaigns based on your website’s visitors. If someone browses your product or service online, you can serve them ads on their TV to prompt a purchase.
4. Leverage Professional Help
While the concept of setting up CTV ads may seem intimidating, platforms like ours make the process seamless. From targeting to creative, professionals can guide you every step of the way.
Using CTV Ads to Write Your Own Success Story
TV isn’t dead; it’s evolving. Connected TV has redefined the format, making it smarter, more engaging, and more precisely targeted than its traditional predecessor. Whether you’re a small local business or an international brand, there’s a place for you in the Connected TV space.
With viewers flocking to streaming platforms and competitors already running ads, the time to act is now. Leverage the emotional storytelling power of TV, combined with the precision data of digital marketing, to reach your ideal audience.
Looking to integrate CTV advertising with your media strategy? Contact Zimmer to learn how to get started today.
