Comprehensive Guide to Connected TV (CTV)
Reach Your Target Audience with Connected TV (CTV)
There is no hiding the fact that, in recent years, there has been a significant shift in the way people consume television content. So long are the days of planning your week and evenings around the shows you plan to watch at their scheduled air time, or simply be limited to what is airing when you have the time to sit down and watch TV. If today's society and TV content landscape has taught us anything, it's that we live in a fast-paced, on-demand world.
Not only has this societal shift altered the way people enjoy TV content substantially, but it has changed the landscape for TV advertisers as well. That is why this comprehensive guide will tell you everything you need to know to connect your business with Connected TV and why it's an advantageous way to advertise to today’s on-demand society.
1. What is Connected TV (CTV)?
CTV works by merging digital video and traditional television. CTV consists of any type of TV that can be connected to the internet and can stream digital video at the viewer’s convenience. This includes smart TVs and TVs connected to the internet via devices such as Roku, Google Chromecast, Amazon Fire Sticks, various gaming consoles, etc.
Along the same vein, CTV advertising consists of video ads that play during professionally produced, premium content to a highly targeted audience. The best example of this can be seen through ads that are run during content streamed through platforms like Sling TV, Pluto, Hulu, ESPN+, and more.
- CTV viewers are watching an average of three hours of programming per day. That’s 45 days a year! (SpotX)
- The median age of CTV viewers in the US is 45. CTV is typically thought of as a way to reach young audiences but the reality is that all age groups are watching CTV at scale. (SpotX)
- Users who pay for traditional TV and have streaming TV say they spend nearly 70% of their TV viewing time watching streaming. (Forbes)
- In 2022, eMarketer estimates that the number of connected TV users will rise to 204 million, which will represent about 60% of the population.
2. Linear vs. Connected TV: What's the Difference?
Limitations in technology made linear TV, or traditional TV, viewing the default choice for most people through the majority of the 20th century. People sat down at a particular time to watch the shows they enjoyed. If they missed an episode, they had to wait for the network to rerun the program. Eventually, DVR technology improved upon traditional TV's limitations, allowing viewers to bypass ads entirely and view shows at their convenience through recording. Because of this, marketers had to come up with more creative ways to market to consumers.
As television consumption methods continued to evolve, Connected TV started shifting the tide back toward advertisers. Many people use CTV to access programs aired through their favorite streaming service. While some premium subscriptions are entirely ad-free, there are still many ad-supported free or lower-priced services that require ads to run when streaming. Connected TV helps advertisers re-establish their brand in the minds of consumers who have left traditional TV viewing behind.
3. What is OTT?
You may have also heard of ‘Over the Top’ advertising, or OTT. This form of video advertising is somewhat similar to Connected TV, but it is important to know the difference. OTT also serves video ads during premium streaming content, but the ads are served to users on any connected device including mobile phones and tablets. CTV advertising serves ads to users watching content on a traditional TV or ‘big screen’ only.
4. Streaming Services for CTV Ad Placement
In our streaming society, not only is the entertainment industry saturated with a wide variety of top-quality shows but there are a wide variety of streaming platforms as well. We can all name our favorite, most used streaming platforms that we have deemed necessary enough to put a monthly subscription towards. So, as a CTV advertiser, it only makes sense that you will want to place your ads on streaming platforms where your target audience is spending the most time. Below are some examples of popular streaming platforms that can be used to reach your target audience through CTV advertisements.
- Hulu: This popular streaming service features a wide range of shows and movie channel options. Placing your CTV ads on Hulu ensures you will get your message or ad in front of a substantial audience. As of Q4 of 2021, Hulu had garnered a total of 43.8 paid subscribers.
- Sling: Advertised as “the best of cable,” subscriptions to Sling include 30 top channels. Sling TV reported about 2.56 million subscribers in the United States alone for Q3 of 2021.
- Pluto: This amazing service provides access to 1000s of on-demand movies that are free to watch at any time. Viewers can also access 100s of free TV channels. Not surprisingly, this is a popular service, with over 28.4 million monthly users as of January 2021.
- ESPN+: Through this platform, consumers can stream live sports along with ESPN originals with ESPN+ for only $5.99 a month. You can even combine ESPN+ with Disney+ and Hulu as a package deal for a slightly higher price. As of Q4 of 2021, ESPN+ had a total of 17 million subscribers.
5. What Your Business Can Expect from Connected TV
- Audience Targeting: Through CTV, marketers have the option to target a specific audience based on location, demographics, and audience interests. No more guessing what your customers might be watching!
- High Ad Completion Rates: CTV ads are non-skippable. On average, advertisers can expect completion rates of 95% to 98% on CTV. In addition, there are fewer ads during desired content, so viewers typically engage with the relevant ads they do see.
- Measurable Results: CTV is easier to measure and precisely analyze compared to traditional TV advertising. Advertisers are able to get real-time reporting on how many users in your target audience have viewed your ad.
6. Reasons to Love CTV
Why Consumers Love CTV
Viewers greatly benefit from Connected TV services thanks to the unique viewing experience it provides. They can watch what they want, when they want. CTV is experiencing exponential growth and is expected to increase up to 82% by 2023. Although it hasn’t happened yet, it isn’t beyond reason to expect CTV to eventually exceed other TV viewing methods, including traditional cable.
Why Advertisers Love CTV
There are many benefits of CTV to you as an advertiser. So, we'll list them out below!
- Precise and Specialized Targeting: CTV helps you as an advertiser reach viewers that you would normally not access via linear TV watching. Consequently, you can more specifically market to your target audience and their preferences.
- Cost-Effective: Because CTV advertising is highly-targeted, you will be able to narrow in your focus on specific people you want to reach. This means you get more bang for your buck! You will actually save money by not creating ads that will be wasted on people who aren’t interested in what you have to offer.
- Quick Adjustments: CTV allows you to measure who's engaging with CTV ads in real-time, where they are when they view your ads, and what services they use to view them. That allows you to make quick adjustments in your marketing strategy that can help increase your conversion rate.
7. Is Connected TV (CTV) Right for My Business?
Viewers of all ages and demographics are turning to digital options and on-demand watching. The number of households that already own a CTV device is continuing to increase at an astounding pace. So when it comes to building out your business's marketing plan, CTV is often an easy, no-brainer add-on to increase your reach to potential customers.
And the truth is, Connected TV is a great fit for a variety of different businesses. This being said, every business owner should have peace of mind before deciding to incorporate this product and should have answers to their questions. That is why we provided answers to some of these more common questions in the video below:
8. CTV Gets Results
At Zimmer, we do things differently. Through our various digital marketing products, like CTV advertising, we offer transparent, advanced reporting metrics in a custom-built dashboard. We use this information to optimize your ad campaigns and achieve your ROI goals.
Unfortunately, many digital providers do not offer their clients access to these kinds of reporting metrics. If your current digital provider is not willing to provide transparent tracking, this is a red flag! We believe your business should always know the value of your media spend. And we have had enough experience creating, running, and reporting on clients' CTV ad campaigns to know what works, and what doesn't work. We would love to meet with you to see how your business can take advantage of all that Connected TV has to offer in order to meet your business's goals and objectives!
