With traditional TV seeing an increasing plummet, our advertising behavior has seen a paradigm shift. This shift is accelerated by the growth of CTV or Connected TV advertising.
The entire landscape of digital advertising is being taken over by CTV now – and that is largely because of the option of getting your commercials on the big screen without the large price tag, reaching cord-cutters and highly engaged viewers in no time!
Expanding on what we essentially mean by CTV – it is a kind of television that is connected to the internet and may be viewed via regular cable television. The Connected TV can stream OTT streaming services, internet browsing data, and internet apps.
These OTT or Over-The-Top platforms give marketers an edge in advertising and publishing their content. Moreover, there are more than 164 million U.S. consumers viewing video content via connected TV devices, and a forecast of up to 204.1 million viewers in 2022.
With CTV gaining mass appeal across the world, we can expect to see a complete digital renaissance in the coming years.
Keep reading below as we explore Connected TV advertising, various ad formats, benefits, its presence in the MENA market, the OTT platforms that enable CTV advertising, and most importantly – its future!
What Is Connected TV Advertising?
Delving into connected TV meaning, viz-a-viz advertising would simply mean exploring a form of advertising that is programmatically generated.
Advertisements for connected TV can be put on any TV or device that can be linked to the internet and access video streaming material beyond what is accessible through a cable provider’s standard offering. Additionally, ads purchased programmatically and displayed on consoles, computer/mobile streaming, gaming devices, over-the-top (OTT), or Smart TVs are referred to as CTV.
Any device that is intended to handle multimedia and connect streaming from the Internet can support connected tv advertising.
If you still have your reservations about what is connected tv advertising, really…then we got some answers for you.
CTV advertising is a private marketplace (PMP) business. Multiple layers of auctions are used in the programmatic media purchasing network, with each level having its own set of pricing and access restrictions. This gives advertisers access to precise placements while in an auction with fewer bids, resulting in considerably better winning rates.
In comparison with traditional TV advertising, CTV allows for more precise targeting and inventory selection, resulting in a more efficient route for reaching a larger market.
Simply put, CTV is the present and future medium for powerful digital advertising. Now, before we get too technical, let us shed light on the benefits of Connected TV for advertisers.
How Will Connected TV Advertising Give You An Edge?
In the space below, we have curated a list of ways how connected tv benefits your company!
1. Helps Create Brand Resonance
Commercials are broadcast at a considerably reduced frequency on OTT and linked TV, and usually only one ad at a time. In support of this, recent research revealed that when compared to completion rates on other platforms, OTT consumers complete 98 percent of video commercials.
Because viewers aren’t inundated with commercial after commercial vying for their attention, they’re more likely to give undivided attention to an ad and remember the brand. When compared to desktop and mobile viewers, OTT viewers demonstrated greater levels of brand recognition and favorability, according to the same survey.
Even if they don’t take action right away, showing an ad to a more responsive viewer increases the likelihood that they will become a customer in the future.
2. Helps Reach The Right Audience
…at the right time.
Connected TV is expected to continue increasing at a rapid rate, eventually surpassing linear television, by providing viewers with a controlled watching experience with access to high-quality content that allows them to pick what they want to watch when they want to watch it.
Because OTT platforms are mostly being consumed by millennials, the controlled advertisement ( that is also audience specific) will give the generation a feeling of command over their media consumption. Most millennials have a tendency to jump ahead with an ad or skip it because it does not resonate with them.
But with connected tv advertising, advertisers can assess their target audience and reach them at the right time – generating more traffic and gathering more potential clients.
3. It Is Light On The Pocket
CTV advertising is an opportunity for advertisers to save chunks of impression costs. Only one person sees an ad when they watch it on their personal Internet-connected device, whereas advertising on television might be seen by multiple individuals.
The same ad is viewed by several individuals at the same time, lowering the cost per impression for the advertiser. This renders it a budget-friendly option for the advertiser.
4. Enhances User Experience
Connected TV allows for full-screen delivery of targeted, highly customized, HD-quality advertisements with stereo sound. As a consequence, better ad quality enhances brand loyalty and increases brand visibility.
Furthermore, advertisements on connected TV provide a natural large-screen experience with excellent ad viewability. It mimics the look and feel of regular cable television. Consumers not only pay greater attention to CTV advertisements, but they also watch them for longer periods of time.
These were some ways that a connected tv benefits you and your quest to disseminate your content across the right people.
What Are The Different Formats Of CTV Ads?
The online ecosystem has long been a great place to deliver and consume a variety of ad formats, and now CTV advertising is actively changing the way people watch television.
Advertising on connected TV is a great experience. It enables advertisers to test animated, static, call-to-action, and interactive video advertising in order to enhance consumer engagement and video content performance.
Here are some amazing Connected TV advertising formats that you could incorporate:
1. In-Stream Ads
In-stream video advertising allows you to provide viewers brief, memorable commercial messages at various points of viewing.
2. Pre-Roll Video Ads
These connected tv advertising pieces are presented before the main content and are catchy enough to be memorable. Pre-roll video ads significantly aid in increasing sales and brand exposure.
3. Mid-Roll Video Ads
This ad format enables a TV-like user experience and is shown during the main content. Viewers are usually not hesitant to watch mid-rolls.
4. Post-Roll Videos Ads
Because they are shown after the primary material, they are the least distracting and have no effect on the user’s viewing experience. After seeing a post-roll ad, viewers are more likely to perform the intended action.
5. Pause Video Ads
It is presented while the viewers’ eyes are on the screen, paying close attention to the message in it, and it does not compete for attention with other devices or forms of information, resulting in a high view rate.
Marketers may greatly increase the success of their digital campaigns by having various video formats at their fingertips. Brands may fine-tune audience reactions, personalize engagements, and send tailored messages to diverse audiences throughout the world by picking customized connected tv advertising formats for each individual campaign.
In the section below, we have given a closer look into the premium OTT platforms/apps that allow CTV advertisements!
4 Top OTT Platforms That Allow Connected TV Ads
Here are four amazing OTT platforms/apps that allow seamlessly connected tv advertising.
1. Apple TV
With the introduction of its ad-free streaming service, Apple has launched a worldwide effort into the original TV. You may quickly subscribe to the channels you want without having to download any additional third-party apps.
Using the Apple TV app, you may watch the material that comes with your membership privileges. Additionally, the Apple TV stick flawlessly streamlines CTV ads along with entertainment content.
2. Amazon Fire
One of the best connected tv advertising platforms, Amazon Fire offers voice search capability, an improved keyboard, and rapid access to apps, as well as playback controls and navigation. It also downloaded the app controlling your traditional TV from the Amazon Fire tablet.
These applications are compatible with both Android and iOS smartphones. Gaming consoles, cable boxes, and other connected TV devices all broadcast OTT video advertisements.
OTT video inventory allows programmatic targeting to be applied to streaming media, bridging the gap between current digital media and conventional television advertising.
3. Google TV
Google’s Smart TV makers have a distinct advantage, providing them with a view into both the traditional and OTT worlds. Smart TVs come with a variety of built-in internet-connected apps, and you may pick from a variety of Smart TV packages.
Google TVs provide businesses and advertising with an almost limitless number of features.
Connected TV marketers get the greatest capabilities from Roku, and the OneViewTM ad has numerous sophisticated options. Identity, Instant OTT prediction, In-flight attribution, and proprietary audience are all devised by Cross, and it produces the best results.
One of the top connected tv advertising platforms, Roku has released an upgraded advertising platform that expands the OTT market’s versatility. It just launched a new consumer data initiative to help CPG marketers make their CTV advertising more quantifiable and accurate.
These were some of the premium CTV advertising platforms – and now, let us move on to have a look at CTV’s performance in the MENA market.
CTV Advertising In MENA
According to eMarketer, the number of subscription OTT video watchers in the Middle East and Africa increased by approximately 31.2 percent in 2020, making MENA one of the fastest-growing regions among Asia-Pacific, Central, and Eastern Europe, Latin America, North America, and Western Europe.
Advertisers have the potential to put their creative messaging amid TV programming as CTV and OTT advertising environments develop in MENA markets, maximizing reach and ROI with advertisements that are more relevant and targeted than those on linear TV.
Connected TV Advertising: What Does The Future Hold?
Connected TV ads are clearly the future of advertising. With advertisements being customized for the target audience, higher engagement rates, higher dependency on internet-driven smartphones, and simply the rise of general interest in consuming video content – connected tv advertising is flourishing and how!
Connected tv advertising statistics around the world show that there is a mass acceptance of the shift that is happening digitally. There are more than 164 million U.S. consumers viewing video content via connected TV devices and a forecast of up to 204.1 million viewers in 2022. Furthermore, according to the research on the connected TV industry, the number of households with CTV is expected to grow by 82 percent by 2023.
The CTV market has exploded in popularity in recent years, with research indicating that 53% of all UK homes use at least one streaming or subscription service.
Moreover, the pandemic has increased the amount of time we spend viewing digital television, according to Ofcom. And what began as a fad pushed largely by 16- to 34-year-olds has now spread to the over-55 demographic, who are beginning to embrace a new way of viewing television.
Shedding more light on the connected tv advertising statistics, the CTV programmatic advertising reached 78 percent of US households in the past few years and saw approximately a 122 percent rise in worldwide programmatic ad expenditure in 2020.
Moreover, Roku has been dominating the CTV market lately, accounting for 46% of programmatic ad expenditure in CTV. Samsung, Apple, and Amazon followed in second and third, respectively, with around 10% market share. From Q120 to Q420, Apple grew its ad market share by 379 percent.
As we saw, connected tv advertising provides companies with a significant chance to develop truly effective advertising campaigns by providing more customizable packages, possibilities to personalize commercials and more engagement.
Marketers will need to cooperate with other data owners to continue to improve the efficacy and measurability of their advertisements in order for the TV to succeed in the digital age.
Giving companies the capacity to accurately define audiences, move expenditure from one channel to another, and measure more successfully will all be required for the industry to demonstrate that a CTV investment is justified not just in the immediate term, but also in the years ahead.
Connected tv advertising is evolving and taking shape globally, and is expected to continue its world domination in the coming years.
- Neha Shah
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