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Targeted CTV advertising combines traditional TV formats with the data-driven capabilities of digital advertising. In this article, we’ll explain what CTV advertising is, give examples of connected TVs, and discuss the benefits that come from using targeted ads.
What Is CTV?
Before we dive into a discussion on advertising, we first have to answer the question, what is CTV? CTV stands for “connected TV” and refers to any device that is connected to the internet and can stream more digital content than is available through traditional broadcast, cable, or satellite TV. CTVs include smart TVs as well as things like streaming devices and gaming consoles.
One of the key benefits of CTVs is that they allow users to watch content from a variety of sources, including streaming services like Netflix, Hulu, Amazon Prime Video, Disney+, YouTube, and many others. This allows people to watch exactly the shows or movies they want when they want them, which is different from traditional TV where shows could only be viewed at a predefined time.
Examples of Connected TVs
To better understand the devices that fall under the CTV category, here are a few examples of connected TVs.
Smart TVs
Smart TVs are televisions that have the internet built directly into the system, as well as apps that allow users to stream content directly without needing to install additional devices.
Streaming Devices
Devices like Roku, Amazon Fire TV, Apple TV, and Google Chromecast can be connected to standard TVs to enable internet streaming.
Gaming Consoles
Consoles such as Xbox and PlayStation also offer streaming capabilities, allowing users to access content through various apps.
Set-Top Boxes
Set-top boxes are devices that connect to a TV and convert internet data to TV signals so that movies and shows can be streamed to the monitor. These can also serve as a way to access CTV content.
What Is Connected TV Advertising?
What is connected TV advertising? Connected TV advertising is a type of digital advertisement that uses internet-connected television. This includes smart TVs, streaming devices like Roku and Amazon Fire TV, gaming consoles, and other devices that allow users to stream content from platforms like Netflix, Hulu, Amazon Prime Video, and YouTube.
How Do CTV Ads Allow for Better Targeting?
One of the main benefits of CTV ads is that they can be served to a very select, or “targeted,” audience. Unlike traditional TV advertising that relies on broad demographic assumptions, CTV ads use precise data that are collected directly from viewers. This includes first-party data from CTV platforms themselves as well as third-party data that provide additional insights into things like audience demographics, interests, and purchasing behaviors.
Advertisers can use this data to create specific audience segments and then show their ads only to those viewers. This makes it possible to target ads to people who are most likely to be interested in that specific product or service.
The targeting ability of CTV ads not only increases the ads’ relevance but also improves conversion rates. Additionally, real-time analytics allow advertisers to optimize their campaigns based on performance metrics, further improving their targeting.
The Benefits of Targeted CTV Advertising
Targeted CTV advertising gives marketers several advantages over other types of advertising, including improved engagement, less ad skipping, and better ROI.
High Engagement
CTV viewers are typically more engaged in the content since they choose what to watch and when they want to watch it. This leads to better overall ad performance compared to traditional TV advertising.
Less Ad Skipping
When ads are targeted to a viewer’s interest, it means the viewer is more likely to watch the entire ad. This leads to higher completion rates.
Better Cost Efficiency
With targeted ads, advertisers only pay for the impressions that matter most to them. This optimizes ad spend and reduces waste.
Real-Time Optimization
With CTV ads, advertisers can quickly adjust targeting, creative assets, and bidding strategies based on performance data, which can reduce wasted money and improve the overall success of a campaign.
How Do CTV Ads Differ From OTT Ads?
CTV ads and OTT (over-the-top) ads are often discussed together since they both involve streaming content through the internet. However, there are a few distinctions that set them apart.
First, CTV ads are only delivered on connected TV devices like smart TVs, streaming devices like Amazon Fire TV, gaming consoles, and other devices connected to a television that can stream content. OTT ads, on the other hand, are delivered through OTT services, which refer to content streamed over the internet generally. This means OTT content can be watched on a wider range of devices including smartphones, tablets, and computers, as well as CTVs. In other words, CTV ads are shown on television screens through internet-connected devices, while OTT ads can be on any internet-connected device, including CTVs.
Aside from the device the ad is shown on, there are a few other differences between CTV ads and OTT ads. First, CTV ads tend to have a slightly higher engagement rate since they are displayed on screens in a more traditional TV setting where viewers are focused on the content. OTT ad engagement can vary depending on the device. While mobile devices may have lower engagement due to multitasking, larger screens like CTVs (that fall under the OTT category) typically see higher engagement.
The format of the ads also differs between the two. CTV ads primarily focus on video ad formats such as pre-roll, mid-roll, and post-roll ads, as well as interactive ads and overlay ads designed for TV screens. OTT ads include a wider range of formats like display ads and native ads, which are adaptable to various device types.
When it comes to targeting, both CTV ads and OTT ads provide detailed analytics and advanced targeting based on viewer data from viewing habits and demographics, which can allow for highly targeted ads.
Learn More About CTV Ads with CTV Blueprint
Targeted CTV advertising is an effective way to reach highly segmented audiences and can improve marketing campaigns in a wide range of industries. To learn more about TV ads with CVT Blueprint, contact us today.
