What Is CTV Advertising: A New Medium For Revenue?

Entering the world of CTV advertising can feel like navigating a labyrinth. You might have heard about its potential, but you’re unsure where to start…

The realm of Connected TV Advertising is interesting..but not complicated!

This is what separates businesses stuck in traditional methods from those taking advantage of innovative marketing strategies. But if you don’t know how to utilize CTV advertising, reaching this level effectively may seem impossible.

Navigating the complexities of CTV ads isn’t easy, but manageable. It’s a continuous hot topic in mobile marketing and advertising. The new trend seems to be “How do we get programmatic ads into CTV?”

Many companies are investing millions trying to figure this out, but who will succeed? No one is quite certain yet. 

What is Connected TV Advertising?

The world of advertising has witnessed a dramatic shift with the advent of Connected TV (CTV) advertising.

This rapidly growing sector now accounts for over 80% of all viewing on most streaming services, marking a significant departure from traditional television and linear TV advertising.

You watched Netflix, right? 

A Paradigm Shift in Viewing Habits

In essence, CTV refers to any type of TV that can be connected to the internet and stream digital video at a viewer’s convenience.

It represents an evolution in consumer behavior as viewers are no longer bound by broadcast schedules or geographic restrictions.

Rise Of The Cord-Cutting Trend

Cord-cutting aka moving away from traditional pay-TV options like cable or satellite – has been gaining momentum across U.S households.

Data suggests that more than 39.3 million U.S households were expected to have “cut the cord” by the end of 2023 according to research published on Statista.

Differentiating Factor: CTV Ads vs Traditional Television Ads

An important distinction between CTV ads and their counterparts on traditional television lies in how they’re delivered.

While conventional methods rely heavily upon predetermined scheduling based largely on programming slots, CTV advertisers benefit from dynamic ad insertion which allows them flexibility when it comes time for their commercials’ airtime.

New Opportunities For Advertisers With The Advent Of CTV Platforms

The proliferation of CTV platforms opens up new avenues for brands. Brands are looking towards innovative ways to reach potential customers without being confined within boundaries set forth through legacy systems. This sets the stage for my next section discussing why exactly do linear TV advertisers love CTV so much.

The Evolution and Impact of CTV Advertising

As the way people watch TV evolves, so does the advertising industry. The shift from traditional TV to CTV platforms has been significant.

In 2026, US linear TV ad spending is predicted to fall to $64.94 billion. Meanwhile, last year saw an increase in CTV ad spending topping $16 million per advertiser in the United States – a +8% growth year over year. That’s huge!

The Rise of Streaming Services

Peacock video streaming services, among other popular streaming providers’ owned properties, have played a pivotal role in this evolution by promoting CTV viewing habits that differ vastly from those associated with traditional television.

This change not only reshapes how audiences consume content but also transforms marketing strategies as advertisers adapt their methods for these new platforms.

Why Linear TV Advertisers Love CTV?

A key factor behind this transition lies within its inherent advantages: precision targeting capabilities based on viewers’ IP addresses, detailed measurement possibilities, high engagement rates, and so on.

All these features combined make it easy to understand why linear TV advertisers love CTV and are gradually shifting their focus toward it.

Advantages of CTV Advertising Over Traditional Methods

Gone are the days of traditional TV being the only viable way to reach a large audience. CTV Advertising has revolutionized advertising in this digital age.

CTV Advertising: A Game Changer

Recent studies suggest that 87% of marketers believe CTV advertising is more efficient than its traditional counterpart.

This belief stems from several unique benefits offered by this innovative form of advertisement.

• In contrast with linear TV, which broadcasts ads indiscriminately, CTV platforms allow advertisers to target specific demographics based on viewers’ IP addresses or even viewing habits. Cat fan? We now know the shows you watch to target you with some new cat litter! 
• Coupled with third-party data providers, such precise targeting can lead to higher engagement rates and better return on ad spend.
• Last but not least, unlike traditional television where measuring an ad’s effectiveness can be challenging, CTV provides granular insights into how well your CTV ads perform allowing for optimized campaigns and actionable in-flight recommendations.

Buying and Optimizing Your CTV Advertising

Navigating the world of CTV advertising can seem daunting, but with a clear strategy in place, it becomes much more manageable.

Developing Your Strategy

Your first step is to develop an effective strategy that aligns with your business goals. This could involve identifying key demographics for targeting or determining which CTV platforms are most popular among your target audience.

Selecting A Platform And Ad Types

The next step involves selecting a platform for your ads. Whether you choose Roku, Amazon Fire TV, Apple TV, or another option will depend on factors such as cost and reach.

Once you have chosen your platform, it is time to determine the type of ad that will best meet your needs. There’s plenty of choice when it comes to common video ad types. From linear TV ads reminiscent of traditional television commercials, interactive OTT advertising options offer enhanced viewer engagement opportunities.

Finding The Right Audience

To achieve maximum impact from CTV viewing experiences offered by these platforms, understanding who exactly comprises the “right” audience is a crucial part of any successful campaign. You might use third-party data providers’ attribution data here to help define precise demographic profiles of those viewers likely to be interested in product service offers.

Gauging Performance For In-Flight Optimization Linear TV Advertising

Lastly measuring performance is an ongoing process. Not only to assess the effectiveness of current strategies making necessary adjustments but also to optimize campaigns’ actionable in-flight recommendations.

How Local Advertisers Can Leverage CTV

In the evolving digital landscape, local businesses are discovering new avenues for reaching their target audience. 

Leveraging CTV Ads for Targeted Marketing Campaigns

The appeal of CTV ads lies in their precise targeting capabilities and high engagement rates. This makes it an attractive option even for small to medium-sized enterprises looking to maximize ad spend.

A notable example can be seen with quick-service restaurant brands utilizing this method successfully. By integrating data from third-party providers, these companies have been able to optimize campaigns with actionable in-flight recommendations based on real-time consumer behavior patterns.

Achieving Revenue Growth Through Effective Use Of Ad Tech

Understanding how new technologies can drive business growth is key to successful digital transformation. A case study that illustrates this point involves marketing services company Material+, which achieved a staggering 600% revenue growth over five years through the effective use of CTV as reported by Digiday.

This success story underscores the potential benefits that await businesses willing to embrace innovative solutions like CTV advertising.

In my next section let’s delve deeper into what those possibilities might look like when mobile advertising intersects with connected tv platforms.

Future Of Mobile Advertising And Its Intersection With CTV

The mobile world is quickly changing, and many advertisers like Mistplay are thinking of ways to continuously promote their mobile brands on a bigger screen. 

Merging of Mobile and CTV Platforms

A key development in this space is the blending of mobile advertising and CTV. This integration allows marketers to deliver ads seamlessly across multiple screens, enhancing user experience while maximizing ad exposure.

Madhive suggests that CTV will be up another $24 Billion by the end of 2023!

Potential Benefits For Advertisers

The intersection between mobile and CTV platforms offers several benefits for businesses. Firstly, it enables them to engage audiences on different levels through personalized content based on viewer behavior data collected from both mediums.

1. Better Targeting: By leveraging third-party data providers’ attribution data, companies can create highly targeted campaigns that resonate with specific demographics or interest groups leading to an increase in conversion rates.
2. In-flight Optimization: The real-time nature of these platforms also provides opportunities for optimizing campaigns’ actionable in-flight recommendations thus improving campaign performance over time.
3. Improved ROI: When used correctly, brands could achieve tremendous revenue growth similar like Material+ achieved according to Digiday’s case study.

Trends Shaping the Future Of Mobile And CTV Integration

• Data Privacy Regulations: As privacy concerns grow globally there may be restrictions placed on how much customer information can be shared between platforms which might affect targeting capabilities. Privacy is always changing, and being ahead of it is a challenge all on its own. 
• New Technologies: Advancements in technology are always expected and make it possible for even greater personalization of cross-channel experiences.
• Growth In OTT Services: Over-the-top (OTT) services continue to gain popularity offering additional avenues to reach potential customers particularly the younger demographic who prefer streaming services to traditional television viewing methods.

FAQs about CTV Advertising

Why is CTV important for advertising?

CTV provides advertisers with precise targeting capabilities, high engagement rates, and detailed measurement possibilities. It’s a game-changer in reaching cord-cutting audiences.

Is CTV advertising worth it?

Absolutely. Studies show that an engaged CTV viewer is twice as likely to purchase after seeing an ad compared to traditional TV viewers.

What is an example of CTV advertising?

An example would be ads shown on streaming platforms like Netflix or Hulu during programming breaks – these are all part of Connected TV Advertising.

What are the benefits of CTV?

The key benefits include more accurate audience targeting, improved user engagement, localized marketing based on IP addresses, and comprehensive performance metrics for campaign optimization.

Conclusion

CTV advertising is revolutionizing the marketing landscape.

This digital powerhouse has taken over traditional TV, with more than 39.3 million U.S. households expecting to cut the cord by the end of 2023.

The shift in ad spending from linear to CTV platforms is massive and transformative.

Streaming services like Peacock are at the forefront, reshaping viewing habits globally.

With its precise targeting capabilities and high engagement rates, it’s no wonder that 87% of marketers believe CTV advertising outperforms traditional methods!

An engaged viewer on a connected platform? Twice as likely to purchase after seeing an ad they paid attention to – that’s powerful stuff!