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The Power of Connected TV (CTV) Advertising

Connected TV (CTV) has gained much traction nationally in the digital marketing landscape, allowing advertisers to reach their audience with video content on Smart TVs and Over-the-Top Television (OTT) devices such as Amazon FireSticks, gaming consoles, and more. CTV is used for pre-recorded shows and live events. This leads to the question: is there a ceiling with CTV? We can look at the continued growth in CTV advertising that we will cover, positioning it as a great opportunity for marketers looking to capitalize on potential exposure.

 

“Cutting the cord” is the idea of getting rid of cable and switching solely to streaming services, and has become a popular option which means, the cost associated with streaming services is increasing. Most streaming platforms offer an inexpensive, ad-supported subscription package, and to keep up with their shows, people across the nation are paying less to consume content on every platform. With more individuals choosing ad-supported options, the opportunities with CTV are clear. Marketers can populate their ads in front of a growing audience on some of the most popular streaming sites in the world, like Hulu, Disney+, HBO Max, and many more. 

 

The fun part of CTV is that you can essentially utilize any type of video content you want! With the power of programmatic advertising, your video can target the specific user and their interests, not necessarily the shows you think they might be watching. This creates a huge opportunity for both large and small brands alike.

 

How many people are actually choosing to consume content through ad-supported subscription packages? In 2024, Streaming Media reported that “only 13% of consumers are opposed to ad tiers in streaming, down from 36% in 2022.” Although, it was also determined that “55% of respondents said they dislike ads overall”. Which leads us to to question of: how do marketers effectively utilize the power of CTV without it  negatively impacting consumers purchasing behaviors.

Steaming Media has this to say: 

“Streamers and their advertisers should prioritize ad formats and content that complement or enhance the viewing experience. Another is balancing ad loads and controlling the frequency of ad exposure. . . align ad and product content with the entertainment, prioritize ad placement before the show rather than in the middle, and allow viewers to share feedback about which ads resonate (or not) with them.”

Essentially, you want to consider variables like ad frequency, advertisement placement which ties into audience persona and demographics, and ad formats like contextual videos or shoppable ads. CTV is a wonderful tool, but you always want to consider your ideal customer and their potential behaviors. 

 

CTV Tips, Tools, and 2024 Trends:

As a beginner in CTV advertising, we want to share some a few areas of CTV advertising to be aware of:

  1. Personalized ads: CTV ads are able to understand viewer behaviors through data collected. This data is critical in making decisions about future efforts because it helps determine content subjects and more. 
  2. Retargeting: With CTV you are able to retarget previous viewers, essentially reminding them of your brand and re-encouraging them to take action.
  3. Display frequency: As a CTV advertiser you are also able to control the frequency of ads. This decision may require you to consider budget, resources, but also how the viewer may respond to seeing you ctv ad – you want to be cautious you don’t over do it.
  4. Interactive CTV ads: We are now getting to a point where CTV ads are interactive. Meaning, ads now directly request actions such as scanning a QR code. This may lead to an increase of conversions and ultimately help you reach your marketing goals. 

Tools:

Depending on your target audience, we suggest leveraging a DSP or a direct buy from a streaming platform. DSPs offer more advanced targeting and conversion tracking with a higher CPM, whereas a direct buy might lack specific features but can yield a lower CPM. Many platforms offer a free trial period, so you can experiment before committing. Also, certain platforms provide free courses that train you on courses. For example, StackAdapt has a library of courses you get take to get started. 

 

The Power of CTV

CTV is starting to change how advertisers approach video marketing, giving them an entirely new lane to promote their products and services. With growing audiences on streaming platforms, now is the perfect time to add CTV to your marketing strategy. As a leading digital marketing agency in Youngstown, our advertising knowledge and expertise provide genuine results that contribute to the growth of your business and your brand awareness. Contact 898 Marketing today for more information about how our proven advetising approach works!

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