Six reasons why brands should be utilizing connected TV advertising

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The entire landscape of TV media consumption has changed in recent years due to emerging technologies regarding the way users interact with their TV. Connected TV advertising is a means of connecting businesses and their target audiences.

What is Connected TV advertising?

Connected TV is a technology that supports smart TV advertising capabilities, which include programmatic advertising. Connected TV devices consist of various gaming consoles, online TV streaming services, and cable providers. 

 

TVs connected with OTT (over-the-top) is the same as connected TV, in which both need a broadband connection. However, it doesn’t require an active subscription-like cable or TV streaming service. Any provider of video-on-demand is considered an OTT service.

 

Programmatic TV ad buying is a method used for broadcasting connected TV ads to target audiences using the advantages of algorithmic ad purchasing. Artificial intelligence enables algorithmic purchasing specifically designed for programmatic advertising. In this case, connected TV advertising.

 

Businesses owe it to themselves to be on the frontline of emerging technologies and tactics for reaching their audiences. As “cable cutters” continue to migrate towards non-traditional ways of consuming TV, such as video-on-demand, it makes sense to incorporate programmatic TV advertising in marketing campaigns. Viewers now have the option to watch what they want when they want. As long as viewers have this control, marketers must find new ways to reach these audiences since “live-TV” is slowly becoming no longer in favor.

Six Reasons on why to use connected TV advertising

  1. Younger Generations prefer Connected TV

Studies show, approximately 65% of millennial households utilize connected TV only. Millennials do not share the same attachment as Baby Boomers, and Generation X do to TV. Millennials currently make for the largest demographic of consumers. The majority of purchase power is in the hands of this generation, and it makes sense to target them heavily as opposed to older generations. 

  1. Audience Size

In the US, on average, a household has three streaming video subscription services. Nearly half of homes still have traditional pay-TV and streaming subscriptions. Although it is expected for streaming video subscription services to continue to grow on a global scale, traditional pay-TV is still existent. TV audiences, regardless of where they watch, always have a demand for advertisements.

  1. Precise Targeting

A considerable advantage of connected TV advertising has over previous advertising techniques is the granular level of targeting. Specific demographics and insights are obtainable that were not previously with cable or dish. Before, ads displayed to all households in regions without knowing precisely who was watching them. Thanks to connected TV advertising, marketers know exactly who is watching, how much they are watching, and what they do after they watch. Key demographics will be targets in campaigns. Additionally, marketers will know in real-time how effective these campaigns are.

  1. Audience Segmentation

As previously mentioned, marketers would hope their ad was seen by their target demographic within specific regions. Now, with programmatic advertising, audiences based on certain variables can be niched down even further. For example, sports fans and history enthusiasts will have widely different ads catered to them. Also, similar to the point about targeting, retargeting these segments are just as easy. Which leads to point number five.

  1. Cross-platform advertising

As long as viewers continue to stream their TV media over the internet, they will continue to as targets wherever they go. Combining technologies give marketers a big-picture overview of the entire customer journey. What they search for on the internet, where they shop in the real world, how much of a video they watch – all of these and more tell marketers who these people are and their behavior. The next step is to leverage this information into their campaigns, following their audience from device to device. Connected TV advertising is a useful marketing tactic, but it becomes more powerful when combined with strategies.

  1. Higher ROI

Precise targeting, real-time insights, and lower entry cost, as opposed to conventional TV ad spots, lead to a higher ROI. Consider the fact that instead of displaying your ad to every household you can, you are instead reaching the devices of people more likely to convert. In turn, this alone leads to a higher ROI. Non-skippable connected TV ads are less of an annoyance to viewers since they understand it is the price of free streaming media. However, these ads are relevant to the viewer, which means better retention of the ad. Higher retention also equals higher ROI.

Final thoughts

Above all, connected TV advertising should be one piece of a giant marketing puzzle. Consumers have become accustomed to being advertised to. Regardless of what platform it is, a consumer understands what is and is not an ad. It’s up to advertisers to grab the attention of these viewers with relevant, targeted ads that make sense to them. With any CTV advertising campaign, these goals are attainable. The six reasons presented give proof as to why marketers should adopt connected TV advertising to their campaigns.

 

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