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American consumers now spend more time watching streaming video than watching cable or broadcast video. They are flocking to both ad-supported (AVOD) and paid subscription (SVOD) streaming services, although a TiVo survey reveals that 81% would rather watch ads than pay for subscriptions.
This is great news for advertisers. With expanding opportunities to reach coveted “big screen” TV viewers, they are redirecting budgets and placements toward CTV instead of linear TV. Ad Age predicts that marketers will invest more than $19 billion on Connected TV advertisers this year alone – a major year-over-year increase and an accurate reflection of CTV’s rise in popularity.
They call it the “streaming goldrush.” CTV is not only one of the fastest-growing digital ad sectors, it opens even more doors for advertisers because it can reach viewers even when they are not at home.
CTV: An Advertising Essential In and Out of Home
CTV. You know what it is even if you don’t know the name. We're talking about TVs that are connected to the internet, capable of receiving streaming content that offers a far broader array of programming than that delivered by broadcast or cable TV. You can watch CTV (and integrated advertising) on a laptop or tablet as well as a connected or Smart TV. More than 80% of US homes have at least one CTV device, and most households use multiple streaming services.
As noted above, some streaming services deliver ad-free content whereas others sell and run ads within their programming. Some of the most popular services such as HBO Max, Disney Plus and Hulu offer both options. With viewers switching to connected TV, major media players such as Fox and Viacom CBS have expanded into this arena.
Why are advertisers using CTV?
No limitations:
TV advertising is called OTT (over-the-top) because streaming services can transcend geographic and broadcast schedule constraints that limit TV/cable advertising options.
Television advertising costs continue to rise despite the fact that viewership is declining. Advertisers are shifting budget because it makes sense. More choices mean more ways to reach targets where and when they are watching. You can continue to reach viewers who are still watching linear TV/cable as well as those who have cut the cord and switched entirely to Connected TV content services. Even more exciting, CTV reaches your targets on screens throughout the real world, just as it lets you “meet” viewers inside their own home.
CTV offers greater reach without greater cost – that means smaller brands can afford to invest in this channel to boost awareness and engagement.
In addition, CTV viewers are more likely to watch your entire ad (95% compared to about 80% on other platforms).
Interactive:
Digital ad content can be customized to reference your nearest store, the current weather or your viewers’ location such as the name of their city. Almost three-quarters of CTV viewers use a mobile device to respond to ad content in real time while watching TV. They can buy your product online or go to your website to capture a discount coupon. Sharethrough users can now automatically add a QR code to their CTV ads.
Measurable:
CTV can be targeted and measured just like digital advertising, increasing its value for advertisers. In some cases, cross-device tracking can identify if a viewer responds to an ad, what device they used and further interactions including conversion. “More precise targeting and greater measurement capabilities mean more relevant experiences for consumers,” notes NewDigitalAge. In addition, ability to capture more personalized (though anonymized) data enables brands to create more effective future campaigns.
Programmable CTV advertising uses detailed data to automatically place ads according to where and when the desired audience is watching, whereas linear and cable TV ads are content-based.
Putting CTV to work in your OOH portfolio
CT is a must for OOH marketers because it connects your brand and audience when they’re having a receptive micro-moment, no matter where they’re viewing. You can reach your targets on screens:
- At home
- At the gym, watching while you work out
- As a passenger in a rideshare or taxi with a screen
- In the subway
- On taxis, buses and other vehicles
- Inside grocery and retail stores
- In a restaurant or bar
- In the doctor’s office
- At the airport
Connected TV allows for creative content that can be “segmented, tweaked and redeployed for each channel,” says Advertising Week. Indeed. Incorporating CTV into your campaign mix boosts out-of-home reach across devices as well as channels and locations and it gives you another way to repurpose content for maximum format appeal and contextual relevance.