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You may have spent all day binge-watching your favorite series on a CTV, a connected TV. If you watch TV on a device that is not a cable box or satellite set, you are likely among the majority.
However, there’s more to CTV viewing and trends than just knowing that you’re in the know. The latest trends in TV viewing habits nationwide have changed how companies approach their marketing strategies.
Are you ready to harness the power of connected TV ads for your omnichannel strategy?
Let’s start with some background.
Defined
Connected TVs allow you to stream digital content directly onto your TV. CTVs can stream Big Little Lies via high-speed internet, whether built into the smart TV itself or through a separate device such as a Roku or game console.
There are connected TVs almost everywhere. Leichtman Research Group states that 80% of homes own a CTV. You may have owned one from the beginning or even used one at home without realizing it.
Here’s a look at the most popular CTV devices.
Apple TV
Roku
PlayStation
Xbox
Amazon Fire
Chromecast
CTV vs. OTT
What’s another term that you should know? Over-the-top services are also called OTTs. Although they are often linked to CTTs, they cannot be used interchangeably.
What is the primary difference? The OTTs are available in various locations, including mobile phones, tablets, laptops, and smart TVs. They can also be accessed on PCs, consoles, and game consoles.
CTVs must, however, be connected to an existing television.
The following are some of the most popular OTT platforms available on the market:
Netflix
Hulu
Disney+
HBO Now
Amazon Prime Video
CTV Ad Types
CTVs provide hours of entertainment at home. They are a great advertising tool you might want to incorporate into your omnichannel strategy.
Let’s first compare how they look on a connected device to a cable or satellite connection.
Advertisement for connected TVs is available in three main forms:
Instream video ads These ads are often impossible to skip and can be played before, during, or after a CTV video is streamed. These ads are usually between 15-30 seconds in length.
Home Screen Ads- CTV users can choose a movie or program by browsing the menu on their home screen. Here you will find the home screen ads.
Interactive Ads- These advertisements may appear when video content is streamed, but they will also have some type of interactive element. Viewers can interact with the ad by clicking on a landing page or website.
Look at the CTV trends below to help you decide how to best shape your strategy.
CTV: Viewership Data A Closer Look
CTV viewing is increasing and will continue to do so in the future. You’ll have to be more specific to understand how you can capitalize on this marketing channel.
Here’s what you should know about the audience:
In a 2020 survey, nearly half of American polls used CTVs on a weekly base.
According to the third quarter 2020 report, the age group with the highest CTV viewing was 18-34.
By 2024 the number of US households using-connected TV devices will increase from 105 million in 2020.
These numbers reflect the usage of CTV and the demographics that it is most popular among. Marketers can use this valuable information to better target their targeted demographic. This information gives marketers the confidence they need to invest in a promising future trend.
Advertising patterns are beginning to shift due to the increased CTV viewing. Look at the statistics below to see how the market has responded to these evolving trends.
In 2021, 35% of media buyers intend to increase their advertising spending on connected TV.
Over half the advertising budget will be digital video (CTV, OTT) rather than linear television (cable or Satellite).
By 2021, nearly three-quarters of media buyers will shift their budgets to CTV advertising instead of broadcast TV.
Over 80% of media buyers surveyed in the United States cited targeting as the main reason for switching from linear TV to OTT or CTV ads by 2021.
The spending on linear television advertising has decreased by 14% from the previous year.
By 2025, the United States will spend 27.5 billion dollars on CTV advertising.
Translation? CTV advertising is expected to continue increasing shortly. Media buyers have been predicting this trend for years, while others are only now rushing to jump on board.
CTV Advertising Benefits
You’ve probably already guessed that connected television advertising can boost your marketing. Take a look at some of the main benefits that marketers can expect to see from this trend.
Access new audiences – Marketing strategists optimize their campaigns by using ads tailored to certain channels. If a company wants to reach a younger audience, it may find that its ads are more effective when displayed on CTVs rather than traditional linear TVs.
Gain a deeper understanding of your audience- A key element to marketing success is a greater understanding of the demographics and their behavior. You can tailor their experience more precisely with more information about them. You can learn more about those who are already interested in your product and choose a retargeting strategy. You can adjust your ads based on location, language, and peak activity times. What is the biggest benefit? Precise audience segmentation and more efficient spending.
Higher completion rates for ads- Why spend precious advertising dollars on advertisements that might not be seen? One of the best reasons to invest in TV advertising on connected devices is their high completion rate. A report revealed that in 2020, 95% of CTV ads would be watched to the end. What is the reason for such a high percentage? Most CTV ads have an appealing feature that makes them impossible to skip.
Useful metrics – CTVs can combine data from users’ IP addresses and viewing history to learn more about each viewer rather than a large group. CTVs offer data tracking features that allow marketers to gain specific insight into how many viewers visited your website or purchased after viewing an ad.
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