Why Small Businesses Should Embrace Connected TV: A Game-Changer for Digital Advertising
Many small businesses have found it increasingly challenging to compete with larger brands that dominate traditional media channels. However, a new frontier in digital marketing has emerged, offering unprecedented opportunities for businesses of all sizes: Connected TV (CTV) and Over-the-Top (OTT) advertising. These digital TV platforms have opened up a world of possibilities, allowing smaller companies to reach highly targeted audiences in ways that were previously impossible.
In this article, we’ll explore the rise of CTV and OTT advertising and how small businesses can leverage these platforms to elevate their marketing strategies. We’ll discuss how CTV levels the playing field for smaller brands, how it offers cost-effective advertising options with impactful results, and how it enables precise audience targeting that ensures your message reaches the right people at the right time.
How CTV Levels the Playing Field for Small Brands
In the past, advertising on television was a luxury that only the largest brands could afford. The high cost of producing TV commercials and buying air time made it nearly impossible for small businesses to compete for consumer attention in this medium. CTV and OTT have changed all of that.
What is CTV and OTT?
Connected TV refers to internet-connected devices that allow viewers to stream content on their televisions, while OTT (Over-the-Top) refers to content that is delivered via the internet, bypassing traditional cable or satellite providers. Popular platforms such as Hulu, Roku, Amazon Fire TV, and YouTube TV fall under these categories, offering viewers a mix of live programming, on-demand content, and streaming services.
Smaller Budgets, Bigger Opportunities
One of the most significant advantages CTV offers small businesses is the democratization of television advertising. In traditional TV advertising, small businesses were often priced out by the high cost of prime-time slots and national campaigns. In addition, traditional TV advertising requires you to advertise who a whole market, meaning a small business must pay to reach individuals who may be too distant to be relevant. CTV, however, allows companies to buy ads based on their budget, with flexible options for regional and even hyper-local advertising. This means small businesses can now afford to place ads during premium shows on top streaming platforms, allowing them to compete alongside major brands.
With CTV, businesses are no longer at the mercy of broadcast schedules. Instead, they can purchase ad space based on their audience demographics, viewing habits, and geographic location, offering a more tailored and effective approach.
User-Controlled Viewing
Another way CTV levels the playing field is through user engagement. Traditional TV commercials often feel like interruptions, but on streaming services, ads are less intrusive, and viewers are more likely to engage with them, particularly if they’re relevant to their interests. CTV platforms give viewers the power to choose what content to watch and when to watch it, which means that advertisements are shown in the context of a highly personalized viewing experience. This viewer-centric model benefits small businesses because it allows them to align their messaging more closely with the consumer’s needs.
Budget-Friendly Advertising with Big Results
One of the major concerns for any small business owner when embarking on a new advertising venture is budget. With CTV and OTT advertising, you don’t need a massive budget to see results. The cost-effectiveness of these platforms is one of the primary reasons they are gaining traction among smaller brands.
Pay Only for What You Need
With traditional TV, businesses are often locked into expensive, long-term contracts for ad space that may not provide the best return on investment (ROI). CTV and OTT platforms, on the other hand, offer more flexible pricing models, and can provide more meaningful reporting to help guide future decisions. This flexibility means that small businesses can tailor their ad spend to their budget while still achieving measurable results.
The reporting and analytics available to CTV and OTT advertisers provides detailed insights into how your ads are performing. This data can be invaluable, as it allows small businesses to optimize their campaigns on the fly, ensuring that their marketing dollars are being spent as efficiently as possible.
Targeted, Not Wasted, Impressions
One of the most frustrating aspects of traditional advertising is the potential for wasted impressions. With traditional TV ads, you pay for broad, generalized exposure. But how many of those viewers are actually in your target market? CTV’s precision targeting eliminates much of this waste.
Through programmatic advertising platforms, CTV allows small businesses to target specific audiences based on a wide array of factors, including age, gender, interests, and viewing behaviors. This means your ad is being seen by the people who are most likely to be interested in your product or service. No more paying for an ad to run during a TV show your target audience may never watch.
And how many people actually saw your ad? Traditional media provides an estimated number of impressions. This is completely different from CTV and OTT. For an impression to be measured from these digital formats, a person generated the ad impression itself by requesting to stream from a premium app. Even better, there are certification and viewability standards in place to ensure a real, live human actually viewed the ad.
Lower Production Costs, Higher Engagement
Not only is the media buy more affordable, but the production costs of CTV ads can also be significantly lower than traditional TV commercials. Small businesses can create effective ads with a lower budget by using video content that’s optimized for digital platforms. In many cases, high-quality CTV ads can be produced at a fraction of the cost of a traditional TV commercial, and they can be easily updated or swapped out based on campaign performance.
This level of adaptability is crucial for small businesses, especially when they need to pivot their messaging quickly in response to market conditions or customer feedback. The ability to produce, test, and refine ads in near-real-time is an incredible asset for companies with limited budgets and resources.
Reaching the Right Audience at the Right Time
One of the most powerful aspects of CTV and OTT advertising is the ability to deliver your message to the right audience at exactly the right time. With traditional TV advertising, you could only hope that your ideal customer was tuning in when your commercial aired. Now, small businesses can ensure that their ads are seen by the right people, increasing both the relevance and effectiveness of their campaigns.
Advanced Targeting Capabilities
CTV and OTT platforms offer a wealth of targeting options that go beyond traditional demographics. By leveraging data from users’ viewing habits, subscription services, and device usage, advertisers can pinpoint specific audience segments. These segments can be based on interests, buying behaviors, location, or even the type of content the user is watching.
This level of targeting ensures that your ad is not only being seen by the right people but also at a time when they’re most likely to engage with your message. For example, a small business selling fitness products can target users who frequently watch health and wellness content. Similarly, a local restaurant can advertise to viewers who live within a much smaller, specific geographic area and their digital behavior looks like the restaurant’s prior customers.
Behavioral and Contextual Targeting
Behavioral targeting, which uses data about a user’s past online behavior to inform ad placement, is particularly valuable for small businesses. Instead of casting a wide net, CTV allows businesses to tailor ads based on real-time user activity, which results in a higher likelihood of conversion. Whether it’s targeting viewers based on their shopping habits or the type of content they consume, this kind of targeting ensures that ads resonate more deeply with potential customers.
Contextual targeting, on the other hand, delivers ads based on the content a viewer is currently watching. For example, if someone is streaming a cooking show, a local grocery store or meal delivery service can deliver ads that are directly relevant to that content. This kind of alignment increases the chances that the viewer will find the ad useful and take action.
Reaching Cord-Cutters and Younger Audiences
One of the main drivers behind the rise of CTV is the growing number of cord-cutters—people who have canceled their cable subscriptions in favor of streaming services. This demographic includes a significant portion of millennials and Gen Z consumers, who prefer on-demand content and personalized viewing experiences – many of these individuals are never exposed to traditional/linear TV media.
For small businesses looking to reach younger audiences, CTV is an ideal platform. These viewers are less likely to be exposed to traditional TV commercials, but they spend a significant amount of time consuming content via streaming services. CTV enables businesses to connect with these hard-to-reach audiences, delivering ads that feel relevant and timely.
Small Business CTV: Get Your Ad On TV For As Little As $500/mo
Conclusion: Why CTV is a Must for Small Businesses
Connected TV and OTT advertising have fundamentally changed the way small businesses can approach television advertising. No longer do you need a massive budget to reach a large, engaged audience. With CTV, small businesses can now access powerful, cost-effective, and highly targeted advertising options that were once only available to the biggest brands.
By leveling the playing field, offering flexible budget options, and providing advanced targeting capabilities, CTV allows small businesses to reach the right audience at the right time. The ability to tailor campaigns based on detailed user data and performance metrics makes CTV advertising not only accessible but also incredibly effective for small brands.
For small business owners and decision-makers looking to maximize their marketing efforts, CTV and OTT advertising offer a game-changing opportunity to compete and thrive in today’s digital landscape. Now is the time to embrace this new era of advertising and take advantage of the benefits that CTV provides.