What Is Connected TV and Why Does It Matter for My Business?
The continued evolution of digital platforms, streaming content, and devices, as well as how people consume media, is constantly evolving. Many people have parted ways with traditional TV and cable TV, meaning advertisers are missing out on reaching audiences. With the rise of streaming services, connected TV (CTV) is quickly becoming a vital contender businesses should not overlook.
What Is Connected TV?
CTV (connected TV) is any device used to connect to the internet to stream content. It includes smart TVs, gaming consoles, computers, streaming devices (Roku, Firestick, etc.), and apps used on tablets and smartphones. CTV allows people to watch TV shows, movies, videos, and other content whenever they want.
What Is OTT?
OTT (over-the-top) refers to the various streaming services, such as Netflix, Paramount+, Peacock, Hulu, Amazon Prime, and Disney+, as well as their apps used on tablets and smartphones.
What Is Linear TV?
Linear TV refers to traditional broadcast television, where you view shows based on a set schedule. You must view the show at a specific time; otherwise, you will miss it. Linear TV also has preset commercial breaks where ads are played during the broadcast.
Why Do CTV and OTT Matter?
With rising cable costs over the years, many people have cut the cord to manage their entertainment costs more effectively. As a result, they subscribe to various streaming services, both paid and free.
With the costs of ad-free streaming services increasing, many people are opting for ad-supported subscriptions. Additionally, free streaming services are ad-supported. CTV and OTT matter for businesses because it provides them with the opportunity to reach consumers they would otherwise miss with traditional TV ad campaigns.
Traditional TV vs. CTV/OTT
It is important to understand the differences between traditional TV and CTV/OTT when planning your digital advertising campaigns. As more and more people move away from over-the-air broadcasts, companies need to adopt new strategies to reach their desired audiences.
Traditional TV Campaigns
- Targets the entire market in the viewing area
- Must buy the entire market regardless of relevancy
- Overall, it is cheaper per person
- Results are not directly measurable
- Rough estimates of how many people viewed the ad
- Impressions are a best guess
- There is no real way to tell if the ad was viewed
- Targeting is generalized based on who you believe will watch the show or network
- Ads are managed by a local sales rep or, more likely, an employee at the network
- Ad optimization is limited to the show, network, or time slot, and results can take months
- Market saturation results in many people seeing the same ad over and over
- Most people receiving the ad are not relevant because no traditional ad can target specific individuals who are ready to act
- The campaign budget depends on the commitment to a network and can be restrictive and costly
CTV/OTT Campaigns
- Can be scaled to specific viewers, households, or geographic locations
- Slightly more expensive per person, but you can target relevant groups
- Directly measurable results and performance metrics
- Personalized custom-built reporting dashboard for real-time ad results
- Impressions are measurable
- Option for unskippable ad formats
- Data-driven targeting that can include geographical location, purchasing histories, search histories, what they are likely to buy, and much more
- Campaigns managed by experienced nerdy types who live and breathe digital marketing
- It is easy to know which ads were optimized because of real data and results
- Saturation can be limited to specific people and the number of times they see an ad
- No specific commitment to a specific network or platform — you choose how to allocate your marketing budget
Benefits of CTV/OTT Campaigns
CTV/OTT campaigns have numerous benefits as advertising technology continues to evolve. One of the latest trends you may have seen on Roku ad-support content is the ability to engage instantly. The ad features a product or service with the option to click a button on the remote to purchase it now. You don’t get this feature with traditional TV.
Other benefits include:
- Targeted audiences: You can scale your campaign to focus on a specific gender, age group, purchasing behavior, lifestyle, and more.
- IP-based targeting: You can provide more personalized and tailored ads to specific geographical locations using the IP addresses of CTV devices. This feature is beneficial for local businesses.
- Users are less likely to skip ads: Even with the option to skip ads, most people will sit through the ad because they are invested in the digital content being viewed. For example, with streaming TV content, they will see the entire ad while waiting for their show to resume.
- Flexibility to choose where ads are delivered: You are not tied to a network, specific show, or time slot. You can decide where, when, and how your ads are delivered, what streaming services are available, and to what devices.
- Measurable, real-time results: You know instantly how well a campaign is performing thanks to actual measurable data collected in real-time. This allows you to make adjustments to the campaign as needed.
Discover the Benefits of CTV Advertising Today
Are you ready to take your TV ad campaigns to the next level? At Levy Online, we have the expertise and knowledge to help create a tailored CTV advertising campaign to reach your targeted audience. We offer several different packages and options to suit your specific needs. Contact us today for further information about CTV advertising and how we can help your business reach your targeted audience.
Ready to try CTV? Let’s talk now.
Our Story
Levy Online is a division of the Levy Group of Companies, which has been serving clients worldwide for over 35 years. We offer comprehensive services that address many different areas of marketing, conveniently located all under one roof in beautiful Las Vegas, NV. This centralized concept helps to bring synergy to your online and offline marketing efforts.
To learn more about what we offer at Levy Online or other specialty services from our Levy Group of Companies, contact our team today!
