The best place for small businesses to capture consumer attention is in their own homes. At-home entertainment is on the rise, and how people engage with TV and content at home is shifting. In 2018, The IAB Video Landscape Report found that around 13.5 million households have abandoned traditional TV consumption for television streaming services on Smart TVs. As COVID-19 kept people at home, Conviva reported that streaming time was up 26% in the US and 20% globally. As more consumers have cut the cable cord for connected TV (CTV), more small businesses and advertisers are leveraging it to drive audience reach and boost brand engagement.
What is connected TV?
Connected TV refers to televisions with an internet connection that can load or stream different types of digital content. This includes Smart TVs (where internet connection is built-in), and standard TVs that connect to the internet via smart devices like gaming consoles, attached dongles like Roku or Apple TV, and internet-capable DVD players.
What's the difference between connected TV and OTT?
Over the top (OTT) is a term often used with CTV. OTT is the umbrella term for streaming TV-like content over any device (smartphone, tablet, etc). US subscriptions for OTT video services have risen dramatically in recent years, and IAB UK projects that by 2022 58.2% of the US population will be streaming video via OTT and Smart TV.
What's the most common type of connected TV advertising?
Consumers stream content from many different platforms. YouTube, Hulu, and Roku currently control half of the connected TV revenue, with YouTube expected to grow to 39 percent of the market share by 2022. This variety gives advertisers unique opportunities to engage with consumers using connected TV ads.
The use of in-stream video ads is the most used type of connected TV advertising. These unskippable 15- to 30-second ads appear before or during a program. Ads are shown to a custom geography with zip code level targeting, allowing brands to share their message with relevant consumers on premium networks. This is a cost-effective opportunity to reuse existing television ads to reach audiences that are no longer available through traditional cable TV.
What are the benefits of connected TV advertising?
CTV advertising is one of the most effective ways for advertisers to reach their audience. CTV ads are more targeted, measurable, cost-effective, and on-trend with consumer behavior than linear (traditional) TV advertisements. CTV allows advertisers to target their audience, profile who is viewing ads, and create dynamic ad platforms that follow the audience journey in a trackable way.
A few of the many benefits of connected TV advertising include:
Increased views: One of the biggest benefits of using connected TV ads is the fact that audiences watch on-demand – they are more engaged because they choose to be there. Advertisers can track how many target users actually played an ad and for how long. This helps brands understand audience interaction and which ads may need to be optimized to reach consumers in a more meaningful way.
Precise targeting: In order to watch content on connected TV, consumers must login and create a profile. This gives advertisers the opportunity to create targeted ads based on zip code, interests, time of day, and more.
More for your money: Connected TV ads are cost-effective because every ad dollar goes toward the intended target. Selecting unique audiences to target creates the highest potential for audiences to consume your ad, which leads to greater action and return on investment.
How to use connected TV ads to drive consumer action
With shorter attention spans and mobile devices always in reach, audiences are multitasking during their streaming time. CTV can improve brand awareness and drive conversions across devices with the help of view-through attribution and second screen retargeting using sequential messaging to drive action.
Almost three-fourths (71%) of CTV viewers say they use a mobile device to look up a product they see related to the ads or content they are watching, while 41% said they text, email or message someone about the content, per a Nielsen report. Second screen ad capabilities improve the viewer's chances of following up on an ad by 75%, significantly improving ad effectiveness, according to a study by media agency MediaCom and technology company ViewersLogic.
As audience viewership behaviors shift, small businesses are finding they need to change how they approach their advertising strategies to reach consumers. Connected TV is a targeted, transparent, and trackable way to reach ideal audiences, save money, achieve a higher ROI and build brand recognition with compelling messaging.
To learn more about how connected TV can help your business achieve next-level engagement, schedule a demo today.