How Connected TV Advertising (CTV) could Help You Win the Branding Game?
Viewers get a full-screen branding experience with Connected TV advertising. It provides the perfect branding exposure while consuming digital ads on their TV sets. The media apps are the in-thing for smart TV viewers.
The ads appear more vivid with the fullest resolution of the TV during content streaming. Connected TV ads have opened a new dimension for the traditional TV ads by stretching a hand towards digital advertising consumption.
What is connected TV advertising?
Connected TV advertising is a type of new-age TV commercials that are streamed on the internet as well as the satellite cable network or device. Connected TV advertising is on a rise despite the fact that cable TV subscriptions are gradually scaling down.
Formats of connected TV ads: There are two popular formats of connected TV ads-
- 15-Sec. Video Ad
- 30-Sec. Video Ad
Why connected TV ads are soaring on popularity level?
There are multiple benefits of connected TV ads such as-
- A life-size visual experience that can’t be skipped.
- Provides high definition exposure.
- Parallel format to Digital Ads.
Connected TV ads are beneficial for tech-savvy small business marketers. Small business owners seek advantage with Connected TV ads as their targets are digitally defined. Also, Connected TV ads cater to vast creative prospects with integral video advertising.
How popular is Connect to TV ads?
A recent industry report says Connected TV ads will soon be ready for prime time showcase. About 55% of the population of the USA are Connected TV users that are a little over 182 million users. The market predictions also indicate that these statistics are expected to jump 200 million i.e. more than 60% of the population.
Connected TV ads are basically buying TV ads that are streaming over internet-driven apps and devices. Connected TV ads have a greater creative impact than that of TV commercials.
Don’t get confused with the terminology as CTV also stands for IPTV. This is because the content is distributed through IP packets or over-the-top (OTT) cable connection powered by internet connection.
All the terms such as OTT, IPTV, and CTV more or less mean the same based on the usage purpose. These terms refer to the broadcast quality of the video. These videos are generally longer in duration than YouTube videos and are mostly the format that resembles our traditional network Television.
Connected TV content distributing devices can be controlled from a smart TV, laptops, and even smartphones with in-built internet connectivity. Connected TV ad streaming devices are Amazon sticks, Roku boxes; also some gaming consoles such as PlayStation, X-Box can handle Connected TV content and advertising.
How does it function?
Connected TV ads are marketed through automated devices that can manage and track data while distributing on-demand content to subscribers.
This chain system closely monitors user base and finds the exact one at work in the Facebook advertising campaign. Similar to the traditional advertisement, in Connected TV Ads are among the ones where you create content to sell your product/service keeping in mind a set target group. Then you publish the ad to attract your target audience and engage them on a digital platform.
Here choosing the right platform has all the trick involved. Based on the purchase behavior and other socio-economic features you buy the ad space. Once viewers fit that targeted audience parameter. With the viewership, the digital platform goes on registering a detailed performance analysis for your review.
There are certain parameters for reviewing your content which include a series of data points that might or might not be familiar to the advertisers. Below are some of those critical metrics-
Frequency: This refers to the count as in the average number of times your ad is being displayed to a user.
Reach: It measures the percentage of the audience you expect to target with your ad, e.g. for an ad of a baby product, ideally, the target audience should be 70% of males and females from the age bracket 25-45.
Gross rating point (GRP): This is the metric that leads the internet and reflects the exact viewership count i.e. – the actual number of users who viewed your ad.
Suppose your audience parameter is ranging 28-45 of housewives who watch a series of tele soaps around 2 pm-3 pm on a particular channel, you have to buy that particular slot matching the demographics for gaining maximum viewership.
Let’s assume that you have purchased 2 slots to display your ad and 35% of your targeted audience view your ad, then the GRP would be 2 times of 35, or 70.
Cost per point (CPP): This metric determines what your cost will appear accounting for the GRP basis. Once your GRP is calculated, then your total CPP or the total media cost of your ad gets divided by the GRP of your ad.
Most of the time the look & feel of the CTV content remain as same as the video content that has been showcased on traditional platforms and channels. The only difference is that the platform it is using- CTV content is broadcast through internet connection, not cable TV network.
From the viewer’s perspective, CTV ads are either free of cost or less expensive than that of the traditional ones. For example, the subscription money for one year Amazon Prime charges is Rs. 999 that is equivalent to 2.5 months’ subscription money for your local cable TV network.
User-experience for traditional TV ads and CTV ads is almost equal. Viewers of CTV ads don’t really cave in these ads since they are by far pretty cost-effective.
The added benefit of these low-priced CTV ads is they are shown at pre-roll, end-roll, and even mid-roll-time which means CTV ads can be shown at the beginning, ending, and even in the middle of the show. Eventually, mid-roll is considered as the most effective type of advertising. Thus, the ad expense for a mid-roll is higher than the rest.
How competitive are CTV ads?
In terms of both the viewership and the availability, CTV ads have been increasing globally. Big players such as Amazon, Netflix, Hotstar etc. have their own mainstream shows which are really popular among the millennials. With a small budget and a niche target audience, these original shows are definitely taking CTV contents to a new height.
When your target audience is youngsters, then you have to make sure that they are registered and cling to your content while selling your products/services. One amazing fact is 67% of the millennials spend their leisure time watching CTV content over traditional TV programs.
Since creative liberty is substantial, CTV advertisers have to take additional care of the quality and the concept of the ad. This is why CTV content viewers enjoy HQ videos. It gets easier for a CTV advertiser to spread brand awareness with HQ videos.
Most of the time advertisers go on experimenting with the creative production format and styles in order to make it more engaging. Surprisingly, CTV ads have surpassed the completion rate of the traditional TVCs.
Based on the views, click, and engagement rate advertisers can track the performance of the CTV ads. CTV advertisers essentially need their viewers to get registered with their Gmail/Facebook account from where they get all the user details i.e. location, interest, demographics, and online behavior. This results in more specific and relevant CTV content generation and brand messaging complimenting the user requirement.
However, there are certain delusions regarding CTV ad concepts and their prospective target audience. Many believe that CTV ads have a totally different concept than TV commercials; hence TV commercials are popular. Well, the scenario is not the same anymore.
The final production cost of CTV ads is usually lesser than traditional TV commercials. Since with CTV ads, you have far more defined target group ads that are curated analyzing their interest and purchase behavior. For viewers find it relevant and appealing. Accordingly, the engagement rate gets higher than the traditional ones. On the contrary, traditional ads need a vast audience to gather favorable responses from the viewers’ perspective.
Viewers of CTV ads have to watch the entire content as they can’t skip them. Naturally, they absorb the complete message you need to convey about your product/service. Not necessarily every CTV content is that impactful, still, they are less persuasive and edifying than traditional ads.
A survey conducted by the Interactive Advertising Bureau (IAB) reveals that about 40% of the adult CTV consumers think that CTV contents are less explanatory. CTV ads connect with the right set of audience and send the exact message they intend to deliver.
However, there are shortcomings too. Since the format is newly introduced, it will take time to absorb the concept entirely. Only the upper-middle class and the rich category of the society can afford an HD smart TV or a streaming device. In that way, CTV ads face a real challenge as the target audience is relatively smaller.
As viewers can skip these as they tend to get busy with some minor household works in order to skip them. However, the future of CTV ads is indicating some greater prospects for video advertising based on the evolving business domains.
CTV ads- A perfect partner of growth for the Ad-Tech companies.
CTV ads are the latest and most effective marketing tool for companies. With a limited resource, you can radiate a larger brand awareness and targeting and retargeting their audience (with the offers and discounts) closer to their point of sale.
Since CTV ads are powered by the internet, brands get to work with multiple channels/platforms from where they can buy up a way greater visibility with various devices.
Brands with smaller budgets should connect with local ad Tech companies for generating better revenue through CTV ads. This strategic alliance will help in shooting out creative vision within a competitive budget.