The Connected TV Revolution: Exploring the Role of Connected TV Platforms

Over the last decade, connected TV (CTV) has revolutionized the media landscape in the past decade. CTV — internet-enabled television sets that allow users to stream content over-the-top (OTT) — falls right in line with the widespread shift toward internet-based media and subscriptions over cable television.

Smart devices are everywhere now. 74% of homes have at least one smart TV. And plenty have more than one. So, there are tons of connected TV platforms out there to meet this market demand.

In this article, we’ll dive into the role connected TV platforms play in advertising and what the future holds for this ever-evolving technology.

The Rise of Connected TV Advertising

For the end user, connected TV platforms like Roku, Amazon Fire TV, and Apple TV are 100x more convenient than traditional cable TV. Not only do they have access to a variety of streaming services and content, but they can also customize their viewing experience with personalized recommendations and even ad preferences.

With millions of active users and a wide range of content options to choose from, these platforms offer advertisers an opportunity to reach highly engaged audiences. Because of this, advertisers are presented with a unique opportunity to reach audiences in a more targeted and personalized way.

Here’s a look at some advantages CTV advertising has over its traditional counterparts:

• Better ad targeting. CTV platforms have access to user data, allowing advertisers to target specific demographics and interests. This results in more effective and relevant ad placement.
• Measurable results. Unlike traditional TV advertising, CTV provides measurable results through data and analytics. Advertisers can track metrics like impressions, viewability, completion rates, and conversions. This provides valuable insights for future campaigns.
• Cost-effective strategy. CTV advertising is often more cost-effective than traditional TV advertising, making it accessible to businesses of all sizes. Since it’s success-based (advertisers pay per impression or click), it eliminates the risk of overspending on ineffective ad placement.

But while CTV advertising offers many benefits, there are still challenges to address and improvements to be made. For instance, CTV platforms and advertisers must find a balance between personalized targeting and respecting user privacy. Additionally, measurement standards for CTV advertising are still being developed and standardized.

Considerations for your CTV Ad Strategy

As with any form of advertising, there are important considerations to keep in mind when utilizing connected TV platforms for ad placement.

• Target audience. The success of CTV advertising relies heavily on targeting the right audience. Advertisers must have a clear understanding of their target audience and ensure that their ads are reaching them effectively.
• Content relevancy. As with any form of advertising, ad content must be relevant and engaging to the target audience. Advertisers should consider using CTV-specific creative that makes use of interactive elements like clickable overlays or shoppable ads.
• Placement optimization. Ad placement is crucial in ensuring maximum visibility and engagement. Advertisers should work closely with CTV platforms to optimize ad placement for their target audience.
• Measurement and analytics. The effectiveness of CTV advertisements can be measured through various metrics such as viewability, completion rates, and conversions. Advertisers should consistently analyze these metrics to uncover insights and improve future ad strategies.
• Privacy considerations. With the rise of data privacy regulations, advertisers must ensure their CTV ad strategies respect user privacy. This includes obtaining necessary permissions for data collection and ensuring transparency in how user data is used.
• CTV advertising is generally cost-effective, but it’s crucial for advertisers to budget appropriately. Indirect costs include creative development, ad placement, and analysis of campaign performance. Therefore, understanding these costs and planning accordingly is essential for a successful CTV ad strategy.

The Future of Connected TV and Advertising

The future is bright for CTV as it continues to gain popularity among consumers and advertisers alike. According to a forecast from Insider Intelligence, spending on connected TV (CTV) advertising in the US retail industry will reach $813 million this year. By the end of 2027, that figure is projected to increase nearly sevenfold to $5.63 billion. Collaborating in this space (e.g., media partnerships) is crucial due to the numerous retail media partnerships and the growing investment in CTV advertising.

Let’s dive into a few additional trends and developments shaping the future of connected TV and advertising.

Clickable CTV ads

A key differentiator of CTV ads is that while they’re hyper-targeted, they’re unskippable. The problem? Viewers can’t click them and convert from their TV. To combat this, CTV platforms have introduced clickable ad formats that allow viewers to take immediate action upon seeing an ad.

Mobile devices like smartphones are already functioning remotes for smart TV applications like Amazon Fire TV and Roku. As they become increasingly integrated with Bluetooth/Wi-Fi, these mobile devices will eventually act as a way to “click” on an ad using the remote function. This allows viewers to take action on their phones without interrupting their viewing experience, making for a seamless transition from ad exposure to conversion.

Augmented and virtual reality

With CTV platforms becoming more advanced and capable of supporting interactive elements, augmented reality (AR) and virtual reality (VR) are becoming more prominent in CTV advertising. By incorporating these technologies, advertisers can create immersive ad experiences that engage and entertain viewers while also promoting their products or services.

Voice commands and voice recognition

Most applications have access to the microphone on the end user’s smart device. This provides an opportunity for CTV platforms to leverage voice commands and voice recognition in their advertising. Advertisers can target specific keywords or phrases used by viewers during voice commands to trigger relevant ads. And, they can understand viewer engagement and sentiment more completely. This not only makes ad targeting more precise, but also creates a more seamless viewing experience for users.

Final Thoughts

Connected TV advertising has come a long way since its inception, and it will only continue to evolve. With more advanced technology and capabilities, advertisers have endless opportunities to create engaging and effective advertising campaigns on CTV platforms. As the future of TV continues to shift towards connected platforms, it’s important for advertisers to stay informed and adapt their strategies accordingly. And as technology advances even further, we can only imagine what exciting opportunities lay ahead in the world of connected TV advertising.