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Karan Singh Karan is a highly experienced DevOps Engineer with over 13 years of experience in the IT industry. Throughout his career, he has developed a deep understanding of the principles of DevOps, including continuous integration and deployment, automated testing, and infrastructure as code.

Unlocking the Power of Connected TV: Strategies for Effective Advertising

4 min read

Have you heard anything about Connected TV? If not, you have definitely been watching it. Connected TV has woven itself into the fabric of our daily routines in ways we might not even notice. Catching up on beloved TV shows via a Smart TV, diving into video games on a PlayStation, or engaging in multiplayer battles on an Xbox — if any of these are part of your everyday life, then you’re already making connected TV a daily habit. 

We already know that in 2023, more households than ever before will give up the TV we’ve grown accustomed to since childhood: 68.7 million households switched to CTV, surpassing the 62.8 million households still subscribing to traditional cable TV. This change brought traditional over-the-air and cable TV’s share of total TV viewing to below 50% for the first time in TV history.

Armed with this information, we can claim that CTV has become a great advertising space that allows brands to reach consumers of all demographics, geographies, and behaviors. Therefore, here we will be talking about the use of CTV in advertising.  

What is Connected TV and Why is it Important?

Connected TV, or CTV for short, is essentially your television connected to the Internet. Well, it’s a little more complicated than that, as streaming services still have to be installed. Such a system allows you to consume streaming content on a bunch of different platforms like Netflix, Hulu, Amazon Prime Video, YouTube, and many others. And for advertisers, such a system gives you the ability to show ads where you’re sure to see them. After all, who among us doesn’t like to collapse in front of a TV screen after a particularly hard day, right?

CTV, among other things, departs from the standards of traditional television advertising, the essence of which is to adhere to the schedule and fit ads into the established pauses. With CTV advertising platforms, advertisers have a golden opportunity to show ads not by interrupting content on a schedule but, for example, when the user has stopped the show themselves. This makes CTV an ideal option for launching advertising campaigns, especially if you don’t want to annoy your consumers too much but still have access to a huge number of potentially new customers.

Growth Trends and Consumer Adoption

Connected TV has truly come a long way over the last few years, transforming from an intriguing new concept to a regular feature in our homes. This shift is largely thanks to everyone jumping on the smart TV bandwagon, the fact that high-speed Internet is now pretty much everywhere, and our ongoing love affair with streaming shows and movies.  

Let’s talk numbers for a moment — and not just any numbers. The latest data shows that there were 56.8 million connected TV users just among Millennials. And it looks like this number is only going to grow, with projections hitting 62.6 million by 2025. What’s even more interesting is that younger generations are hopping onto the CTV train at an increasing rate. 

So, what does this mean if you’re an advertiser? It’s pretty exciting, actually. With connected TV, you’ve got a golden ticket to reach an incredibly wide and varied audience. We’re talking about almost anyone you can think of. Now, that’s something to think about.

Best Practices for CTV Advertising

CTV advertising content can be quite different from what you’re used to, and it has its own characteristics and rules that you should definitely consider. That’s why we have prepared a few strategies that can help you get the best results when using CTV as an advertising platform.

Focus on high-quality visuals for large displays: Few people regularly watch Netflix from small phone screens. Usually, it’s widescreen TVs with high picture quality. This is important to keep in mind when creating ad creatives.

Customize Content Based on Viewer Interests: Delving into analytics to grasp your audience’s preferences is key. Customize your advertisements to resonate with their specific likes and interests. This approach can significantly enhance the connection with your audience.

Keep it short and sweet: Today, with everyone hooked on quick, punchy Reels and TikToks, getting your message across fast is really important. Try to make your ads snappy, aiming for that sweet spot between 15 and 30 seconds. Any longer, and you risk people scrolling right past.

Include interactivity: Interactivity always provides more opportunities for user engagement. If someone scans your QR code while bouncing around the screen in an advertising mini-game, that person is more likely to become your customer.

Emerging Trends in CTV Advertising

Connected TV is evolving at a sometimes intimidating pace, but overall, it’s a fairly predictable environment. Two major trends are currently reshaping the field: Addressable TV and Programmatic Buying, and we’re going to talk about these now.

Addressable TV gives you the possibility to deliver personalized ads directly to specific households using comprehensive data on demographics, behaviors, and psychographics. Imagine this: you’ve got a target in sight, and with precision targeting, your ads hit the bullseye. They reach exactly the folks who are most likely interested, precisely when they’re most engaged. 

Now, about Programmatic Buying. This game-changer in the ad world eliminates all the guesswork. Instead of manually placing ads, programmatic does it all automatically. Picture this: your ads seamlessly reach your audience across various CTV platforms in real time, with no handwork required. That is, programmatic is not so focused on household characteristics pre-defined in the system but rather on what is happening right now. For example, if a user is watching a show about DIY renovation, the programmatic will offer them renovation products when they pause the show. In addition, programmatic saves a lot of time because all deals are done automatically. Also, this strategy makes it much easier to scale campaigns, so it’s a great choice for you if you want to optimize your costs and increase your return on investment.

Predictions for the Future

Connected TV clearly has a great future ahead of it; it’s going to be with us for many, many years to come. At least as long as the Internet remains a relevant technology. As audiences continue to abandon traditional cable TV in favor of streaming services (let’s remember the 68.7 million households using CTV in the U.S.), the influence and scope of CTV will continue to expand. Well, the further advances in digital technology go, the more opportunities for connected TV to evolve even further. It is likely that 5G, artificial intelligence, and the development of virtual reality will bring some promising surprises in the near future. This marks an exhilarating period ahead.

So, to sum it up, Connected TV stands as a pivotal platform for marketers seeking to forge deeper connections with their target demographic. Don’t underestimate CTV if you’re a marketer and haven’t yet seen this area as an advertising platform. Connected TV could be the ace up your sleeve for drawing in and keeping customers, as long as you stick to the right strategies and let your creativity flow. We wish you all the success in your marketing efforts, and we hope this piece has been of great help.

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Karan Singh Karan is a highly experienced DevOps Engineer with over 13 years of experience in the IT industry. Throughout his career, he has developed a deep understanding of the principles of DevOps, including continuous integration and deployment, automated testing, and infrastructure as code.
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