Connected TV Advertising Explained
In today’s world, people aren’t watching TV like they used to. More and more viewers are ditching traditional cable and switching to streaming services like Hulu, Netflix, and YouTube TV. This shift has opened a huge opportunity for businesses to reach their audience in a new way—Connected TV (CTV) advertising.
So, what exactly is CTV, and how can it help your business grow? Let’s break it down.
What Is Connected TV (CTV)?
Connected TV (CTV) refers to internet-connected devices like smart TVs, gaming consoles, and streaming devices (like Roku and Amazon Fire Stick) that allow users to stream video content online. Unlike traditional cable or satellite TV, CTV lets viewers watch their favorite shows on demand.
With more people moving away from traditional TV, CTV has become one of the most effective ways to advertise and get your message in front of the right audience.
What Is Streaming TV?
Streaming TV (STV) is the way video content is delivered over the internet instead of through cable or satellite providers. It includes live and on-demand content, such as:
TV shows
Movies
News programming
Sports events
STV and CTV are closely related, but there’s a key difference:
STV (also called OTT – Over-the-Top TV) refers to how video content is delivered over the internet.
CTV is the device used to watch that streaming content, like a smart TV or a streaming stick.
What Is Connected TV Advertising?
Connected TV (CTV) advertising is digital advertising that appears within streaming content on CTV devices. It includes:
In-stream ads within TV shows or livestreams
Interactive ads prompting viewer engagement
Online video (OLV) ads that run within video content on websites
Brands use programmatic advertising to target audiences across various platforms like Amazon Streaming TV.
Advantages of Connected TV Advertising
Traditional TV advertising is expensive and often wastes money by showing ads to the wrong audience. CTV advertising, on the other hand, is more precise and cost-effective. Here’s why it’s a game-changer for businesses:
1. Highly Targeted Advertising
Unlike traditional TV, where ads are shown to everyone watching a channel, CTV allows businesses to target specific audiences based on factors like:
Location
Age
Interests
Viewing habits
This means your ad gets in front of the right people, not just random viewers.
2. More Affordable Than Traditional TV Ads
With CTV, you don’t need a massive budget to run a successful campaign. You only pay for ads that actually reach your ideal audience. No wasted ad dollars on people who aren’t interested in your product or service.
3. Higher Engagement Rates
Many CTV ads can’t be skipped, making them more effective than social media or YouTube ads. Plus, because they appear within high-quality content, viewers are more likely to watch and engage.
4. Better Measurement & Insights
CTV advertising provides detailed performance data, including:
Video Completion Rate (VCR): How many viewers watched your ad to the end.
Cost per Completed View (CPCV): How much you paid for each fully watched ad.
Brand Lift Metrics: How your ad influenced brand awareness and perception.
Website Visits & Conversions: See if people visited your website after watching your ad.
This level of tracking and reporting helps you optimize your campaigns and maximize ROI.
CTV Metrics and Measurement
CTV uses an automated system to provide advertisers with optimized ad prices and placements. Key metrics include:
Video Completion Rate (VCR): Measures how many viewers watched the full ad.
Cost per Completed View (CPCV): Determines the price per fully watched ad.
Brand Reach & Lift: Evaluates audience scope and brand favorability.
New-to-Brand Metrics: Tracks customer engagement post-ad view.
STV Advertising Benefits
CTV advertising offers a seamless shopping experience by integrating calls to action (CTAs) within ads. This encourages immediate consumer action without disrupting their entertainment.
How Does Connected TV Advertising Work?
Getting started with CTV advertising doesn’t have to be complicated. Here’s how to launch your first campaign:
1. Define Your Goals
What do you want to achieve? Whether it’s brand awareness, website visits, or increased sales, having clear goals will guide your strategy.
2. Identify Your Target Audience
Decide who you want to reach based on demographics, interests, and behavior. The more specific, the better.
3. Create a Compelling Ad
Your ad should be short, engaging, and visually appealing. Aim for a 15-30 second ad that delivers a clear message and call to action.
4. Choose the Right Platform
Work with an advertising partner like Chicago Style Media to distribute your ad across popular streaming services like Hulu, Pluto TV, and Amazon Fire TV.
5. Monitor & Optimize Your Campaign
Track your ad performance and adjust your strategy based on real-time data. This ensures you get the best results for your budget.
Frequently Asked Questions (FAQ) About CTV Advertising
Q: How much does CTV advertising cost?
A: CTV advertising is more affordable than traditional TV ads. Costs vary based on targeting, platform, and campaign goals, but many businesses find it cost-effective since they only pay for ads shown to their ideal audience.
Q: Can small businesses use CTV advertising?
A: Yes! CTV advertising isn’t just for big brands. Small and local businesses can use it to target their community and attract customers.
Q: How do I measure CTV ad performance?
A: CTV provides detailed analytics, including views, video completion rates, conversions, and more, allowing you to track success and adjust accordingly.
Q: What types of businesses benefit most from CTV ads?
A: Any business can benefit, but it’s especially useful for local businesses, e-commerce brands, service providers, and franchises looking to reach targeted audiences.
Final Thoughts: CTV Advertising Is the Future
Connected TV is revolutionizing how businesses reach their audiences. With more people streaming their favorite shows, CTV advertising offers an affordable, targeted, and effective way to get your brand in front of the right people.
Ready to launch your first CTV campaign? Chicago Style Media can help you craft a strategy that works. Contact us today to get started!
