Getting Started with Connected TV (CTV) Advertising

More and more households are dropping traditional cable subscriptions in favor of streaming platforms and digital services, and the very definition of television is changing as we know it. With the Superbowl right around the corner, an increasing number of viewers this year will be watching the game through such outlets; according to Statista, 5.7 million viewers watched the Tampa Bay Buccaneers claim their second Super Bowl title last year through streaming services and platforms, opening new doors for advertisers within. The opportunities are only going to get bigger and better in 2022. 

Due to this surge in streaming service subscriptions, it’s no wonder that brands are jumping on this opportunity to ride this marketing wave into the future of targeted ads. No longer are the days of traditional time-slot ads; CTV and OTT ads are gaining popularity because of their ability to drive immediate sales and embed targeted advertising directly within these platforms. These streaming services have completely shifted how we use our televisions and how they operate – Smart TVs are in, and for good reason; they let users maintain a traditional cable subscription while still having access to all the outside content as well. Contact the media experts at Alpha Tango Media today to get started.

What Is the Difference Between Linear TV, CTV and OTT?  

Linear 

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Linear TV, and what we traditionally refer to as television, involves a live broadcast of content to your television. This broadcast is accessed via cable subscription or satellite provider, with content and ads being delivered within specific timeslots throughout the day and night. If you were to advertise within, you would need to purchase a specific air-time spot. It is more difficult to measure the engagement your ad receives on linear TV; just because viewers have seen your ad, does not mean they have taken follow-up action after viewing. In addition to being tricky to measure, these ads tend to be expensive, and are a less efficient means of reaching a specified target audience. This is why CTV and OTT advertising are an excellent means for getting your brand seen by desired audiences, and it’s much easier to track their success.   

OTT 

OTT, referred to as Over the Top TV, is pulled from online sources and casted/streamed directly onto any device with a screen; this means that the content source is the internet. It is the method in which services are delivered to the audience. There are 4 OTT services that make up 72% of total streaming watch time; Netflix, Hulu, YouTube, and Prime Video. The difference between OTT ads and linear television ads are that viewers typically must interact with the ad or watch it until completion in order to view the desired content – so you are getting your ads right in front of your desired target audience and have their undivided attention on your brand message. An example of an OTT ad would be an unskippable commercial half-way through watching an episode on your favorite streaming service. These ads take up the entire screen, much like traditional ads, and must be watched until completion to move on to or continue with the content.  

OTT content can also be consumed in many other methods outside of your television; you can watch on your smartphone, laptop, tablet, and more. Devices such as Chromecasts and Amazon Firesticks allow you to stream video content from your smartphone or tablet onto your TV. These ads have a nearly perfect watch rate, as services require free users to watch ads all the way through, and you can have your ad in front of highly popular networks, series, and content without having to worry about primetime television and spots.   

CTV 

CTV, also known as Connected TV, generally refers to the device that users watch or stream content through. This could be your Smart TV, laptop, iPhone, tablet, or even a built-in connection provided through a device like a Roku or Firestick.  

CTV advertising, or Connected TV Advertising, is a method of advertising within OTT advertising where brands market through smart TVs and OTT devices. In order words, CTV refers to televisions that can access outside materials, such as the internet, outside of what is provided via cable.  Some examples of CTV devices are gaming consoles, smart TVs, and connected devices/sticks/dongles to stream from your personal devices directly to the television. CTV advertising targets these kinds of consumers using CTV methods of watching television or accessing OTT content. These ads are typically short, skippable ads displayed before or throughout the user’s session. For example, those Hulu ads that you see throughout your watch experience are highly efficient at accessing an audience outside the scope of traditional TV. CTV advertising is superior for its targeting capabilities and reaching a niche audience that traditional methods can no longer grasp. It also offers brands highly measurable results. These metrics can analyze video completion rates, and the end-to-end customer journey from viewing the ad to making a purchase. More and more families and users are dropping their cable subscriptions in exchange for streaming services and OTT TV, meaning the audience for CTV ads is ever-growing. 

Photo via Alejandro Escamilla alejandroescamilla, CC0, via Wikimedia Commons

In summary, OTT is the delivery method and CTV is the device. Therefore, you could use a CTV device to stream OTT content. Both kinds of campaigns are highly measurable, which is an excellent tool when it comes to analyzing success. The impact and reach of your ads can be measured via video completion rates, clicks, ad delivery by device, peak performance times and days of the week, viewer demographics and frequency, and more. This information can further help you understand your target audience, and what’s working for your strategy. 

In 2021, half of YouTube viewers in America accessed content through a Smart TV. Surveys and purchasing data from Business Wire in 2021 support the claim that CTV ads drive sales and are quickly becoming the norm for digital advertising today. These ads are so successful because of the audience’s willingness to view and interact with these ads in exchange for lower subscription rates, less ads throughout their viewing experience, and the ability to access content more quickly. Lots of ads allow viewers to get to the content faster in exchange for interaction or viewership – this way, ads are becoming more integrated and acceptable within the viewing experience. These are specifically measurable outcomes that we can then use to further target ads. CTV ads can run for as long as you’d like as there are no timed programming restrictions – however, these ads average around 15-30 seconds. They take up the entire viewer’s screen, meaning the ad is unmissable and must be watched until completion to move on. This results in high completion rates, as well as high creative impact on the senses when ads call for interaction.  

Which Businesses can Benefit from OTT and CTV Advertising? 

For-profit, retail and sales driven brands are benefitting the most from OTT and CTV ads. The ability to target niche audience groups that match a brand’s desired consumer base has proven to be extremely successful and drive immediate sales. Even smaller brands can reap the benefits of these methods, as these ads allow for extended brand reach, increased awareness and impressions, as well as lead generation. However, one of the barriers for smaller businesses are the costs associated with advertising within these highly popular streaming platforms and services. YouTube is a more affordable alternative for these smaller brands. Due to the pay-per-view pricing system, you can establish a daily budget for your ad campaign and pay according to the number of views your ad gets until that budget is reached. YouTube has Google demographics integrated within the platform, meaning these ads will be highly targeted towards your desired audience and have the tools to measure success.  

Best Practices for CTV Advertising 

Next-level advertisements can now be created at our fingertips through combining the powers of the big screen with highly efficient audience targeting and interactive capabilities. Here are four best practices for making the most of your CTV advertising campaigns:  

Photo via Fabian Irsara firsara, CC0, via Wikimedia Commons

1. CTV and OTT campaigns need to be strategically planned to optimize their reach and effect. The most important step is evaluating who your target audience is going to be and understanding how to appeal to them. You’ll need to conduct some key research to further understand their likes, dislikes, and habits. A helpful place to start: what devices are your target consumers using the most? What platforms are they subscribed to? What kind of content do they watch?

2. Make sure you keep up with popular trends; staying in-the-know on current and rising trends will keep you brand relevant and relatable to your audience. Interactive, highly visual and engaging digital content has skyrocketed in popularity since the pandemic began, so making sure that your ads adhere to these parameters is important. In addition, you must keep in mind that not all viewers will see your ad on a television screen. Your ads need to be optimized to be successfully viewed across different platforms and interfaces.  

3. Implementing a clear call to action within your ads will keep you fresh in the minds of your viewers. Since most viewers can’t click to visit your site through the ad (dependent on the kind of ad and which platform it is) having a clear message and CTA will further push these viewers to take the next step with your brand. 

4. Ad frequency and consistency is key to customer recall of your brand. However, pushing out too many ads becomes repetitive in the minds of consumers, and can lead to frustration associated with the brand if they’re seeing too many commercials. You can avoid oversaturation by setting frequency capping for your ads. At the end of the day, you want your brand to be seen by as many people as possible but recall and opinion of your brand is much more important. We want to keep this reputation positive by finding the happy medium. 

Contact Alpha Tango Media Today Get Started With Connected TV (CTV) Advertising

If you are ready to get started with connected TV (CTV) advertising, do not hesitate to contact the media experts at Alpha Tango Media today. During a private consultation, we can help you strategize and develop a brand story that truly resonates.