The stats are in. Media consumption is up significantly since the COVID-19 outbreak, and it is primarily video-based. According to Global Web Index, 87% of U.S. consumers say they’re consuming more content, and online TV streaming takes a top spot for overall increased media consumption.
The good news is that it’s easier and more affordable than ever to reach this captive audience of media consumers by advertising on TV. With Connected TV, advertisers representing brands of all sizes can reach their target audience with the same ease and budget as with other digital advertising tactics.
Connected TV combines the power of data-driven digital marketing with modern TV advertising. Read on for a quick overview of how Connected TV works and the four main benefits of this quickly evolving advertising tactic for marketers and media buyers.
How Connected TV Advertising Works
Connected TV is any type of TV that can be connected to the Internet and can stream digital video. Connected TV is a subset of Over-the-top (OTT) TV, which includes apps and services that don’t require traditional cable subscriptions.
Connected TV ads are sold as impressions using advanced data and automated software, reaching viewers who stream content on demand. Ad spots are purchased when a viewer matches your desired audience. Creative messaging then appears in a 100% viewable, full-screen environment.
- Viewers stream content live or on-demand to their Connected TV device (e.g., Amazon Fire TV, Apple TV, or Roku TV).
- An ad spot is purchased when the viewer(s) match your desired audience.
- The ad appears in a non-skippable format in real-time. Formats include 10-second, 15-second, and 30-second video ads.
- Performance and analytics are captured and reported back to you.
Benefit 1: Increased Access
When it comes to TV, there are more options now than ever before. Viewers now have more options for TV content. Networks now have more options to develop original programming. And marketers and media buyers now have more options for reaching their desired audience. According to eMarketer, the amount of original scripted TV content has nearly doubled in seven years.
This influx of options has leveled the playing field, enabling even small and mid-market brands to advertise on TV. There are now significantly more opportunities for brands to reach and engage with a captive audience committed to the content they are consuming.
Benefit 2: Heightened Targeting
Advertising on Connected TV offers the same specific audience targeting abilities as other direct marketing tactics, which include first-party targeting, third-party targeting, lookalike audience targeting, retargeting, and even cross-device targeting. Marketers can create customized audience segments based on geographic, demographic, and programming criteria.
Ads can also be served based on specific parameters, like device type or make and model, frequency capping, and time and day. And with additional placements available, marketers can reach consumers on phones, laptops, and gaming consoles as well as those watching TV.
Benefit 3: Reduced Spend
Because Connected TV enables marketers to reach a hyper-targeted audience with hyper-relevant messaging – using first-party and third-party data to target audiences and tailor campaigns – it reduces media waste by reaching only relevant viewers and households.
Benefit 4: Improved Attribution
Success can be easily measured with a campaign’s conversion pixel, which will track website engagement and online behavior. Track the performance of your Connected TV campaigns with clear metrics, including viewer demographics, online behavioral data, and offline data like store visits or sales.
Connected TV can be easily integrated into a full multichannel campaign or even as a complement to traditional TV advertising. With the audience targeting and attribution abilities of digital marketing, Connected TV delivers the precision of digital with the effectiveness of TV.