Connected television (CTV) is invading our homes and revolutionizing our content consumption habits. For advertisers, this medium is an excellent opportunity to reach consumers who are increasingly shunning traditional TV. What exactly is CTV? Why should you consider including it in your communication strategy? How can you ensure that your ads are really effective? You’ll know everything by reading our article!
OVERVIEW
What is connected TV?
The definition of CTV
Connected TV is most often referred to by the acronym CTV which we will use in the rest of this article.
A connected TV is simply a TV screen that has an Internet connection.
Recent models have this feature natively integrated. We speak then of “Smart TV”. Others benefit from it through devices such as a box operator, a box (Apple TV, Chromecast …) or even a game console (Playstation, Xbox …).
Note that CTV is both the device and the broadcasting mode. The subtlety here is that you can watch CTV content on a television, but also on a computer, a phone, etc. Advertising on this medium allows you to reach an audience through all these devices.
Linear television, streaming, OTT: What are the differences?
The world of television is rapidly evolving and it is sometimes complicated to differentiate between certain terms that coexist. Let’s take the time to understand those closely related to CTV.
What is linear television?
Linear television is the traditional system in which the viewer watches a program at the time of its broadcast and on its original channel.
It includes both public channels and those owned by private operators accessible by terrestrial channel, cable or satellite.
What is streaming?
Streaming is a technology for broadcasting multimedia content via the web, live and without downloading data.
By abuse of language, we speak of “CTV content” to designate streaming, especially in the English-speaking world. But there is a subtlety: all CTV content is streamed, but not all streaming is necessarily CTV content. For example, a video viewed directly on YouTube or a social network is not considered CTV content.
What is OTT?
OTT stands for “Over The Top service” and delivers audiovisual content directly via the Internet without going through a traditional distribution operator.
OTT platforms (Netflix, Disney+, Orange TV…) offer both streaming and on demand (VOD). Their subscribers can consume the streaming content on various devices: TV, phone, computer…
SO what does this have to do with CTV?
Now is the time to follow!
CTV allows you to consume linear TV content, connect to OTT platforms and browse the web at the same time.
In concrete terms, you can cook following a YouTube tutorial before following the live events of a TV show, then finish the evening in front of a streaming episode of the latest Netflix series. Or two, or three… we know how it goes!
In fact, VTC is revolutionizing the way we consume video content. No more having to choose between two simulcast programs. Or missing an episode of a series because of a busy schedule. Welcome to the era of on-demand content and binge-watching!
What are the prospects for advertising on CTV?
There are excellent reasons to invest in connected TV for your advertising strategy. That’s what the second part of this article is all about. But let’s not forget that this format is relatively new and still faces several challenges:
👉 The majority of households still watch traditional broadcast programs. However, figures show that this dominant position should quickly be reversed, both in terms of active users and in terms of advertising spend. “Cord-cutting”, i.e. consumers switching from satellite or cable to CTV, is increasing. OTT platforms are offering more features and content for less money.
👉 OTT services are multiplying, creating more advertising inventory for advertisers. Fortunately, the market is adapting and it is now easier to deliver ads across multiple platforms simultaneously.
👉 Most subscriptions offer multi-account and multi-screen to accommodate all members of the household. But we all know that in reality, accounts can be shared beyond the household, which can make some VTC ad targeting methods unreliable. Platforms are working to limit this with new subscription models.
How do you advertize on CTV?
Historically, OTT platforms generate most of their revenue from user subscriptions. Today, most are looking at monetizing their content through advertising. For example, Netflix offers a discounted subscription in exchange for running ads.
In fact, buying and serving ads in CTV works much the same way as in other digital media. Much of it is done programmatically, such as on the DOOH format for example.
There are different interlocutors that allow you to broadcast your CTV ads:
DSPs (Demand-Side Platforms)
These platforms, such as TheTradeDesk or Xandr, manage CTV inventories and put buyers and sellers in contact. Transactions are made via automatic auctions in programmatic.
OTT platforms
OTT services generally have their own advertising network to manage the broadcast spaces they own.
CTV platforms
Some Smart TV providers are also developing their own CTV content and ad network. For example, Samsung Ads manages the advertising inventory of Samsung TV Plus.
👉 Specialized agencies
If you don’t have the resources in-house, you can delegate this work to professionals in the CTV format.
6 good reasons to use CTV for your advertising campaigns
Clearly, it is becoming complicated to ignore CTV in advertising. The format will supplant traditional television in the next few years for technological reasons, but also and above all for behavioral reasons.
The way we consume content has completely changed. Scheduled broadcasting, which is too rigid, is giving way to on-demand broadcasting, which is much more in line with our modern habits. Younger people, your customers of tomorrow, already don’t consume linear TV anymore.
VTC brings many benefits for advertisers, broadcasters and viewers. Here are 6 good reasons to convince you that it is high time to consider it in your communication strategy!
Reason #1 – For its high reach
In the US, people spend an average of 1h20mn a day watching CTV content and its reach is clearly superior to traditional television.
Why is this? First, because CTV content is consumable on almost all devices. Smart TV, computer, tablet, phone.
It is important to understand that today, the TV screen is no longer only present in the living room of the family home, even if it remains the preferred device for consuming streaming content and allows to reach several individuals at the same time.
Secondly, the content is accessible at any time as long as you have a sufficient connection. We no longer watch only entertainment programs in the evening after a day of work. With a smartphone, it is possible to watch them on the road, for example. The notions of prime-time and live are becoming obsolete.
Broadcasting slots are not a priority selection criteria in CTV. Even the biggest live events can be watched in replay today. Instead, you need to think of your broadcast strategies around the most popular content among your targets.
Reason #2 – For its more attentive audience
One of the great things about CTV advertising is the visibility of the ads. They are much more prominent than on other formats.
Ads are always shown in full screen. This means that 100% of the pixels are in the viewer’s angle of vision, without the need for any action on their part (scrolling, clicking to expand, etc.). The phenomenon of banner blindness that reduces our attention to digital ads is thus bypassed in CTV.
In addition, in almost all cases, the ads cannot be skipped. When it is possible, viewers will have to watch at least the first 5 to 10 seconds of ads, which rarely exceed about 10 seconds. An IAB report even puts forward the impressive figure of 95% completion rate on CTV ads. This is far higher than similar formats such as pre-roll ads on YouTube.
Finally, the format is much more engaging thanks to the generally more polished creatives, with perfect image and sound to fit the broadcast universe.
Reason #3 – For its precise targeting
In traditional TV, advertisers have to predict which channels and programs will be viewed by their preferred targets. This method requires mass targeting, which is not very effective and requires large budgets.
Thanks to data and programmatic, CTV allows to target very precisely an audience that decides itself what it wants to watch and when. This is ideal for reaching consumers in an environment where they are naturally more receptive and engaged.
The format generally offers even more targeting options than with social media advertising. Plus, CTV doesn’t use cookies, making it a lever already suited to the future of marketing that is just learning to live without them.
As we have seen, the CTV environment is fragmented due to the multitude of players present on the market. For this reason, we advise you to favour audience-based targeting. Data such as IP address allows you to reach your targets at any time, regardless of the platform and the type of device used.
Audience-based targeting parameters include:
First-party data: this is the data you have (visit to a page on your site, order placed, download…) ; Third-party data: which comes from third-party sources (age, gender, income, household composition, purchase intention…); Lookalike audiences: based on first-party data to identify similar profiles.
Some services offer technologies such as “Dynamic Ad Insertion” or “Server-Side Ad Insertion” that allow you to deliver your ads even more precisely. Algorithms will select in real time the best ad to push to each user according to the data at their disposal: location, history and preference in terms of content, socio-demographic criteria, etc.
In the same way, multi-account subscription offers also strengthen the targeting capabilities in CTV. With them, you can reach each family member individually on their screen.
Reason #4 – For its impact on your brand
Although they can’t ignore ads, users tolerate them much better on CTV than on any other media.
According to a measurement conducted with our client Freewheel, 67% of French people say they don’t mind watching ads to access free content. The IAB report confirms that these forced ads do not prevent high engagement rates and positive brand gains.
A study conducted by Statista in the US also shows that 71% of people are more likely to tell their friends and family about a brand after seeing it on a CTV ad.
These figures are explained by the powerful targeting on this format which allows to deliver more easily personalized messages at the best time.
Before we move on, we’ve compiled some tips for creating your ads:
4 tips for impactful CTV ads
Tip #1 – Keep it short
Viewers can’t get past your ads, but don’t take the opportunity to unnecessarily lengthen your messages. Instead, keep it simple and effective for best results. The ideal timing of a CTV ad is 15 to 30 seconds to captivate without becoming annoying.
Tip #2 – Be direct
The very first few seconds must make people want to stay in front of the screen to see the end. Don’t just praise your product. Use the usual mechanisms: inspire, educate, make people dream or offer a solution to a problem. You’ll prevent viewers from taking the opportunity to check their notifications instead of keeping their eyes glued to your ad.
Tip #3 – Adapt to the context
Your ad is bound to be more or less disruptive to the user’s viewing experience. Limit negative feelings towards your brand with a message that is consistent with the content. For example, humorously integrate your brand into the universe of the series being broadcast.
👉 Tip #4 – Reduce the frequency of repetition
As you know, the repetition of your ads is an important factor in generating memorability. But keep in mind that in CTV, users are very sensitive to them because they can’t ignore them. As we have seen, the format naturally generates more attention and impact. To help you, most platforms automatically adjust the broadcast frequency to avoid frustrating viewers.
Reason #5 – For optimized investments
By combining better targeting capabilities, much larger inventories and data-driven programmatic buying, CTV ad budgets are much lower than linear TV.
In fact, CTV advertising costs are much closer to the amounts we are used to on other web formats.
A CTV advertising campaign offers the same flexibility on your media buy as with any other digital channel.
You control your results in real time, which allows you to modify your targeting criteria, your messages or reallocate your budgets at any time to preserve your investments.
The low cost of entry, flexibility and potential make it a must-try format for any advertiser and the agencies that advise them.
Reason #6 – To effectively measure your advertising performance
In general, in CTV you can easily obtain metrics such as total reach, completion rate or cost per view from the agencies that manage your campaigns.
These metrics are interesting to identify in real time the most efficient ads in terms of visibility and conversion and adjust your budgets accordingly.
However, they are not enough to understand precisely why they worked or not, nor to measure their real impact on your consumers and on your brand. This information is crucial to calculate an ROI that proves the quality of your work.
This is why it is important to complete your metrics with concrete and operational indicators: memorization, attribution, impact on brand image, purchase intent…
By launching a brand lift (or advertising post-test), you get a global vision of the performance of your campaigns.
Happydemics is the leader in advertising effectiveness measurement. With our platform, you can go even further, and in complete autonomy:
👉 Launch your brand lifts in a few clicks using templates adapted to your brand objectives: branding, perception, performance, loyalty…
👉 Prove the real impact of your campaign by comparing the perception of individuals exposed to your CTV campaigns with a non-exposed pool.
👉 Compare your results with a benchmark of similar campaigns in terms of objectives, sectors of activity and media.
👉 Receive insights and optimizations to improve the ROI of your future communication actions.
