Advertising through connected TV
Refining your CTV strategies for maximum impact
What is connected TV advertising?
Connected TV (CTV) is a type of advanced TV (ATV). It refers to devices embedded in or connected to a television to support digital content streaming through the internet. Instead of being limited to broadcast channels on traditional cable or satellite TV, viewers now use devices like smart TVs, streaming sticks, or gaming consoles to access streaming services, internet apps, and on-demand videos. They can stream digital content like their favorite shows and movies, listen to music, or browse the internet. CTV grew 10.9% in 2023 and is expected to grow 13.8% in 2024!
Connected TV advertising takes a more targeted marketing approach than traditional TV. CTV allows businesses to reach specific viewers with personalized video ads as they watch their favorite content on ad-supported apps like Hulu or YouTube, which helps them boost their campaign effectiveness. Considering that 88% of US households have at least one internet-connected TV device and 99% subscribe to at least one streaming service, CTV presents a tremendous marketing opportunity.
Advantages of connected TV advertising
CTV offers innovative solutions to boost brand exposure, engagement, and conversions. Explore some of the unique benefits of connected TV advertising below.
Reach a wide audience
Nielsen data shows CTV reaches 142 million American adults weekly. CTV ads connect businesses with diverse viewers across streaming platforms and devices who no longer watch or never watched cable TV, boosting exposure and engagement across demographics and interests.
Proactively move customers through the marketing funnel
CTV ads guide customers through the marketing funnel with engaging content. They raise brand awareness, target specific demographics for consideration, prompt action, and produce data insights to help marketers engage strategically and boost conversions.
Integrate shopping with entertainment
CTV marketing seamlessly integrates shopping with entertainment by allowing viewers to buy directly from ads while enjoying their favorite content. This creates an immersive shopping experience that drives conversions and maximizes consumer engagement.
Measure impact
CTV advertising offers more granular, accurate measurement than traditional TV. It allows for detailed tracking of video completion, website visits, and conversions so advertisers can make informed decisions, optimize campaigns in real-time, and improve ROI.
CTV is a type of advanced TV
Advanced TV refers to television advertising beyond traditional linear broadcasting that incorporates digital technologies for improved targeting, measurement, and interactivity. CTV is considered a subtype of advanced TV, as it uses internet-connected devices like smart TVs, streaming sticks, and gaming consoles to deliver targeted ads to viewers while they consume digital content.
Unlike traditional TV, CTV enables precise audience segmentation, real-time measurement of connected TV ad performance, and interactive ad experiences, which is why it’s widely considered a more effective and sophisticated form of TV advertising.
How CTV differs from other forms of advanced TV
Understanding the nuances of various types of TV advertising can be challenging, so here are a few distinctions between CTV and other forms of ATV advertising:
Linear or traditional TV
Linear TV refers to traditional broadcast television which provides a lower degree of specific audience targeting and personalization due to the wide audiences that watch cable TV.
Addressable TV
Unlike traditional TV, addressable TV allows advertisers to target specific households or viewers with personalized messaging, derived from audience insights. Addressable TV is the overarching term to describe one-to-one targeting available on various forms of advanced TV, including connected TV.
Over-the-top (OTT)
OTT is an extension of addressable TV that includes media content available on internet-connected devices. This includes streaming services like Netflix and video platforms like YouTube.
Video-on-demand (VOD)
VOD defines content that can be watched on demand at any time you please, including subscription-based channels like your connected TV platforms of choice (Netflix, Hulu, and HBO).
Data-driven linear (DDL)
Data-driven linear TV is the practice of using data and audience insights to inform traditional TV ad buys and strategy.
Converged TV
Converged TV refers to a broader concept in which traditional linear TV, digital, and streaming content are being integrated into a single viewing experience. This includes set-top boxes, smart TVs, and streaming services that provide a user with access to traditional and online content in a single device or platform. This concept is a result of user preferences of being able to access any type of media in a single location.
What’s the difference between streaming and connected TV?
While streaming refers exclusively to delivering digital content over the internet to give viewers access to video content on-demand, CTV refers specifically to televisions connected to the internet, which enable access to streaming services and apps directly on the TV screen. Streaming can occur on devices like smartphones and computers, but CTV usually involves watching digital content on a television with an internet connection.
What’s the difference between OTT devices and connected TV?
OTT is an umbrella term to describe all video and streaming content that is available over the internet. CTV is a device (usually a TV) that directly connects to the internet and allows a user to stream content through OTT platforms. For example, OTT platforms like Hulu and Netflix allow users to stream content over a smart TV, which is a CTV device.
CTV advertising vs. linear TV advertising
CTV advertising delivers video ads to viewers through internet-connected TV devices. Data from 2023 shows that almost six out of 10 US viewers find CTV ads more relevant than ads on linear TV, as CTV offers precise audience segmentation and real-time measurement of ad performance. Linear TV advertising involves airing commercials during scheduled programming on traditional broadcast or cable television channels. These TV ads reach a broad audience, while CTV ads offer individual viewers more personalized and interactive ad experiences.
Streaming TV ads
Video ads that play during streaming content on platforms like Hulu, Netflix, or YouTube and can be targeted based on user preferences and viewing behavior.
Banner ads
Ads displayed on the interface of streaming apps or services with static images or interactive elements — usually for brand awareness or promotional purposes.
Linear TV ads
Advertisements that appear during live TV broadcasts or live events are displayed during breaks in entertainment.
Interactive ads
Ads that let viewers click, swipe, or interact with on-screen elements to provide a more engaging experience than traditional ads.
High video completion rates
Video completion rates (VCRs) are central metrics in CTV advertising. A VCR indicates the percentage of viewers who watched your connected TV ad in its entirety. High completion rates suggest engaged audiences and effective ad content. Typically, marketers should aim for a VCR of at least 70% to 80%, which indicates the majority of viewers are engaged enough to watch the whole ad.
Real-time measurement
Real-time measurement helps you monitor campaign performance as it unfolds so you get immediate feedback on connected TV ad delivery, viewer engagement, and other metrics. This enables quick adjustments to optimize messaging, targeting, and budget for optimal outcomes.
Marketing campaign optimization
Analyzing metrics like viewer engagement, conversion rates, and return on investment (ROI) allows for continuous campaign optimization. By identifying trends, patterns, and areas for improvement, advertisers can refine their CTV strategies to maximize effectiveness and achieve their marketing goals.
Reach
Reach provides insights into the size and scope of your CTV audience. It reveals how many unique viewers were exposed to your ad so you can assess campaign penetration and potential impact among target demographics. A good reach goal depends on your campaign goals and target audience, but generally, you should aim for broad exposure among your desired demographics.
When to use connected TV
CTV can be particularly beneficial for various marketing campaign types and customer segments.
Seasonal promotions
CTV advertising is excellent for marketing seasonal promotions due to its broad reach and precise targeting capabilities. You can tailor your seasonal campaign to specific demographics or geographic regions to maximize the impact of your promotions during holidays or events.
For instance, a retail company planning a Black Friday sale event could use CTV to target consumers interested in holiday shopping by delivering tailored ads and promoting exclusive deals and discounts to audiences across streaming platforms. This could increase traffic to both online and physical stores throughout the holidays.
Targeted advertising
CTV's advanced targeting options make it ideal for targeted advertising initiatives. Whether you’re focused on demographics, interests, or behaviors, you can reach specific customer segments with personalized messaging to improve the relevance and effectiveness of your campaigns.
A travel agency looking to attract thrill seekers interested in outdoor experiences might use CTV's advanced targeting to deliver relevant ads to viewers who have previously researched adventure travel destinations or exhibited interests in outdoor activities like hiking or camping. The agency can generate leads and bookings more effectively by serving relevant ads to a highly engaged audience.
Brand awareness campaigns
For brand awareness campaigns, CTV offers extensive audience reach and engagement. Marketers can introduce their brand to diverse demographics through captivating video content to establish a strong presence and grow brand recognition among viewers.
Suppose a fashion retailer wants to introduce a new clothing line targeting young, fashion-conscious consumers. Through CTV, they could launch a brand awareness campaign with visually appealing ads showcasing the latest trends and styles. By strategically placing these ads during popular fashion shows or lifestyle content, the retailer would be better equipped to capture the attention of their target demographic, drive brand engagement, and attract new customers.
Product launches
CTV is well-suited for product launches because of its ability to deliver immersive video experiences. Advertisers can generate excitement and engagement around new products by targeting relevant audiences and providing interactive ad formats that facilitate exploration and purchase decisions.
An example of a product launch advertised on CTV could involve an automotive company unveiling a new electric vehicle (EV) model. The company could target environmentally conscious consumers and tech enthusiasts interested in innovative transportation solutions by creating immersive video ads highlighting the EV's features and benefits. These ads can be strategically placed on CTV platforms to coincide with industry events or EV-related content to boost visibility and generate buzz around the product launch.
CTV audience targeting strategies
As an advertiser, there are several ways to categorize and analyze consumers for your CTV advertising campaign, depending on your goals, audience characteristics, and the nature of your services or products.
Segment-based targeting
Segment-based targeting involves dividing your audience into groups by shared behaviors or characteristics. For example, promoting a fitness app might involve targeting segments like fitness enthusiasts, beginners, or people interested in losing weight. You can adjust your ads to each segment's specific interests and preferences to increase the relevance and effectiveness of your campaigns.
Demographic targeting
Demographic targeting focuses on reaching audiences based on demographic factors like age, gender, income, and household composition to reach specific groups that align with your target market. For instance, if you're advertising luxury skincare products, you might target affluent individuals in their middle age who are more likely to have the purchasing power and interest in high-end skincare. Understanding your target demographics enables you to create resonant ads for these groups.
Behavioral targeting
Behavioral targeting involves analyzing consumer behaviors and preferences to deliver personalized ads. You can target audiences based on browsing history, content consumption patterns, purchase intent, and other behavioral data to get ads in front of the people most likely to engage with your brand. If you're promoting a movie, you might target individuals who have previously watched similar content, visited streaming-related websites, or demonstrated an interest in specific genres.
Hyper-localized targeting
Hyper-localized targeting allows you to deliver ads to audiences in specific geographic regions. It’s ideal for businesses promoting location-specific offers or services to audiences in particular geographic areas. For example, a restaurant chain might target audiences near its locations with ads promoting special discounts or new menu items to maximize the impact of its advertising efforts.
How to improve your CTV advertising
Recent surveys show that more marketers than ever are investing in CTV advertising because it offers better and more advanced audience targeting, according to 46% of marketers surveyed. Experian, a top provider of data and identity services in television advertising, can help you take your ad strategies to the next level. We work with key players in the TV industry to provide you with exceptional marketing opportunities.
Our data and identity solutions enable you to understand your audience better and improve targeting, which leads to higher engagement and campaign performance. We provide enhanced audience insights, improved targeting capabilities, and privacy-safe solutions that help you excel in television marketing. Our focus on compliance, data security, and industry-leading expertise ensures our television marketing solutions deliver impressive outcomes and maximum engagement.
Enhance your audience insights
Experian's data integration offers deep insights into audience demographics, geography, and attitudes for advertisers. This knowledge helps you understand your target audience, ultimately informing better targeting and segmentation decisions.
Use accurate consumer data
Using our data assets can help you improve your targeting abilities and make your campaigns more efficient. With our added insights, you can effortlessly reach audience segments that are most receptive. Our high-quality data is usable across all marketing platforms, including linear and CTV, helping you target your current and potential customers no matter where they consume media.
Improve targeting with identity resolution
We offer comprehensive audience insights and precise attribution by matching any ID with known or unknown data and revealing the best marketing strategies for your campaigns. Combining nimble identity resolution, targeted measurement, and improved attribution, we lay the groundwork for your marketing efforts and help you optimize your campaign performance.
Experian offers data and identity solutions to enhance CTV ads
If you need help improving your CTV campaigns, Experian provides all the essential tools, including marketing data and robust audience segments for enhanced targeting, attribution for better CTV campaign measurement, and identity resolution to get a holistic audience view for reaching and engaging with consumers across channels and devices.
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