Did you know that 80% of the U.S. population, or 260 million people, have at least one connected TV device in their home? As a business owner, this can be a great way to get the word out about your company, driving leads, and sales.

But what exactly is connected TV? For many, this is a new term that’s a little confusing.

Don’t fret. In this post, we’ll outline everything you need to know about connected TV advertising and how it can benefit your business. Keep reading to learn more.

What Is Connected TV?

Let’s start with the basics. What is connected TV?

Here’s a good definition: connected TV (otherwise known as CTV) is television-style content that’s streamed over the internet instead of a cable or satellite service.

As you probably know, cable and satellite TV subscriptions have been declining for a few years now. On the other hand, CTV usage is going up.

Say hello to an amazing advertising opportunity.

Connected TV Advertising Explained

Now let’s talk through connected TV advertising: what exactly is it?

Basically, advertising on CTV means you’re purchasing video ad space that displays on internet-powered streaming devices and apps.

For example, say someone is watching Hulu on their iPad. One example of a connected TV ad is the commercial that comes up during a break on the show.

The best part about CTV is that it takes traditional TV advertising and takes it to the next level. Because it’s internet-based, you have access to the same precise targeting methods available on other digital channels. It’s a win-win.

Here are some of the most common devices that can handle CTV content:

  • Desktop computers
  • Laptops
  • Tablets
  • Smart TVs
  • Amazon Fire Sticks
  • Apple TVs
  • Playstations
  • X-Boxes

And that’s just some of them. Each year, more and more devices are capable of streaming connected TV content, expanding your potential reach from an advertising perspective.

How Connected TV Advertising Works

At the core of CTV advertising is automated software. These programs will send out our ads to viewers as they’re watching CTV, all while gathering and tracking data.

Say goodbye to the days of airing a TV commercial with no real idea of how it performed or who saw it. With connected TV, you can understand how your ad performs.

Here’s a breakdown of the process.

First, you create an ad that markets your product or service. Make sure it’s engaging and attention-grabbing.

You then decide on the characteristics of your preferred audience, which could include age, gender, location, interests, device type, and more. The software will then find people who fall into those categories and show your ad to them. As the ad is viewed, important metrics are captured, like reach and frequency which will help you understand performance.

It’s also important to understand that your ad can run at different times during the program. Pre-roll ads come on before the main content begins streaming. Mid-roll show throughout the show.

Typically, mid-roll is seen as more popular and competitive, making it more expensive.

What are the Benefits of Connected TV Advertising?

Now let’s talk about the benefits of using CTV to market your company. What are they?

It’s Huge with Millennials

If you’re going after millennials in your marketing, then CTV is a no-brainer. It’s super popular with them.

In fact, in the U.S., millennials are 67% more likely to be in connected TV-only households. This means that you’d have an incredible opportunity to get your message in front of this age group.

You Can’t Skip Them

In today’s digital landscape, skippable video ads are a common thing. Youtube, for example, often allows viewers to skip through ads they aren’t interested in.

One of the benefits of CTV ads is that viewers can’t skip them. They must be watched all the way, which means you’re able to convey your full message.

And thanks to its targeting capabilities, your message will get sent to the right people at the right time, in its entirety. What’s not to like?

It’s More Affordable than Traditional TV Advertising

Another great benefit is that CTV is usually more affordable than traditional TV ads. This is because you can more precisely target your ads to people who are interested.

With regular TV ads, you’d have to spend a lot more money to achieve the same impact per viewer. In other words, you have to get your commercial in front of more eyes to have the same impact with normal TV ads. And this adds up.

CTV is Growing

Last but not least, connected TV is continuing to grow. More and more entertainment is being created for connected formats and people are using it more and more as well.

For example, let’s think of all of the CTV options available these days:

  • Netflix
  • Hulu
  • Amazon Prime
  • CBS on Demand
  • NBC’s streaming service
  • Disney+
  • ESPN and other sport streaming packages
  • And many more!

Plus, this trend will continue to grow. So why not get in now?

Connected TV Advertising: Next Steps

There you have it: the ins and outs of connected TV advertising. We’ve gone over what it is, how it works, and the main benefits.

What’s left is for you to make a decision. Is this advertising format a good fit for your brand?

If so, great. Let’s get working. We’d love to help make your vision a reality.

Get in contact with our team today for more information. We can’t wait to help!