In the rapidly evolving landscape of digital advertising, Connected TV (CTV) has emerged as a pivotal channel for marketers aiming to reach audiences in a more targeted and engaging manner. As we delve into the intricacies of CTV advertising, understanding its trends, recommended budgets, and strategic approaches becomes crucial for brands looking to stay ahead in the game.
Understanding CTV Advertising
Connected TV refers to any television that can connect to the internet and stream digital content beyond traditional cable or satellite providers. This includes smart TVs, gaming consoles, and streaming devices (like Roku or Apple TV). As consumer habits shift towards streaming services, CTV has gained traction as a powerful platform for delivering personalized ads to a highly engaged audience.
Current Trends in CTV Advertising
- Rise of Ad-Supported Streaming Platforms: With the proliferation of ad-supported streaming services like Hulu, Peacock, Pluto TV and now, Netflix advertisers have a growing array of platforms to choose from. These services offer a mix of live TV and on-demand content, allowing for targeted advertising based on user data.
- Programmatic Advertising: CTV lends itself well to programmatic advertising, where ads are bought and sold in real-time through automated platforms. This method allows for precise targeting and optimization of ad placements based on viewer behavior and demographics.
- Cross-Device Targeting: Marketers can leverage CTV to reach audiences across multiple devices, creating a seamless brand experience from the living room to the smartphone.
Budget Allocation
Determining a suitable budget for CTV advertising depends on several factors, including firm goals, target audience, and marketing strategy maturity. Budget will depend on availability factors by market and platform too. We recommend aiming for a goal of 15-25% of available impressions.
Linear Strategy in CTV Advertising
As CTV continues to grow the time to consider adding it to your firm’s strategy will come. Dependence on linear strategies to support your CTV campaign will remain. CTV is a compliment to your linear TV. They work together.
While CTV offers innovative targeting capabilities, continuing a linear strategy can enhance campaign effectiveness.
A couple of case studies prove that point:
Firm A:
- Built a strong broadcast presence over time
- Added a separate incremental CTV budget and was consistent
Firm B:
- Moved all Broadcast budget to CTV (no broadcast presence during that time)
CTV is reshaping the TV advertising landscape, staying informed about current trends and best practices is essential for brands aiming to maximize their advertising ROI. By strategically allocating budgets and adopting a nuanced approach to TV strategies, marketers can leverage the power of CTV to connect with their target audiences effectively. Embracing these trends and strategies will not only drive engagement but also position brands for sustained growth in the evolving TV era.
