The television industry has changed over the years, and continues to evolve. Decades ago, TV watched over the internet was regarded an impossibility. However, currently millions of people have abandoned traditional TV for internet-bound TV. The advent of the connected TV has affected the TV industry and other industries alike. Connected TV is the latest buzzword in the marketing world. Unfortunately, many people do not know what it is and how it can be used in your digital strategy. Whether you are new to connected TV or looking to increase your knowledge on it, this article will be useful.
What are Connected TV and OTT?
In many cases, the terms connected TV and OTT are used interchangeably. Nevertheless, they have different meanings. Connected TV (CTV) can be defined simply as a TV that connects to the internet through a cube or stick like Amazon Fire Stick or AppleTV. It utilizes internet connectivity to stream content. CTV allows users to watch content from Hulu, YouTube, and other apps.
On the other hand, OTT is an acronym for over-the-top. It is the delivery of film and TV content through the internet on the traditional closed television system. OTT content is displayed through CTV or it can be streamed from your phone, tablet, or laptop.
Capabilities of CTV/OTT
- The primary reason advertisers are leveraging CTV is its broad market penetration. CTV devices and OTT services are widespread. In the US, approximately 182 million people watch CTV. By 2020, it is projected that 75% of American families will have CTVs.
- Connected TV reaches more viewers than traditional TV. According to Statistica, 54% of Americans aged between 18-29 use streaming more than traditional TV.
- Users are willing to watch ads through CTV. They acknowledge they are part of the business model. The frequency of the ads is low. Hence, users are more likely to pay attention and remember the ads. Additionally, OTT services are cheaper than traditional paid TV.
- It targets the technology-savvy millennial audiences
- It provides in-depth reporting. You can measure the impact of CTV campaigns using digital and traditional metrics. Advertisers can get insights on performance, and how to optimize a campaign.
- Unlike traditional advertising methods that are invasive and bothersome, CTV and OTT advertising engages viewers when they are relaxed. They become more receptive of brand messages.
Where to use in Marketing Strategy
If you have been using traditional TV solely for your marketing, CTV is your golden opportunity to reach a wider audience and build your brand’s reputation. CTV provides companies and marketing agencies an opportunity to incorporate TV as part of their digital marketing strategy. It allows marketers to deliver ads to users through TV content. Marketers can embrace multichannel marketing –using numerous channels to reach customers- to offer users a seamless experience. They can include CTV to their multichannel marketing to leverage its many benefits. Before embracing CTV marketing, ensure you define which smart TV platforms to target depending on your geography, industry, and end user profile. Also, make sure you understand connected TV audiences so that you create content that meets their needs.
Benefits of CTV marketing
- It creates efficiency with marketing dollars by reaching high-value audiences.
- Promotes transparency; you have proof that your ad was served. Also, you get metric reports such as view rate, impressions, etc
- You have increased control of your marketing campaign. You can make adjustments to improve performance.
- Allows for well targeted marketing
- High viewer engagement resulting in better ROI
- Results are measurable
CTVs will continue to grow in the coming years as many people adopt digital streaming on their living room screens. Therefore, marketers should take advantage of this trend to diversify their marketing mix towards CTV. If you haven’t made your switch to CTV digital marketing, contact the experts at AdCellerant. They will offer you an amazing experience.