With countless streaming services, CTV advertising is becoming a larger part of the marketing mix for advertisers in 2024. Predictions say CTV ad revenue will grow 13.8% in 2024, after a 10.9% increase the previous year (AdExchanger). It can be daunting navigating this evolving landscape with countless options and varying costs. Which platform or network is best to yield a return? How can I best target my brand's core demographic and also new customers? What format performs the best?
To start off, CTV Advertising, or Connected TV advertising, is the placement of ads on streaming content through internet-connected devices, such as Smart-TVs or gaming consoles. In 2023, there were an estimated 111 million CTV households in the U.S. (Statista), so that’s quite a few eyeballs you can reach and it's only growing.
What are some of the benefits of CTV advertising?
Targeting: CTV platforms usually offer sophisticated targeting capabilities, letting advertisers target specific demographics, interests, and behaviors of the viewers. You can also target devices down to their type, brand, model, etc.
Reach: As mentioned above, there are many consumers with CTV, and traditional TV viewers are increasingly moving towards digital streaming for their content.
Engagement: CTV users are typically highly engaged. 97% of video ad impressions viewed on CTV were watched until completion in 2021. There are also ad format options that are interactive, which can further enhance engagement.
Measurable Results: CTV advertising offers robust measurement capabilities, allowing advertisers to track key performance metrics like impressions, completion rates, conversions and more. You can also access ad inventory, device price analysis and more in real time.
How do you buy CTV ads?
Programmatic: This involves using automated technology (usually a DSP) to purchase ads in real-time auctions. Marketers often find you have a broader reach across various platforms and lower costs.
Platform Direct: Buying directly on the CTV platform, such as Roku, Amazon Fire Stick TV, etc. The process of buying will vary depending on the platform but this method can offer greater control over placement, targeting and pricing.
Publisher Direct: Buying directly from the OTT service providers such as YouTube or Tubi. This method can sometimes limit your reach as these platforms have unique audience segments. This method can also require more time due to different formats being available on different platforms.
What are some of the CTV ad formats?
Instream Video Ads (3 different types):
Pre-roll ads: These run before the video content. Typically range from a few seconds to 30 seconds and aim to capture the viewer’s attention before the content begins.
Mid-roll ads: These run during breaks within streamed content, similar to a commercial break you would see in traditional television.
Post-roll ads: These run after the streaming content has finished. They are the least common of the three.
Interactive Video Ads: These allow the viewer to interact with the advertisement by engaging with on-screen elements such as polls, clickable hotspots, quizzes, etc. this can increase ad engagement and brand affinity.
Display Ads: These are on the home screen in a Smart TV, it will display your advertisement on top of other content options. They are somewhat like a digital billboard, and can also be inline placements.
While CTV advertising is multifaceted and a more recent addition to the overall marketing mix, advertisers should consider it as a way to reach a growing audience, drive better engagement, and position themselves for success in the age of digital television.
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