What are Connected TV Commercials and How Can They Help Your Business

With the constant development in technology, there ought to be a continuous evolution in the world of digital advertising as well. Marketers, as well as every SEO company in Kansas City should be on the lookout for the best traditional and digital marketing techniques to reach their very diverse audience.

With the “new normal” still in effect, a new way of advertising has risen in the form of connected TV commercials. This technique is now the current hype in the business and digital marketing world due to its convenience and advertising capabilities.

Granted, the tech behind connected TV has been with us for many years now, but it is not until later that many businesses discovered its power of advertising.

Get into the bandwagon and discover why your company needs CTVs (Connected TV Commercials) as a marketing tool. Here is everything you need to know about connected TV commercials and how they can help your business grow and thrive.

What is Connected TV?

Connected TV or CTV simply refers to a television that has the ability to connect to the internet to support video content streaming. This includes your flat-screen smart TVs, Apple TVs, Xbox, and Playstation. 

Now when CTV is in play, then the acronym OTT is just around the corner. OTT or Over-The-Top refers to the delivery of any content from the internet to the connected TV. 

There’s no need for users to subscribe to a traditional cable system or satellite provider when there’s OTT. Instead, users can easily stream and watch content via the internet, which is usually more affordable and often free.

Some examples of OTT content that you probably already encountered and even use includes movies and tv shows you stream from Netflix, Disney+, Amazon Prime, and Hulu. 

Another excellent example of OTT but in the form of a message application is WhatsApp. It utilizes the internet for users to send messages with one another instead of a mobile texting plan.

How Does It Work as an Advertising Tool?

So how does CTV and OTT technology have anything to do with advertising? Well, it kind of works the same way as with traditional TV commercials, where after a few minutes of watching a specific drama show, a bunch of commercials and advertisements will stream on your tv.

The same thing happens with connected TV advertising, but the stark difference is users watch this content via the internet. So connected TV advertising works the same way as watching Youtube content and having a sponsored advertisement pop up mid-watch, then getting back on your video after a few seconds. 

How Does it Differ from the Traditional TV Commercial?

Besides the delivery method, CTV commercials are much, much more effective than traditional TV commercials for many reasons. Here are just some of them.

1. Everybody Uses CTV Now

As of 2019, marketing studies revealed that 60% of households in the US own a CTV and enjoy content delivered by OTT services, like Netflix. The percentage of CTV owners is expected to reach 75 to 80% this year, which leaves only a few people viewing ads through paid TV cable, antenna, and satellite providers.

Additionally, Millennials are reported to be the biggest fans of CTV and OTT content, especially those made by Netflix, Hulu, and Amazon. So if your primary target audience is Millennials, then it’s time for you to invest in an SEO company in Kansas City and try out CTV ads now!

2. CTV Ads are Targeted

Connected TV advertisements can target a specific audience, thus allowing your ads to be viewed by the right users and increasing your ROI.

For example, if your target is sports-related users, then you can pay for major sports networks, like ESPN, to run your ad during a live sporting event that they’re televising. This ensures that your ad will definitely reach its target audience, plus you will know how many viewers actually viewed the ad and let it run its course or skipped it. 

Additionally, CTV can target viewers the same way as websites and social media platforms do. You can target specific audiences by using the data of the OTT apps they use and the content they view.

3. Users Don’t Mind CTV Advertisements

One of the best advantages of CTV ads compared to linear TV is that viewers don’t mind the video advertisements in their CTVs because they’re more invested in the content they’re watching. 

Studies revealed that a considerable percentage of people don’t mind sitting through a video ad to continue watching their show, no matter where the ads start rolling (pre-roll or mid-roll advertising).

Furthermore, studies found that many people feel that “these ads are a fair price in exchange for the free and low-cost content in CTVs.” 

4. Interactive and Various Ad Formats

Lastly, CTV advertisements have more interactive video ad formats than traditional tv commercials. For example, users have the option to skip it, not view, or click a link that would direct them to the business’s landing page if they liked what they saw in the ad. Some format examples of CTV ads include:

• In-stream video advertisements refer to unskippable video ads that last for 15 to 30 seconds. It can play before or during a show or content.
• Home screen placement ads pertain to a short video or image ad just sitting on your home screen and containing a call-to-action.
• Interactive pre-roll ads are just like in-stream video ads, but this one rolls at the start of the content and has a clickable feature to redirect you to a specific landing page.

5. CTV Ads Have Real-Time Metrics

Lastly, CTVs commercials feature real-time performance tracking. Unlike its traditional counterpart, CTV ad metrics can actually tell you how much traction and engagement your ad gathered, not just how many times it was loaded. 

Moreover, it allows marketers to view user insights valuable to their future ad campaigns, such as user geography, demographic, and devices connection.

Conclusion

The bottom line is that connected TV commercials can play a massive role in the success of your brand awareness campaigns, user conversions, and growth of your business. 

Salt Rank is a trusted SEO company in Kansas City. If you’re ready to start discussing CTV commercials as a potential marketing strategy for your business, get in touch with us today!