Hey, advertisers! Is Connected TV on your radar as we approach 2024? If not, it should be. We’ve been at the forefront of the CTV revolution for several years now, and we’ve developed a deep understanding of the many advantages it can bring to our clients’ campaigns. Yet, surprisingly, we encounter many advertisers who are still not harnessing the full potential of CTV and, as a result, are missing out on the variety of benefits the medium has to offer. As we look ahead, it’s clear that CTV is set for continued growth, making it imperative for you to pay attention and strategically incorporate this medium into your media mix.
Lay of the CTV Land
The CTV landscape has come a long way from its early days when consumers were primarily tethered to traditional linear TV and cable, occasionally dabbling in early streaming services like Hulu. Today, we find ourselves firmly entrenched in a streaming-centric world, with time spent on CTV projected to come within an hour of linear in 2024 among US adults. CTV is no longer the domain of a few select apps targeted at a younger demographic; it has evolved into a diverse ecosystem with major industry players. Names like Peacock (NBC), Disney+, Paramount+, Apple TV+, and MAX have joined the ranks, along with native services such as Samsung TV Plus and subscription-based streaming platforms like Sling and FuboTV.
Moreover, the audience has transformed, spanning all generations. In this new era of television, even Grandma is streaming her favorite shows, just like the teenager down the street. This broad adoption spans demographics and age groups, offering a bona fide opportunity for advertisers of all types to dive into this no longer fledgling medium. The connected TV realm is brimming with potential, and it is high time advertisers embraced its full scope.
Technological Benefits of CTV
CTV is a unique blend of traditional and digital media. While the fundamental objective of CTV advertising remains grounded in building brand awareness, its technological prowess elevates it to a new level of precision. This technological infusion grants advertisers access to enhanced targeting and tracking mechanisms, empowering them to make informed decisions when planning and executing campaigns.
For example, in the realm of targeting, the capabilities of CTV platforms go beyond mere demographics. They often offer the ability to layer on additional behavioral and contextual targeting layers, enabling advertisers to reach their audience with pinpoint accuracy and preventing waste. Instead of being confined to broad geographical segments like Designated Market Areas (DMAs) or cable zones, CTV opens the door to far more granular geotargeting options. From selecting specific zip codes to honing in on individual households through addressable CTV, the possibilities can be remarkably detailed.
The advantages of technology extend to tracking as well. While traditional TV advertising remains elusive in terms of attributed conversions, CTV often offers robust conversion tracking methods. Utilizing website pixels for post-view conversion tracking allows advertisers to directly link viewer engagement to tangible results. For larger CTV advertisers, the toolkit extends to more advanced tracking mechanisms, such as store lift and brand lift studies, delivering insights into how campaigns impact in-store performance and overall brand growth.
Furthermore, the integration of first-party data is a powerful asset, enabling CTV advertisers to craft campaigns that are not only more precisely targeted but also meticulously monitored. Technology, in this context, is more than a tool; it's a dynamic bridge between tradition and innovation, marrying precision targeting with data-driven insights to ensure that every advertising investment is strategically sound and effective.
One of the most significant transformations in the realm of Connected TV is the emergence of premium content that's exclusive to streaming platforms. This paradigm shift has redefined how users consume content, as they can now access streaming-exclusive shows that are not available through traditional linear cable or broadcast television. Think about breakout hits like "Ted Lasso" on Apple TV+, "Stranger Things" on Netflix, "Yellowstone" on Paramount+, or "Barry" on MAX. Streaming services have wholeheartedly embraced the creation of their own premium content, establishing a unique value proposition for viewers.
But the exclusivity doesn't stop at scripted series. Streaming platforms have also made substantial inroads into the world of sports. For instance, Apple TV holds the exclusive rights to Major League Soccer, Peacock boasts the exclusive rights to the English Premier League, ESPN+ secures broadcasting rights for a multitude of soccer, football, and basketball leagues, not to mention the NHL, while Amazon Prime takes the reins for the NFL’s Thursday Night Football. The list goes on. As streaming services continue to secure exclusive rights to popular content and create their own premium long-form shows, the trajectory for CTV appears to be firmly in an upward direction, establishing itself as a ubiquitous and integral part of consumer entertainment.
For advertisers, this evolution should not be overlooked. The increasing prevalence of CTV and the allure of exclusive premium content make it a compelling arena for reaching engaged and diverse audiences. As these platforms continue to expand their exclusive offerings, advertisers have an unprecedented opportunity to tap into the vast viewership of CTV, making it an essential consideration for future advertising strategies. As we approach 2024, it is more important than ever to consider CTV in your media plans. Contact The Ward Group to get started today!