Traditional TV Advertising is gradually giving way to CTV advertising, short for connected TV. Both types of advertising will continue to coexist in the future as the perpetual market share tug-of-war plays out.
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Take a deep dive into the nuances of streaming video technology including the difference between CTV and OTT, explore the advantages and disadvantages of traditional vs. CTV advertising and you’ll likely find that one is better for your business.
Is CTV Replacing Traditional TV?
Statistics show that around 90% of households in the United States have a CTV streaming service. However, this statistic does not reveal that CTV is completely replacing traditional TV.
When comparing CTV viewers who watch ad-supported streaming against those who watch commercials on traditional TV, you’ll find that each channel has its merits.
Over-the-top streaming content (or OTT) channels are video content on mobile, web-connected devices and computers, connected TVs and smart TVs, and they’ve become quite popular.
We’ve reached the point where dividing your marketing budget between CTV and broadcast TV ads is financially prudent.
It is no secret that broadcast and cable TV viewers are losing customers. However, plenty of people are still loyal to this traditional approach to entertainment.
Cable services are evolving with unique channel packages in an attempt to retain their valued customers, meaning traditional TV is here to stay, likely for decades or indefinitely.
CTV Advertising
CTVs and OTT models are sometimes sold preloaded with several streaming services. Programmatic technology for advertising enables businesses to reach members of a target audience when streaming CTV content. Viewers are inclined to stream videos supported by ads simply because that content is affordable.
According to the Leichtman Research Group, nearly 50% of adults consume video content on a TV via a web-connected device daily. This percentage is significant as it is a sizable leap from a mere 25% in 2017 and a lowly 4% in 2012.
CTV advertising is also favored as it tracks advertising campaign performance in real time through hyper-targeting technology. Hyper-targeting allows businesses and advertisers to use services and promotions that are specific to certain areas. Implement narrow parameters such as targeting consumers through a competitor for attention or even targeting down to the zip code level and it is that much easier to put video ads in front of those most likely to pay for a service or product.
Moreover, personalized advertising extends beyond demographics such as annual income and age, moving out to other factors used for audience targeting. Personalized messages displayed through CTV ads make the most of personalized experiences already available within streaming services that shift based on each viewer’s unique preferences.
Examples of targeted ad delivery through CTV include the delivery of ads to certain households in accordance with viewing habits, interests, and distinct demographics.
Reconnect With Audiences
CTV advertising is also gaining favor among business owners and marketers as it connects with audience members across screens. Programmatic technology now makes it possible to employ highly innovative advertising formats for bridge-building with those who fit the criteria of narrow buyer personas.
This high-tech approach to advertising gives businesses a sense of who is genuinely interested in the value proposition. Programmatic tech also sets the stage for a subsequent reconnection on another screen.
Gauging Success in Real Time
Much is made of the Nielsen ratings of broadcast and cable TV. Advertisers, business owners, and TV content creators alike have long turned to the Nielsen ratings to get a sense of which programs, genres, and times of day are optimal for establishing connections with viewers. However, the Nielsen ratings of traditional TV pale in comparison to the real-time analysis of CTV content.
CTV ads are digitally hosted, meaning it is possible to analyze results instantaneously. This real-time viewership tracking provides helpful insight into whether advertising spending is generating the optimal outcome. Gauging success on CTV is possible through:
- Clickable links
- Promotional codes
- QR codes
Such links are sent to members of the viewing audience as they watch from web-connected devices.
Crunch the Numbers for an Educated Decision
According to TVLine, streaming platforms represented nearly one-third of viewers’ aggregate time invested in watching TV. Alternatively, broadcast TV content drew more than 26%.
Slightly more than 60% of worldwide consumers indicate they trust conventional TV ads more than those of the non-linear variety.
We would be remiss not to point out that nearly two-thirds of United States residents subscribe to both cable TV and a streaming video platform.
Take these statistics into consideration when determining which platform is best for your business’s video ads and you’ll have the information you need to make an educated decision.
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