Why Every Business Should Include CTV Advertising in Their Marketing Strategy?
April 18, 2024
Let’s be real: we live in a world where streaming services and smart TVs have taken over the world like a storm. Today, most people watch shows and movies on streaming platforms like Netflix, Amazon Prime Video, Hulu, and more.
This new way of watching TV is called Connected TV, or CTV. And for businesses seeking to boost their growth, it is a big advertising opportunity. According to a study, around 43% of businesses say that CTV advertising drives higher ad conversions. Also, 45% of businesses say that it improves ad spend efficiency.
So, it is clear that CTV advertising is here to stay and it will continue to benefit businesses of every industry in the long run.
With that said, in this article, we’ll discuss what CTV advertising actually is and why you should include it in your marketing strategy. Let’s begin:
Key Takeaways on CTV Advertising for Business
- Understanding CTV Advertising: CTV advertising allows businesses to display ads on streaming services accessed through smart TVs or devices like Roku or Amazon Fire Stick, offering targeted and interactive ad experiences.
- Cost-Effectiveness: CTV advertising provides cost-effective options compared to traditional TV ads, allowing businesses to target specific audience segments and optimise ad spend efficiently.
- Cross-Device Targeting: Leveraging cross-device targeting, CTV advertising enables businesses to reach audiences across various devices, enhancing engagement and creating a seamless viewing experience.
- Enhanced Viewer Engagement: CTV ads foster higher viewer engagement through interactive features, resulting in increased attention and longer viewer retention compared to linear TV ads.
- Measurable Results and ROI: CTV advertising delivers measurable results, including metrics such as ad views, clicks, and conversions, enabling businesses to evaluate performance and optimise campaigns for maximum ROI.
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START NOWWhat is CTV Advertising?
CTV advertising is a way for businesses to show ads on streaming services like Netflix, Hulu, or YouTube, which people watch on smart TVs or devices like Roku or Amazon Fire Stick.
These ads are different from regular TV ads because they're shown on the internet, not on cable or satellite TV. CTV ads can be targeted to specific groups of people based on things like age, location, and interests, which makes them more likely to be seen by the right audience. You can read the Marketing Architects' guide on CTV advertising to learn about its targeting abilities.
They can also be interactive, like games or quizzes, which makes them more fun and engaging for viewers. Another best thing about CTV ads is that they're easier to measure than regular TV ads, so businesses can see if they're working well and make changes if needed.
Overall, CTV advertising is a modern and effective way for businesses to reach people who are watching TV in a new way.
Reasons Why Businesses Should Include CTV Advertising in Their Marketing Strategy
1. CTV Advertising is Cost-Effective
One of the best reasons to include CTV Advertising in your marketing strategy is that it is cost-effective. As compared to other forms of marketing like traditional TV ads, you’ll have to pay a lot to display your ads to a wider audience, even if not everyone watching is interested in your products/services.
But this is not the case with CTV Advertising. With CTV Advertising, you can target specific groups of people based on things like age, location, and interests. It clearly means that your ad is reaching the audience who are actually interested in your products/services.
Plus, CTV ads are much cheaper to make than traditional TV ads because they don’t require expensive product costs.
So, CTV Advertising can give you more bang for your buck, allowing you to reach the target audience more efficiently, and that too at a lower cost.
2. CTV Advertising Leverages Cross-Device Targeting
Cross-device targeting in CTV advertising means reaching people on different devices, like smart TVs, phones, or tablets. This lets businesses show ads to the same person across all their gadgets, creating a seamless experience.
By using data from different devices, advertisers can understand their audience better and show them more relevant ads. For example, if someone watches a cooking show on their TV, they might see ads for kitchen gadgets on their phone later.
This precision targeting helps businesses connect with their audience wherever they are, boosting engagement and driving results.
3. CTV Enhances Viewer Engagement
In CTV advertising, viewers get more involved with ads. They're not just watching; they're interacting. This makes ads more interesting and memorable. For example, viewers might click on buttons, answer quizzes, or even shop directly from the ad. It's like turning watching TV into a fun activity.
In fact, studies have shown that during CTV ads, viewers were engaged 71% of the time, 17% higher than linear TV. Also, with interactive features, CTV ads grab attention and keep viewers engaged longer.
This engagement is valuable for your business because it means people are more likely to remember the ad and take action, like making a purchase.
4. CTV Advertising Delivers Measurable Results and ROI
CTV advertising gives clear data on how ads perform. You can see things like how many people saw the ad, clicked on it, or bought something afterward. This helps you understand if your ads are working well. With this data, you can make changes to improve results.
Knowing the return on investment (ROI) can help you spend money wisely and get the most out of your advertising budget.
Conclusion
Connected TV advertising represents a paradigm shift in the way businesses engage with their target audience.
As consumers continue to embrace streaming services and smart TV technology, businesses that embrace CTV advertising stand to gain a competitive edge in the evolving digital landscape.
