Connected TV Advertising: A New Era for Brands
The landscape of television advertising in the UK has undergone significant changes in recent years, with the rise of subscription platforms and fragmented viewing habits, Connected TV (CTV) has seen the largest percentage of viewership growth YOY. Historically, traditional or linear TV ads were broadcasted to wide, and a limited range of buying audiences, but now, thanks to the internet, we can execute campaigns that can engage with viewers on their smart TVs, offering more precise targeting and enhanced viewing experiences. Connected TV advertising is revolutionising how brands can reach their audiences, and its growth shows no signs of slowing down.
What is Connected TV?
Before diving into the advertising potential, it's essential to understand what Connected TV means. CTV refers to any television that connects to the internet, allowing users to stream content through platforms like Netflix, YouTube, and Amazon Prime Video. These devices include smart TVs, gaming consoles, and streaming media players like Roku and Apple TV. What sets CTV apart from traditional TV is the interactive capability of internet connectivity, giving advertisers more control over how, when, and where their ads are delivered.
The Growing Popularity of CTV
The UK has seen a significant shift in how viewers consume television content. It is estimated that nearly 70% of UK households have a smart TV, and that figure is still steadily increasing. This surge in smart TV adoption has contributed to the rise of CTV platforms, as more people turn to online streaming services over traditional broadcast TV.
Why CTV Advertising Matters
Connected TV advertising presents a unique opportunity for brands to capture the attention of an audience that is harder to reach through traditional TV channels, especially 16-34s.
Enhanced Targeting Capabilities - Traditional TV advertising typically broadcasts ads to broad audiences, regardless of their interests. In contrast, CTV allows advertisers to target specific demographics, interests, and behaviours. This precision is possible through data such as age, gender, viewing habits, location, and even past purchase behaviour.
This means more relevant and engaging content for viewers, ultimately leading to higher conversion rates for brands.
Better Measurement and ROI - CTV advertising provides robust measurement solutions. We can track how viewers are exposed to the campaign, how often they viewed, and whether it led to desired actions, such as website visits, app downloads, or product purchases.
This level of tracking is crucial to measure the effectiveness of campaigns and optimise future marketing efforts. It also offers a clear comparison between CTV and other digital advertising channels, which allows for more efficient budget allocation.
While the growth of CTV advertising offers tremendous potential for brands, it does come with its own set of challenges:
Fragmentation of Platforms - CTV advertising in the UK is still fragmented, with different streaming platforms offering varying levels of targeting and measurement capabilities. For example, we must navigate the different ad formats and inventory availability on platforms like YouTube, ITV Hub, and Amazon Prime Video.
Summary
Connected TV advertising is changing the way we can plan and deliver campaigns for brands to engage with audiences. It offers unprecedented targeting capabilities, better analytics, and improved user engagement compared to traditional TV advertising. While challenges remain, the continued growth of smart TVs and streaming platforms means that CTV will only become more integral to the marketing strategies.
