Your Local Business Can Benefit from Integrating Connected TV (CTV) into Your Marketing Plan.
An increasing number of TV viewers are abandoning cable television to ‘cut the cord’ in favor of the convenience of streaming services that offer increased variety and the flexibility to watch programming when they want to watch it, not on a pre-planned schedule dictated by the cable companies.
According to eMarketer, the proportion of US household that subscribe to traditional pay TV services dropped below half for the first time, as the jump in cord cutting has grown faster than expected. It is forecasted that by the end of 2027 that proportion will drop to one-third.
Connected TV adoption is expected to increase to 45 million households in 2024 driven by growth in internet access, growing affordability of smart TVs, and free streaming.
As well, engagement with connected TV is growing with projected growth of time spent of +8.3% to 2 hours and 16 minutes per day.
This growth in connected TV viewership and engagement is good news for local business who are looking for effective ways to reach their target audience and advertise their business.
What is Connected TV Advertising?
Connected TV (CTV), also referred to as over-the-top (OTT), are ads that can be placed on any TV or device that can be connected to the internet and access video streaming content. CTV/OTT includes ads bought programmatically and shown on computers, tablets, mobile devices, gaming consoles, or smart TVs.
The term ‘over-the-top’ comes from the ability to bypass traditional (or linear) TV providers that control media distribution, giving advertisers the ability to reach their audiences directly.
Going ‘over-the-top’ allows advertisers and media companies freedom of movement without pre-planned broadcast schedules or geographic limitations.
Connected TV is an effective way for small business to reach their target audiences including specific demographics and interests; and deliver their marketing messages via the emotional impact of video.
With connected TV advertising messages are delivered via streaming platforms including Roku and Amazon Fire, reaching viewers who are watching shows on these platforms. Advertising can be targeted based on demographics including age, gender, and location. Advertising can also be targeted based on interests, which enables businesses to target viewers who are most likely to be interested in the products and services they sell.
Connected TV advertising can be targeted in the same way as digital display advertising, making your marketing investment more effective as your messages reach only your desired audience.
Why Should You Include CTV in Your Media Mix?
- Reach: You can reach viewers beyond those viewers of traditional or linear TV.
- Targeting: CTV not only enables access to a growing audience, but also includes effective targeting tools similar to those provided for digital display advertising including geographic, addressable targeting (via prospect lists), demographics, behavioral, and interest-based targeting. The more relevant your advertising is to your target audience, the more effective it will be.
- Multimedia Integration: Your CTV campaign will only become more effective when integrated with a multimedia campaign in alignment with the customer path-to-purchase.
- Cost Effectiveness: Most broadcast and cable television is out-of-reach of the budget of most small businesses. Connected TV offers flexibility in choosing a price structure including cost-per-thousand (CPM), cost per completed view (CPCV), and more.
- Accountability: You can quantify the effectiveness of CTV and optimize future campaigns.
How is Connected TV Different?
With connected TV advertising, ad buys are not based on air time or channels. Instead, CTV ads are delivered one at a time based on the specific viewer watching a program. The advantage here is that you don’t have to guess which shows your target audience are watching. Instead, you can build a target audience based on demographic and behavioral signals, then serve ads to specific viewers.
How Can This Help Local Businesses?
Connected TV presents a significant opportunity for local business, including multi-location businesses, to hone-in on viewers based on very specific geographic targeting. Here are some additional CTV targeting options:
- DMAs
- Cities/Towns
- Counties
- Zip Codes
- Neighborhoods
- Individual Addresses
Still Uncertain? Here Are Some Key CTV Stats to Further Inform Your Decision-Making:
- 68% of households watch CTV in 2024.
- 88% of households own at least one CTV device in 2024.
- 80% of programming will be ad-supported in 2024.
- More than one-third of respondents in every age group own a connected or smart TV. 71% of those in the 35-54 group and 54% of those over 55 own these devices.
Sentinel Solutions understand all important media, including connected TV, and how it can help to make your integrated multimedia campaign more effective. We can develop a custom and integrated multimedia marketing program, engaging with potential customers all along their path-to-purchase, to help your business grow.
Give us a call if we can help at 603-352-5896 or e-mail to Advertising@SentinelDigitalSolutions.com. We’re here to help you succeed.
