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6 Reasons to Invest in CTV Advertising

Imagine a cozy family movie night in, binge-watching sessions with friends, or solo deep dives into your favorite series. How do you typically watch all these things? Chances are you’re streaming on various platforms through a smart TV or connected device.

As TV viewers continue to opt for these platforms, advertisers are provided a golden opportunity to reach engaged audiences in dynamic and innovative ways.

With that in mind, here are six reasons why investing in CTV advertising is a must-do for anyone in the advertising space.

What is CTV Advertising?

Connected TV (CTV) advertising refers to ads displayed on devices that connect to, or are embedded within, smart TVs. These devices include streaming media players like Roku, Amazon Fire TV, and even gaming consoles.

Unlike traditional TV ads, CTV ads offer a unique blend of the broad reach of television and the precision targeting of digital advertising, leading to our first reason to invest in this type of marketing.

6 Reasons to Invest in CTV Advertising

1. Unmatched Reach

CTV advertising lets brands connect with a huge, ever-growing audience base. With millions of households continually streaming on platforms like Netflix, Hulu, and Disney+, CTV ads can reach a wide mix of viewers. In fact, a recent study showed that over 80% of U.S. households have at least one connected TV device.

This way, an advertiser’s brand message gets in front of an extremely wide range of people.

2. Precision Targeting

One of the great things about CTV advertising is how it can target specific demographics with great precision. Advertisers gather demographic data from various sources such as user profiles, subscription data, and viewing habits. With extensive data analytics, this information is then processed to create a detailed profile of the audience.

This means that advertisers can reach their ideal customer based on age, gender, location, interests, and even specific viewing habits. This targeting ensures that ads are shown to the most relevant audiences, boosting the chances of engagement and conversion.

For example, if your product appeals mainly to millennials in urban areas, you can tweak your ad delivery to focus on that specific group. This targeted approach leverages the collected demographic data to maximize effectiveness.

3. Enhanced Engagement

CTV ads are usually non-skippable, so your audience is more likely to watch your entire message from start to finish. In fact, studies show that 95% of CTV ads are viewed to completion.

This naturally boosts viewer retention and brand recall. Plus, the interactive nature of CTV allows for more engaging ad formats, like shoppable ads, where viewers can make purchases directly from their screens.

This not only enhances the user experience but also drives direct responses and increases the chances of immediate conversions.

4. Advanced Analytics

Unlike traditional TV ads, CTV advertising gives you detailed analytics to measure your campaign’s performance in real-time. Advertisers have access to helpful information on viewer behavior, ad completion rates, click-through rates, and other engagement metrics.

With data like this, advertisers can fine-tune their strategies, tailor their content to better match a specific audience’s preferences, and boost overall ROI. Tracking and measuring every aspect of a campaign allows for ongoing optimization.

5. Cost-Effective

Compared to traditional TV advertising, CTV is a more budget-friendly way to reach your target audience. With lower costs per impression and the ability to avoid wasting ad spend on irrelevant viewers, CTV gives advertisers more bang for their buck.

Some research even indicates that CTV can cut the cost per impression by up to 50%. This efficiency means that even smaller businesses can go head-to-head with bigger brands in the digital ad space.

Plus, since CTV advertising is measurable, brands can keep tweaking their spend to get the best results, making sure every dollar counts.

6. Flexibility and Adaptability

In addition to targeting, CTV advertising also offers more flexibility for both ad placement and creative content. Advertisers can easily switch out ads, test different creatives, and adjust campaigns based on real-time performance data to keep optimizing results.

This flexibility keeps advertising fresh and relevant, allowing advertisers to quickly respond to market trends, seasonal changes, or specific events.

For example, if an ad isn’t performing well, a brand can quickly replace it with another without significant costs or delays. This adaptability is crucial in today’s fast-paced content world, where consumer preferences and behaviors can (and do) change quickly and repeatedly.

Stay Ahead With CTV Advertising

Investing in CTV advertising offers brands and companies a powerful way to reach and engage with their target audience. With unmatched reach, precision targeting, enhanced engagement, advanced analytics, cost-effectiveness, and flexibility, CTV advertising is a great way to stand out.

Stay ahead of the curve with CTV advertising and drive your brand’s growth.

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