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The Power of Connected TV Advertising for Brands

Over the last decade, connected TV (CTV) advertising has become a must for many advertisers looking to reach their audience in new and efficient ways.

With the rise of CTV and streaming services, traditional cable subscriptions are not as common of a standard these days. As more and more people cut the cord and embrace the convenience and flexibility of CTV, advertisers are presented with a golden opportunity to elevate their brand recognition and fuel growth like never before.

What is Connected TV Advertising?

Connected TV refers to any television that can connect to the internet and access content beyond what is available through standard cable or satellite broadcast. This includes smart TVs, game consoles, and devices such as Roku, Amazon Fire Stick, and Apple TV, which grants access to streaming platforms and apps.

CTV advertising, consequently, involves placing ads within the content accessed through these connected devices. Unlike traditional TV commercials, CTV advertising allows for more targeted, interactive, and data-driven campaigns, enabling brands to reach specific audiences with more precision and efficiency.

This engaged and segmented approach to advertising highlights the shift in consumer viewing habits and the increasing significance of digital strategies in brand promotion.

The Benefit of CTV Ads

A key benefit of connected TV advertising lies in its precise tracking and measurement capabilities through advanced analytics. A performance marketing agency will have the tools to closely monitor key performance indicators (KPIs) such as reach (the number of unique viewers), frequency (how often an ad is seen by a single viewer), engagement rates (viewer interaction with the ad), and conversion metrics (how effectively the ad prompts viewer action).

This variety of data offers immediate feedback on ad performance and guides future campaigns. Brands can use this information to fine-tune their advertising strategies, ultimately improving their return on investment. In fact, studies show an average increase of 30% in campaign effectiveness using CTV ads.

Meanwhile, the real-time data used can reveal if an ad is not reaching its intended audience or if an ad’s frequency is too high, allowing advertisers to adjust a campaign on the fly. This ensures that advertising budgets are spent more efficiently because they’re reaching those who would genuinely want to see the ad or purchase from a brand.

Improving Performance with Connected TV Ads

Connected TV advertising generates a significant uptick in viewer engagement. These platforms transform the traditional passive advertising experience into a more interactive journey.

For example, viewers can engage with ads through innovative features like real-time polls or direct click-throughs to advertiser websites or product pages. This level of interaction not only boosts engagement rates, but also enhances the memorability of your ads.

Additionally, connected TV advertising is designed to seamlessly integrate into the viewer’s watch experience. While traditional television commercials are more randomized, CTV ads are tailored to mesh naturally within the content being watched.

These differentiators ensure that ads are more likely to be positively received by viewers.

Brand Recognition and Growth

The unique capabilities of CTV ads are beneficial for boosting brand visibility and growth. The clout of being featured on the big screen, combined with memorable and engaging content leads to all around better brand recognition.

Example: A health and wellness brand may orchestrate a campaign targeting fitness enthusiasts. Through precise audience segmentation, the brand can deliver its creative ads to viewers who have shown interest in fitness apps, workout videos, or nutritional content on streaming platforms.

By integrating high-quality, engaging video content that resonates with the lifestyle and preferences of this demographic, the campaign would likely achieve significantly higher engagement rates. Additionally, leveraging interactive ad features, such as prompts to sign up for a free trial of a new health supplement, may further enhance viewer interaction and conversion rates.

This approach not only maximizes ad spend, but also ensures that the content is relevant and appealing to the target audience. This fosters a positive brand image and drives measurable outcomes, such as increased website traffic, subscription sign-ups, or sales.

The Takeaway for Brands

New-age streaming culture and platforms have necessitated a need for advertisers to interact with their audiences differently. Connected TV ads combine the creative style of traditional TV advertising with the targeting and analytical practices of digital marketing.

As the digital and traditional broadcasting worlds continue to converge, the importance of connected TV advertising will only continue to grow.

With that in mind, companies that want to lead the pack must consider how to effectively incorporate connected TV advertising into their marketing strategies.

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