Is Connected TV (OTT) Advertising Right for You?

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    NOTE: We’ve published an updated post on Connected TV. Check out “HOW CONNECTED TV FITS INTO THE MEDIA MIXhere.

    As consumers become more accustomed to watching video programming on their own terms and with varied devices, Connected TV is getting much-deserved attention by media planners and buyers.  Laptops, cellphones, tablets, gaming consoles, desktop computers, TVs…it seems the list of technology we interact with on a daily basis is constantly growing and evolving. This has significantly altered the consumer experience and has offered advertisers a unique opportunity to really get to know their target audience and learn how to engage with them.

    What is Connected TV?

    Connected TV Households (Source: eMarketer)
    66% of US households own a Connected TV device.

    Connected TV goes by several names: OTT (over-the-top) device, Smart TV, Hybrid TV, etc.  Simply put, Connected TV is any type of screen that is connected to the internet and can stream digital video; often times this will be the largest screen in the home.  Aside from Smart TVs, content can be streamed via devices like Chromecast, Roku, Firestick, and gaming consoles such as Xbox, PlayStation, Nintendo, and several others.  As of this writing, it’s estimated that 67% of US households own a Connected TV device and this number is expected to grow 12% by 2021.

    In this new media landscape, Connected TV offers the opportunity to understand consumer behavior on a more personal level. OTT viewers are easily able to select their own “prime time” content whenever and wherever they want, so they are naturally engaged in both content and ads.

    Targeting with Connected TV

    What sets ad-supported Connected TV apart from linear TV is that it offers unique targeting abilities, going beyond traditional age and gender targeting. Many marketers are attracted to Connected TV for the ability to execute granular targeting by income, presence of kids, shopping intent, lookalike modeling, previous purchasers of your product or service and many more strategies all executed on the biggest screen in the home. With Connected TV you can select the device type you wish to target, the times of the day, and a geographic area.

    Data Access with Connected TV

    As with buying inventory programmatically, a big advantage of including Connected TV in a media buy, is the data acquired. Not only can you tailor your targeting for TV screens with digital strategies, but you can also track and measure data in valuable ways. Using devices in the household, marketers can use IP-address-based device mapping to see the consumer experience from end-to-end (from when the ad is viewed, to when a purchase is made). This allows marketers to attribute an action/conversion to a specific impression and learn which media garners results.

    Data retrieved from Connected TV campaigns can be used to re-target those that have viewed your ad on all their other devices, such as desktop computers, tablets, or mobile phones. This strategy can be implemented uniquely on a household by household basis – you can then tailor your message for a specific household depending on the data you collect!

    Connected TV Delivers Co-Viewers

    More than 90% of Americans age 13-64 watch programming on their TV screens with other people — and this holds true among viewers across the full range of broadcast and digital video platforms, according to research conducted by the IAB.

    In that survey, “56% of those co-viewing on OTT said that they regularly talk about the brands or products they see while watching content on television screens.”  These engaged OTT co-viewers are also, “24% more likely than linear TV co-viewers to search online for the products and brands they saw advertised on TV.” Advertising on Connected TV vehicles will reach your specific audience within the premium content they love.

    Is Connected TV right for you?

    Connected TV is a great option for those looking to hyper-target and limit ad waste. With Connected TV, your ad message will be delivered to a very specific audience, allowing you to focus ad spend on only the consumers you want to reach. Connected TV does guarantee a completed view of your content, but, unlike interactive TV ads, Connected TV ads are not clickable on the big screen so it’s not a true direct response vehicle.  If your goals are to generate high CTRs and you want to drive users to a particular website, then this is probably not the right choice for you.  On the other hand, it can bring awareness of a product or service to a well-defined target audience.

    We’re excited to show how Connected TV can add value to your media plan.  Connect with a TEC Direct Media Strategist to learn how this medium can work for you.

    But Wait – There’s More!

    We’ve published new information on Connected TV.
    Read our article, “Why Advertise on Connected TV?”



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