The Value of Advertising on Connected TVs

Usage of Connected TV (CTV) is booming at the moment, with its US audience predicted to grow from 180 million in 2018 to over 200 million by 2021. This huge surge in popularity is also supported by figures from Cisco, which predicts that 82% of all consumer internet IP traffic by 2021 will be video traffic. So, advertising on Connected TVs is understandably becoming a topic of major importance for businesses and marketers alike.

This is especially true considering the massive wave of ‘cord-cutting’ which is redefining how Americans watch TV. By the end of 2019, more than a third of American households won’t have a traditional television subscription, yet the number with ‘over the top’ streaming subscriptions is over 45% and growing year after year. 

Considering the growing importance of advertising on Connected TVs, we felt it was time for a run-down of what value is out there and what prospective advertisers need to know about the shift to CTV.

Connected Television vs. Traditional Television

First up, it’s probably good to give a rough outline of exactly what CTV is. Connected televisions are basically any sets that are connected to the internet by any means, which could be:

  • Games console (Playstation, X-Box, etc.)
  • Online Media Players (Roku, Amazon Fire, Google Chromecast)
  • Smart TVs

As the TV set is online, it then becomes possible for it to show what are known as ‘over the top’ (OTT) video platforms, which describes all video content that’s transmitted outside of the regular cable and satellite methods. Examples of some of the most popular OTT streaming providers are:

  • Netflix
  • Hulu
  • Amazon Prime
  • Sling TV

The terms connected TV and OTT are generally used interchangeably as, along with other devices such as laptops, tablets, and smartphones, OTT subscribers view their video content over their TV set, thus replacing the traditional TV delivery mechanism.

The Benefits of Advertising on Connected TV

Greater engagement

The data coming from digital advertising on connected TVs has been pretty outstanding, with ads showing a 97% completion rate, with the main reason being that they are unskippable. This means that video advertising can afford to be longer form without having to worry about viewers switching channels or skipping ahead as soon as they can. 

The result is that the 30-second video ad dominates the scene, accounting for nearly 70% of all connected TV ads. Longer ads mean greater story-telling ability and an opportunity to connect more with your target audience.

Picking the right audience

One of the greatest advantages of digital advertising is the ability to target exactly who you want with your ads. Rather than the approach of traditional television, where shows were made to fit slots that were meant to be watched by certain demographics, with advertising on connected TVs you can be far more certain of who is actually watching your ads. OTT providers and CTV, for example, could allow slots on all crime shows or for everything watched by 50+ retirees, without wasting spend on outliers or having to compete for primetime audiences to reach a niche.

This has been heralded as the “holy grail” of TV advertising by a consortium of some of the biggest names in entertainment (including Disney, NBCUniversal and Comcast) who are establishing a standard for addressable advertising.

Greater metric control

Though there is not currently the level of feedback and data that is possible with other digital advertising, due to the lack of third-party cookies on connected TV ads, like anything online, the level of metric control still outstrips traditional television. As users will more than likely be signing on through their social media or Google accounts, there is a huge amount of consumer information that can still be gained at a basic level, even before getting into the preferred-level access likely to be offered by all OTT providers to their partners.

Consumers growing more accustomed to ads

Consumers are getting more used to the idea that piracy is bad, not just because it’s illegal but because it also affects the quality of their experience. Viewers are therefore increasingly coming around to the idea that watching ads is a fair price to pay for having high-quality TV on tap. Many consumers also find that connected TV ads are “less annoying”.

Programmatic delivery

As the market for advertising on connected TVs is still relatively young, inventory has yet to get near the levels of traditional TV. However, this is changing quickly with several ad tech companies getting in on the act, which promises to improve the availability and ease with which connected TV ads can be bought and delivered to the right target audience as part of a campaign.

At Bloom Ads we’ve built our reputation on finding the best blend of advertising for every customer and each campaign, no matter what the platform. Reach out to us today.

The Pros and Cons of TV Advertising

Since the airing of the very first television commercial in 1941, television still takes the lead as the most influential advertising platform. Fifty-nine percent of American adults still cite cable channels as their primary source of TV consumption. But with the rise of streaming, it’s natural to wonder about the role of television commercials in today’s marketing climate. Is television still advertising’s darling?

As advertising pros, we say: Definitely.

Despite what many might think, this age-old medium continues to be powerful in the race to win over audiences across the globe. Our rich collective experience tells us loud and clear that commercials are a positive benefactor in most cases.

But as with any evolving medium, there are some downsides of this beloved method, too. So what does this mean for your marketing strategy?

Get Informed on the Pros and Cons of TV Advertising

There’s no definitive answer for whether you should or should not use TV advertising. To come to the right conclusion, you’ll need to carefully consider the advantages and disadvantages of TV advertising alongside your enterprise’s scope, needs, and budget. Luckily the experts at Bloom Ads have put together a quick guide to the pros and cons of TV advertising so you can do just that.

Before we dive into the deep abyss, let’s review the pros of TV advertising:

Pros of TV Advertising

Pro 1: TV Has Extensive Reach

Unlike other conventional methods of advertising, television boasts a reputation for gaining the largest audience. In today’s society, a vast majority of older adults didn’t grow up in a technologically advanced age. If what your enterprise needs most is broad exposure, it doesn’t get much wider than with television.

With that being said: if your general customer base is forty or older, television ads are money well spent. You just can’t argue with television’s exposure factor. Just carefully consider the time of day and region of your TV advertising slots to make sure you’re meeting your target audience where and when they are watching.

Pro 2: Commercials Are Simple to Analyze

If you’ve watched your fair share of television, then you’ll know it’s simple to grasp the concept of a commercial’s message. Instead of having to read and retain information, watching the message play out before your eyes leads to a faster (and clearer) retention rate.

Television commercials can shock, cause laughter, or tell a story – all of which create instant memories and helps your message sink in.

Cons of TV Advertising

Con 1: TV Advertising Is Costly

Unlike traditional advertising mediums, television commercials are the most expensive to produce. From keeping the commercial on the air to creating the content, the numbers quickly begin to add up. Additionally, it takes quite some time to produce a commercial in most cases, so you want to be sure that your television advertisements clearly execute your brand’s message in a timeless way that isn’t contingent on shifting trends.

Con 2: Commercials Are Semi-Permanent

Changing the content of a commercial after it has been published on airwaves is a difficult task. Unlike print/digital advertisements, changing a commercial would take a long time — even to make a small change. This would ultimately result in spending more money, and might eventually lead to creating a new commercial. Make sure you have a clear concept from the start and a budget big enough for edits.

Take Advantage of TV Advertising Pros with the TV Advertising Pros

As experts in the pros and cons of TV advertising, no one’s better equipped than we are to help you narrow down the best ad campaign for you while maximizing the advantages of the medium of television.

Want to get your commercial right the first time? Contact our professionals here at Bloom Ads, and we’ll be happy to answer your questions or help you get started on your next ad campaign. Visit our website to learn more about our advertising services or give us a call directly at 818-703-0218.

Bloom Ads Global Media Group | 818.703.0218 | info@bloomads.com
20720 Ventura Blvd. Suite 140 Woodland Hills, CA 91364