Why Advertisers Love CTV (Connected TV)
Consumers have loved CTV (Connected TV) for years now. And it’s a love that only grows stronger as the content gets better, more devices are available, and the price comes down. For advertisers, a love connection has taken a bit longer to develop. However, after a few lukewarm first dates this relationship is starting to heat up.
Like let’s elope… tomorrow.
Anyone that has followed the CTV space could see this romance coming; yet also understand why it was not love at first sight. Less than optimal transparency, over-promised targeting, high CPM’s and an inability to tie exposure to action were all standing in the way. And while the current marketplace isn’t perfect, it is certainly primed for tremendous growth.
Here are a few reasons why:
Largest Screen. We all love our phones and tablets, but when it comes to sitting back and consuming video nothing beats the big screen on the wall. However, up until recently a TV screen could not be targeted, reached and measured like a digital campaign. CTV and its internet-streaming content changes all of that.
Less Ad Load. Fewer ads in a commercial pod are better not only for the consumer, but also for a brand trying to break through the clutter. The majority of CTV inventory carries a significantly lower ad load than linear TV. This dynamic helps drive higher awareness and recall.
Precise Targeting & Measurement. Advertisers have wanted to move targeting beyond Nielsen demographics for years. As device graphs have expanded, it’s now possible. Leveraging first- or third-party data is becoming easier and more powerful every day. So is measurement. Tying actual household exposure to any desired action (web visit, store traffic, sale, awareness, etc) has been the exciting draw of Addressable TV. This capability is now available with CTV and will only continue to improve.
Hard To Skip. Most CTV platforms have non-skippable ads. No explanation needed on why advertisers love that.
Efficient Reach Extension. Nothing beats TV for driving large reach quickly. However, that reach can flatten out, especially for younger demos. It can also be hard to expand without a very large investment on linear TV. The addition of CTV can promptly boost your reach by delivering the elusive audience of cord cutters or cord shavers. The cost of the incremental reach is lower than linear TV and can easily be measured, too.
Amazing Content. Television content has never been better, especially CTV content from the likes of Hulu, Amazon, Netflix and Apple. Comedies, dramas, documentaries and movies with both mass and niche audiences are garnering the attention of viewers (and award shows). Great content fuels the overall CTV growth. Brands love aligning with strong and relevant content; and they continue to find plenty available in the CTV space.
More Competitive CPM’s. As inventory has increased and friction in the marketplace has been reduced, the CPM’s for CTV have become more advertiser friendly. And while it’s definitely not the least expensive thing you can buy, the benefits of CTV are much more in line with the price. For most advertisers, the price barrier is no longer an obstacle.
This is just a short list of reasons why advertisers are falling for CTV. We see this list continuing to expand over the coming months and years. And like any strong, lasting relationship, the love will keep on growing and growing.
To learn more about how we’ve been implementing a range of CTV strategies, reach out to Matt Cote at Matt.Cote@Eicoff.com.
