CTV Digital Advertising

OTT advertising allows marketers to reach consumers directly on streaming platforms.

What Is CTV Digital Advertising?

OTT advertising allows marketers to reach consumers directly on streaming platforms. However, there is one key difference between OTT advertising and CTV advertising. When comparing CTV vs OTT, the most notable contrast is where content is streamed. CTV refers specifically to television sets that have internet access built-in or through an external device. For CTV digital advertising, it refers to Connected TV commercials played on televisions that access streaming applications. When asking what is CTV advertising, the individual needs to focus on what the consumer is using to get online through their television set. 

The following are some examples of CTV: Samsung Smart TV, Microsoft Xbox, Roku, Amazon Firestick, Sony Playstation, Google Chromecast.

OTT advertising is when you use a device to watch a television show or movie. This could be on a phone, a computer, or a tablet. CTV advertising is the same thing, but on a TV. People usually prefer this kind of advertising because they can see it better on a TV than they can on other devices.

Premium CTV advertising on OTT advertising platforms is designed to engage viewers before, during, or after watching a TV show. Most Connected TV advertising is designed to play through from start to finish without a skip option. Although advertisements are featured on a television set, the cost is still less than traditional network TV commercials.

Connected TV advertising is designed to work with both large and small marketing budgets. This type of advertising is usually priced according to how many people see the ad. Connected TV ads appear on devices that are connected to the internet, so the price of advertising depends on how much data the advertiser wants to collect about their target audience. Marketers can use real-time data to see if people are responding to their Connected TV ads and which ones are not working.

What is OTT advertising?

OTT advertising is similar to CTV advertising. They are both ways for companies to show their ads. Companies can show the same type of ads on OTT devices and CTV devices. OTT advertising helps companies grow. High-quality, video ads help improve brand recognition. Marketers control how often people see their ad and how responsive people are to the ad. OTT advertising is highly targeted and shown based on people's previous interactions with a company. For example, if someone has interacted with a company before, they might see a retargeted Connected TV commercial from that company.

CTV advertising and OTT advertising have high completion rates. According to Strategus, CTV advertising completion rates are over 90 percent. With higher completion rates, brands are more likely to see a return on investment. Additionally, OTT advertising reaches consumers who own any device, such as a TV, desktop, tablet, or mobile phone.

OTT advertising and Connected TV advertising are important for a company's marketing budget because they have a lot of reach. As of November 2021, the average person spent 80 minutes per day watching OTT content. This was a 9 percent increase from the previous year. But since the COVID-19 pandemic started, more people have been watching OTT content. So companies now have a chance to interact with their target customers frequently through binge-watching TV shows.

As a company plans its marketing strategy, it should consider IAB. IAB is the Internet Advertising for Media Buying standard. It protects brands when they promote their products and services through OTT advertising platforms. Connected TV advertising is also protected under the terms and conditions of IAB.

Examples of OTT advertising companies

There are many different types of advertising platforms that you can use to show your ads. The best ones allow you to target customers specifically for your brand. For example, toy makers might want to use a platform that has a lot of child-friendly content. Another benefit of using an OTT advertising platform is the ability to target people based on their viewing habits. 

The following companies offer advertising inventory through an OTT platform: Amazon Prime Video, Hulu, Paramount Plus, Peacock, Pluto TV, Vudu, Roku Channel, Sling, Crackle.

What is connected TV?

As you may know, CTV stands for "Connected TV" and means any type of television set that can stream over the internet. A CTV definition typically refers to televisions that can download applications intended for streaming. There are three categories of Connected TV:

  • A smart television is a television that can be connected to the internet. This allows it to support different applications. Some popular manufacturers of smart TVs are Samsung, Sony, and Vizio.
  • Gaming consoles can be hooked up to televisions to provide a platform for streaming content. This includes the Sony Playstation, Microsoft xBox, and Nintendo Switch.
  • An OTT device is a type of Connected TV device that lets you watch streaming content. This means that you can download applications and watch movies and shows directly on your television. Some popular examples include the Amazon Firestick, Apple TV, and Chromecast.

Examples of Connected TV platforms include: Roku, Chromecast, Microsoft Xbox, Sony Playstation, AppleTV, FireTV.

What is connected TV advertising?

CTV advertising is ads played on a television that can be connected to the internet. This type of advertising always plays on a full player, which includes commercials that cannot be skipped. The ads are optimized for television screens and can be displayed in high definition. The type of CTV advertising chosen by a brand depends on its goals and preferences. Some examples of CTV advertising types include:

  • In-stream video advertisement. This ad will be displayed before or during an OTT program. It will last up to 30 seconds and cannot be skipped.
  • Interactive ad. An interactive ad could play before or after the episode. You can click on the ad and be redirected to a different page.
  • Home screen and pause button ads. These versions can be static or animated for the marketing campaign. The ads will usually have a clear call to action.

TV advertising companies help brands get their ads on the right platforms. TV advertising companies do this by providing programmatic buying opportunities. With programmatic buying, brands can buy and sell ad space in real-time for specific devices or TV streaming platforms. Programmatic buying also allows for automated bidding without having to enter into a contract with a platform. Ads can be targeted better with programmatic buying, as it provides access to multiple content types and streaming services at once. This makes it easier to track the results of each campaign and measure how much CTV advertising has assisted in brand growth.

Examples of CTV advertising platforms

Connected TV advertising companies provide a place for video and banner ads to appear on the screens of viewers. The Connected TV companies can represent the platform or the channel. Some Connected TV advertising platforms are media groups run by television stations, while others include omnichannel platforms and Connected TV devices. 

The following is a small sampling of CTV advertising platforms: Roku, Amazon Firestick, Apple TV, The Trade Desk, Chromecast.

CTV examples: TV commercials

It is important to look at CTV advertising examples to see what makes a good commercial and what doesn't do well. This will help advertisers judge what can positively reflect a brand and the company's core values. OTT advertising examples will offer the same insight since they are often categorized with Connected TV commercials.

Keynes Digital created a TV Commercial review page called One View. We launch a weekly Connected TV advertising example and judge it based on whether it garners a direct response or assists with branding. 

Some questions to look at per CTV example may include:

  • Direct Response. Do I know who the advertiser is from start to finish? Does the ad grab my attention right away? Does the ad look professional? Do I know where to go to follow up?
  • Branding. Would I need to watch many times to remember the ad? Is the ad memorable? Is the ad buzzworthy? Would I share with friends?

Connected advertising

TV advertising statistics show that many marketers prefer the platform over linear TV advertising. With traditional network commercials, companies don't typically have enough data to make smart marketing decisions. However, with CTV measurement, it's more than just measuring how long someone watches an ad. Although video completion rates are important, marketers want to form a partnership with companies that provide additional data sets. For instance, post-view attribution reports will state whether or not consumers interacted after viewing a Connected TV commercial. This way, marketers can measure metrics like ROAS (Return On Ad Spend), CPA (Cost Per Action), CPCV (Cost Per Completed View), TV network performance, impressions, and more.

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