Connected TV (CTV) has been growing rapidly since 2014. Eighty-seven percent of households in the United States have at least one Internet-connected TV device. These include connected Smart TVs, stand-alone streaming devices (such as Roku, Amazon Fire TV sticks or boxes, Chromecast, or Apple TV) and connected video game systems. 

CTV Growth

Source: Statista

Connected TV marketing allows brands to target specific audiences with ads based on viewing behavior. Find out here how app marketers can utilize the rise of CTV advertising to grow their user base and retain loyal customers.

What is CTV?

Connected TV (CTV) refers to devices that are connected to the Internet in order for viewers to stream videos and other entertainment. CTVs enable audiences to use apps on their televisions in order to watch streamable content such as Prime Video or Netflix. Connected TVs encompass smart TVs, gaming consoles, and any internet connected streaming devices. 

  • Smart TVs: Televisions that have a built-in internet connection and media apps.
  • Gaming consoles: Devices such as PlayStation, Xbox, and Nintendo Switch that can be connected to the TV and have streaming functionalities in their app stores.
  • Internet connected devices: These are also known as Over-The-Top (OTT) devices. These internet connected devices can be plugged into TVs (even if they’re not Smart TVs) in order to connect consumers to the internet to use apps and stream videos. Two examples of these are Roku and Amazon Fire Stick.

CTVs, in short, let users access content on their televisions via the internet rather than using traditional cable. This allows users to pick and choose what they are watching and what platform they watch it on. With CTV advertising, marketers have the opportunity to serve user specific content to their viewers based on previous and current watching behavior. Traditional cable doesn’t have the same user data as CTVs, meaning that there is an abundance of opportunities for apps to win and re-engage new segments/pockets of users via CTVs. 

CTV Measurement 

Connected TV is unique compared to other advertising channels because it combines traditional television’s capabilities with digital marketing’s targeting and measurement. With the growing popularity of CTV, app marketers should take advantage of this platform in order to reach relevant and engaged audiences. In order to do this, it’s important for marketers to understand how to measure the value of and effectiveness of their CTV advertising

A few important aspects of measuring a CTV campaign are reach, impressions, viewability, engagement and of course, conversions. 

  • Reach: The number of unique viewers that have seen the CTV ad.
  • Impressions: The number of times the ad has been viewed.
  • Viewability: The percentage of impressions that were viewable – meaning they were seen by the viewer for at least 50% of the ad's duration. This can also be measured as cost per completed view or CPCV. 
  • Engagement: The level of interaction with the ad, which is measured through metrics such as click-through rate (CTR) and video completion rate (VCR).
  • Conversion: The number of viewers who took a desired action, such as visiting the app or completing a purchase as a result of the ad.

App marketers that wish to leverage the value of Connected TV marketing should optimize campaigns to generate a return on investment in each of these aspects. The engagement levels of CTV advertising  will not be high if there isn’t a significant amount of viewability. An ad with reach might not generate the desired conversions if it doesn’t have a strong call to action for the viwer. Making sure that these measurement aspects work together is the key to winning Connected TV marketing

CTV and App Marketing

It is expected that the number of subscriptions for video on-demand services globally is expected to top 947 million by 2024. Most TVs sold today have internet connectivity and include built in apps that provide access to the most popular streaming services. In order to make a lasting impression on viewers, app marketers should leverage hyper-personalization, high quality videos and relevant content in their CTV campaigns.

Hyper-Personalized CTV Advertising 

Customer experience and personalization are critical components in capturing new users and retaining existing ones. Around 80% of customers are more likely to purchase from a company that offers personalized ad experiences versus generic ones. With CTV, marketers have unique data that doesn’t come with traditional television advertising.

Utilizing data points such as streaming channel preferences, time engaged and demographics such as age and gender can help marketers personalize an CTV advertising experience. For example, if an app is promoting vacation discounts they can target viewers who have watched travel videos or shows such as The Bachelor because they might be more likely than others to spontaneously spend money on a romantic vacation. Pairing the action desired with a timely message creates higher conversion rates for advertisers. 

Serving relevant and timely content will help increase engagement with a CTV ad. Because Connected TV marketing allows brands to target specific audiences, marketers can utilize location information to create ads that will stand out to the viewer. Combining the viewing information with general demographics creates a higher likelihood of that viewer clicking on the ad. 

High Quality Video CTV Advertising 

Because CTV advertisements are placed within the television landscape, the quality of the videos needs to match the streaming quality. Making sure that the ads are eye-catching and exciting will pique the interest of the user. Static ads won’t work when it comes to Connected TV marketing, therefore teams need to prioritize video creation. 

The audience needs to understand the ad message to be able to remember it and act on the call to action. In order to make sure the CTA is heard within the short video period, marketers should complement the ad’s visual effects and narrative with sound effects, dialogue or voiceovers. Making sure the first five to ten seconds of the video draws the user in is extremely important to the success of CTV advertising

Takeaways of CTV Advertising 101

Eighty-seven percent of households in the United States have at least one Internet-connected TV device. Here, we outline how app marketers can utilize the rise of CTV in order to grow their user base and retain loyal customers.

Connected TVs encompass smart TVs, gaming consoles, and any internet connected streaming devices. In order to make a lasting impression on viewers, app marketers need to leverage hyper-personalization, utilize high quality videos and create relevant content.

  • Hyper-Personalized Ads: Around 80% of customers are more likely to purchase from a company that offers personalized ad experiences versus generic ones. Utilizing data points such as types of streaming channels, time engaged and demographics such as age and gender can help marketers personalize the ad experience.
  • High Quality Video Ads: Because placement of CTV advertising  within the television landscape, the quality of the videos needs to match the streaming quality. The audience needs to understand the ad message to be able to remember it and act on the call to action.