As viewer habits shift from traditional cable to online streaming, Connected TV (CTV) has emerged as a vital advertising space. CTV refers to televisions connected to the internet, either through built-in smart features or devices like streaming sticks and game consoles. With 87% of U.S. households owning at least one CTV device as of 2024, this trend is growing rapidly. (Source: Leichtman Research Group)
Understanding Connected TV and Streaming TV
While CTV specifically relates to watching content on TV sets, Streaming TV encompasses all internet-delivered content across devices like smartphones and tablets. CTV advertising involves ads displayed on these internet-connected TVs, allowing for precise targeting based on viewer interests, behaviors, and demographics. This targeted approach enables brands to reach their desired audiences more effectively. According to WARC Media’s latest forecast data, CTV ad spending is projected to exceed $35.2 billion, highlighting the increasing demand for this advertising medium. CTV’s popularity continues to grow, with U.S. adults expected to spend about 123.4 minutes daily on it in 2024, second only to mobile devices in daily screen time. (Source: eMarketer)
Benefits of Advertising on Connected TV
- Advanced Tracking: CTV platforms offer detailed analytics on viewer engagement, ad impressions, and completion rates.
- Interactive and Engaging Formats: With rich media and interactive ad formats like clickable videos, product carousels, or quizzes, CTV ads provide an opportunity for deeper audience interaction.
- Operational Efficiency: To enhance operational efficiency in Connected TV (CTV), we can display a single creative in one region while allowing the same creative to be shown in different locations. This approach will ultimately reduce costs.
- Higher Engagement: Viewers are typically more engaged with on-demand content, leading to a 95% ad completion rate on CTV, significantly higher than other digital formats. (Source:eMarketer)Â
Best Practices for CTV AdvertisingÂ
To maximize CTV ad campaigns, consider these strategies:
- Creative Testing: Experiment with different ad formats and messages to determine what resonates best.
- Dayparting and Contextual Targeting: Deliver ads based on when and where your audience is watching, ensuring your message aligns with viewer intent and the surrounding content for higher relevance.
- Dynamic Creative Optimization (DCO): DCO personalizes ads in real-time using data like location or behavior to make messaging more relevant to each viewer, increasing engagement and conversions.
- Seamless User Experience: Design ads that blend naturally with platform content to avoid disruptive transitions and maintain viewer engagement throughout the experience.
- Cross-Device Integration: Align your CTV ads with other platforms like mobile, desktop, and social media to create a unified brand message and encourage interaction across different devices. Experience this with Lemma’s geo sync offering.Â
Connected TV is becoming essential for modern advertising. With 89% of advertisers reporting higher engagement from CTV than traditional TV, investing in this medium provides brands with precise targeting, measurable results, and enhanced viewer engagement. Lemma offers a variety of services designed to enhance CTV advertising efforts. With strategic ad placements and advanced targeting options, Lemma equips brands with the tools and know-how to tap into the power of Connected TV and take their advertising strategies to the next level.
To learn more about the benefits & best practices of CTV Advertising reach out to us at https://lemmamedia.com/contact-us/
