The future of advertising is happening now.
Ever see an ad and wonder, “how do they know I might need this product?” The fact is, advertising is evolving in such a way that the only ads you see or hear are for products and/or services tailored to your specific needs. Some may find ads to be annoying or intrusive, but they are actually becoming more productive. If you had to see ads, wouldn’t you at least want to see ads that matter to you? For most, the answer is yes.
Programmatic advertising targets the user, not the medium. No disrespect to Marshall McLuhan, but the “medium” is no longer “the message”. The message is now finding you wherever you are. With the rise in programmatic advertising comes the gateway in to people’s homes on their televisions and computers: wherever you watch, stream, or cast video & television.
Video consumption is rising
- By 2019, global consumer internet video traffic will account for 80% of all consumer Internet traffic.
- Facebook generates 8 billion videos on average per day. YouTube reports mobile video consumption rises 100% every year.
- 55% of people watch videos online every day.
- 90% of users say that seeing a video about a product is helpful in the decision process.
The rise in “casting” live or pre-recorded video has created a new opportunity for businesses: targeted (programmatic) commercials on connected TV. As TV audiences become more fragmented and time-shifted, advertisers need to stay in front of their target audience, which they can now achieve with Connected TV advertising.
Connected TV (CTV) Advertising is the process of serving digital video on an Internet-enabled television during TV content. Businesses can serve video ads to consumers watching live sports or news, or while they are binge-watching on their favorite show on TV.
Connected TV Inventory: CTV inventory are premium, professionally produced video content (not the banner ads that sometimes appear on CTV devices).
Over-The-Top Video Advertising*
Over-The-Top (OTT): Content goes “over” your cable box to deliver content via the Internet rather than from a cable provider. It is streaming or on-demand content served by a variety of content providers via a CTV device (dongle, puck or SmartTV) to a big screen. Content is “streamed” directly from the Internet through the device and into the TV, along with ads.
Full-Episode Player (FEP): Streaming or on-demand content served by a variety of content providers served to a desktop, mobile or tablet device. Ads are professionally produced, TV-like content that can appear on any device, on both app and web browsers. Content is typically TV length (30-60 mins) with commercials in between.
64% of people in the U.S. own a CTV device and half of U.S. Wi-Fi households now stream over-the-top (OTT) content like Netflix directly to their TV an average of 1 hour and 40 minutes every day, according to ComScore.
The CTV Experience: CTV devices connect your TV screen to the internet, whether by stick, dongle, puck, cube, or even a built-in connection. Regardless of the make or model, these devices all connect users to premium-quality content without a cable subscription.
Connected TV Devices:
Streaming Device: Those sticks, dongles, and cubes, specifically.
Smart TV: A television with a built-in connection to the Internet, no dongles or extra connectors needed.
Other Devices: Consumers are also on their mobile devices watching their favorite shows, or even short-length news or sports content. However, this does not count at CTV–that’s reserved solely for the big screen.
How Does CTV Work?
- Live Streaming: Content being served over the Internet in real-time, typically from a paid streaming service or directly from a network.
- Video On Demand (VOD): An alternative to live streaming, this allows busy consumers to catch up if they miss an episode, and many content providers offer both Live and VOD content.
- More people now use steaming services than have a cable subscription – 67% of respondents (and 77% of Millennials) watch streaming services.
CTV: inexpensive compared to cable TV commercial spots
Now you do not need to spend thousands of dollars on commercial spots. Connected TV commercials are not only affordable, but also more targeted than cable commercials.
The team at ODDS Marketing can get you CTV commercial spots for as low as $1000 (not including production, but we can do that too!). Our team has a variety of targeting options to tailor to your specific audience. If you would like more information, just give us a shout!