Nowadays, CTV advertising is not what it used to be a couple of decades ago. The evolution of technology, as well as the growing popularity of platforms like Netflix, forces marketers to adapt. In this article, we will review changing viewership habits you should consider and explore the ways of adjusting to them.
Viewership tendencies to keep in mind
Modern viewers do not have to limit themselves to traditional broadcast television. Now, they have many more options to choose from, and this affects their viewership habits. Here are several statistical facts to prove this:
- The number of connected TV users is growing continuously. Thus, only in the United States, there are more than 56 million users (among millennials), and this rate is forecasted to exceed 62.5 million by 2025. At the same time, among baby boomers and Generation X, CTV is less popular.
- As for linear TV, its share in overall TV usage is less than 50%.
- As of September 2022, 51% of users have fully switched to streaming-only services (in the USA). 23% were considering doing so, while 26% claimed that they were not interested.
- The number of Netflix subscribers is increasing as well. As of the third quarter of 2023, the platform had more than 247 million paid users; and this is around 8 million more in comparison to the previous quarter.
- At the same time, Netflix is not the only platform to pay attention to. In the first half of 2023, Amazon Prime Video had a market share of 21% (in the USA). Netflix had 20%.
- 45% of YouTube viewership occurs on TVs.
- 86% of customers are willing to watch CTV ads in case they are relevant.
It is also important to keep in mind that modern viewers use not only TVs to access video content. They also leverage smartphones, while the range of connected devices includes gaming consoles, Apple TV, etc.
Adapting TV advertising campaigns
Thanks to the rise of connected TV, advertising has become more effective. With linear TV, it was impossible to launch targeted campaigns, as well as to measure their performance.
Fortunately, nowadays, you can use various digital platforms to launch connected TV advertising campaigns and reach your audience efficiently. As of 2022, the viewer completion rate of 75-second CTV ads was over 95% worldwide. For 15-second ads, this percentage was nearly the same.
Considering the viewership habits provided above, let’s review the trends you should keep in mind to adapt your advertising strategy.
Launching CTV campaigns can be very effective when performed correctly, but you should go beyond and reach your customers at multiple touchpoints of their journeys. Deliver omnichannel experience across different screens: TVs, smartphones, laptops, etc. For instance, Netflix can be accessed via all of these devices, and you should be there for your customers.
Make sure to keep your messaging and visuals consistent so that viewers will be able to recognize your brand when interacting with video content on different gadgets.
By creating interactive CTV ads, you drive engagement and increase the conversion rate. For instance, these can be interactive overlays or clickable ads. Such advertisements are more memorable and allow viewers to interact with the content, so they are more likely to take the desired action.
Connected TV advertising allows accurate targeting so you can reach customers who are most likely to convert. By specifying demographics, language, IAB categories, location, and other settings, you can maximize the performance of your campaigns and deliver the right ads to the right viewers.
Analytics and attribution
Thanks to evolving analytics and attribution capabilities, you can measure the performance of your CTV ads and collect insights regarding your viewers’ customer journey. With this knowledge in mind, you can refine your strategy and increase its effectiveness.
You should select metrics according to your goals and pricing model. However, common metrics are as follows:
- Impressions (the number of users who saw at least a part of your ad);
- Watch time (the amount of time a viewer watched your ad);
- Completion rate (the number of users who watched the ad till the end);
- Return on ad spend (or ROAS, the revenue you earn for every dollar allocated to advertising);
- Cost per completed view (or CPVC, the amount you pay to the publisher after an ad is watched till the end);
- View-through conversions (the number of people who converted after watching your ad).
Programmatic platforms allow launching highly adaptable TV campaigns with ease. You only have to specify the essential settings (like audience targeting), all the rest is done automatically, meaning that you will be able to focus on your core tasks. The platform will find the most relevant ad space, so your CTV advertisement will be shown exactly to those viewers who can be interested in your offer. In general, programmatic is the future of television ads as it allows accurate targeting, thorough analytics, and process optimization.
When choosing a programmatic platform, make sure to check if it supports CTV advertising.
CTV is definitely not the end of TV evolution. New technologies and platforms may arise, affecting viewership habits and offering new opportunities for advertisers.
Therefore, it is crucial for you to monitor TV advertising trends and technology innovations. This will allow you to adapt your marketing effort and, as a result, remain competitive and drive income.
In the meantime, learn more about connected TV advertising and its benefits.
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