How Connected TV Advertising is transforming TV Industry

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Connected TV is any type of the home entertainment device (internet-capable TV set, video game console such as Xbox, PlayStation, Blu-ray Disk Player or streaming video device) that is connected to the internet. Compared to traditional TV, which is primarily focused on broadcast media, these new-generation devices are all about online interactive media, internet TV, over-the-top content and on-demand streaming media that can be accessed through software applications or web widgets. The user interface resembles that of the smartphone. For this reason, connected TV is sometimes called “smart TV”.

Technically speaking, connected TV (CTV) is the integration of the internet and web 2.0 features into new-generation TV sets. You might also regard the CTV platform as a hybrid TV or a merging of computer technology and television. Through connected TV companion devices, users can access video streaming services (Netflix, Hulu, YouTube, Pandora) and search movies, photos and other digital content on the web, on a local cable TV channel, on a satellite TV channel or a local storage drive.

Connected TV use is not limited to video streaming. Smart TV owners report listening to music channels or apps, accessing social networking platforms such as Facebook and Twitter, sending emails, browsing for news and information, and shopping online, too. This wide range of features presented by internet-enabled TVs offers unparalleled opportunities for brands and content creators.

How Big Is Connected TV?

In the U.S., 62 percent of the households have already shifted toward smart TV with connected devices such as Roku, Apple TV or gaming consoles, according to an eMarketer survey. This means that more than 164 million U.S. internet users access video content via connected TV devices, and this number is predicted to grow up to 200 million viewers in 2019.
In 2017, the CTV viewing audience represented 8.1 percent of the overall TV viewing for adults aged 18 to 49, which means they are savvy, diverse viewers. However, it is not only taking off in America. The penetration of connected TV devices in the North America, the United Kingdom, Japan, Germany and France will surpass 50 percent of households over the next two years, according to the Interactive Advertising Bureau.
Connected TV is becoming a powerful open platform that caters directly to a variety of new applications and services to homes, mainly for the young, middle-aged and older adult population. Such robust, tech-savvy audiences hold compelling marketing and advertising opportunities for brands that looking for ways to increase engagement and raise brand awareness as well as deliver direct response messages.
Additionally, according to YuMe’s in-depth consumer research, 87 percent of consumers reported using over-the-top devices (smartphone, computer, tablet) when watching digital content on a connected TV for:

  • Texting with friends about the show or movie;
  • Searching information about the actor/movie/show;
  • Reading and posting on social media about the show/movie;
  • Searching for reviews of a product that they saw on a TV commercial; or
  • Posting on social media about a commercial.

Therefore, connected TV is a valuable addition to a cross-channel marketing strategy. Consumer migration to internet-enabled TVs and over-the-top devices offers rich targeting capabilities and more creative ways to interact with viewers.

Connected TV Advertising

The connected TV advertising ecosystem combines expertise from the two worlds: traditional TV and digital marketing. Here are some advantages of smart TV advertising.

  • Ad quality: Connected TV offers targeted, highly personalized, HD-quality ads with stereo sound, delivered fullscreen. Better quality of the ad itself promotes brand loyalty and boosts brand exposure.
  • Ad formats: CTV advertising is highly entertaining, allowing marketers to experiment with animated, static, call-to-action and interactive video ads that drive consumer engagement and increase the performance of the video campaigns.
  • High completion rates: Connected TV’s natural large screen experience results in highly viewable ads because it imitates the classical cable TV experience. Consumers not only pay more attention to CTV ads but also tend to watch them for longer time period.
  • Real-time metrics: With connected TV advertising, marketers can actually measure ad campaign effectiveness by tracking the number of views, clicks, conversions and direct responses.
  • Targeting: In order to use smart TV, users are required to log in via universal identifiers such as Facebook or Google accounts. The technology will use third-party data to complete users’ profiles based on geolocation, zip code, interests, online behavior, device, language and others. Precise audience segmentations allows targeting brand-receptive audiences with relevant messages, bringing more value to the brand.
  • Responsive audiences: Smart TV users choose the content they want to watch and prefer ways how to consume this content and whether to engage with it. Such high levels of control trigger high levels of satisfaction among viewers, which leads to better perceptiveness and positive attitudes towards ads.
  • Premium audiences: More than 20 percent of daily ad requests for CTVs are registered during primetime hours while premium content streaming, such as live concerts and important sporting events, which suggests unique audiences and potentially impressive returns for advertisers.

SmartyAds Connected TV Ads

SmartyAds now supports inventory buying and selling on connected TV devices. The solution brings massive benefits to both demand and supply partners:

  • For publishers, we provide connected TV integrations for app developers and web publishers interested in monetizing their video inventory across all devices and screens. We provide powerful SDKs and easy tag-based integrations to help publishers generate maximum yield on connected TV. SmartyAds clients can get access to connected TV inventory through SmartyAds supply-side platform directly. Unlock the true value of your inventory, and make most of your content!
  • For media buyers, advertisers can now target their audiences in highly responsive CTV environment delivering 15-second and 30-second full-screen video ads that truly matter. CTV advertising is a powerful and efficient way to reach potential consumers through cross-device targeting. Know where your audiences are, and stay connected with them anytime!

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