CTV is Taking Over… and it’s Here to Stay
The reign of cable boxes and satellite dishes is over. Move over, outdated giants, because the Connected TV (CTV) is the new sheriff in town. Say goodbye to rigid channel packages and limited options. CTV is a device that connects to or gets embedded in a TV to support video content streaming, from sleek streaming sticks to familiar consoles, unleashing a boundless world of entertainment directly to your living room. This revolution, fueled by CTV and its streaming partner Over-the-Top (OTT), which is just the delivery of TV/video content directly from the internet, has sparked a nationwide movement: cord-cutting (Oracle). Watch what you want, when you want, and break free from the shackles of rigid schedules.
In this article, we’ll delve into the heart of this exciting CTV revolution. We’ll explore the devices powering it, uncover the reasons behind cord-cutting’s meteoric rise, and showcase the vast content universe waiting to be streamed.
The Growth of CTV
With the reign of traditional TV crumbling under the rise of its internet-connected sibling, CTV. With a staggering 88% of U.S. households boasting at least one device in 2023, CTV is rapidly changing how we consume content and, crucially, advertising (OnAudience). For brands, it’s a game-changer. Gone are the days of hefty price tags and limited targeting! CTV delivers your message to your ideal audience on the big screen but with budget-friendly options like cost-per-metric and cost-per-view pricing. And the best part? No more agonising wait for campaign insights. CTV provides real-time data, letting you tweak and optimise your strategy on the fly. It’s not just about watching TV anymore, it’s about measurable growth and targeted engagement, and CTV is leading the charge.
Consumers are now choosing ads over subscriptions with 20% of UK TV viewers are expected to remove a subscription streaming service in the next 12 months, and further, 13% will add a free ad-supported streaming service (Performance Marketing World, 2023). This shows that CTV power lies not just in its techy bells and whistles, but also in its surprisingly ad-friendly audience. Viewers not only tolerate relevant ads, but even appreciate them as part of the experience. This translates to real results: measurable customer conversions triggered by ads they’ve seen on their connected screens. Add to that the findings of a VAB study showing CTV ads boosting brand awareness by 20%, consideration by 15%, and purchase intent by 10% (gumgum, 2023).
Challenges to CTV
However, CTV’s promise comes with a price tag – its CPMs far surpass digital video, and precise targeting isn’t always guaranteed. This challenge compounds as major players like Amazon, Samsung, and Roku run their own DSPs, hoarding valuable user data and coveted inventory within their walled gardens. Fragmentation isn’t just for viewers; behind the scenes, communication hurdles between various platforms can make even simple transactions a tangled mess (Peer39). While CTV offers undeniable potential, navigating its cost and complexity remains a significant hurdle for advertisers. Although through innovation these challenges are becoming more and more obsolete.
With the rise of Actionable TV Ads here at Say It Now, we have been able to push the limits of the naturally high CPM associated with CTV by further increasing brand dwell time during consumer interactions with our smart speaker skills. Actionable TV Ads further increase the already high brand awareness that comes with CTV advertising, allowing your media spend to work harder.
Another challenge for advertisers when it comes to CTV is having a tangible and measurable call to action (CTA) that reflects its high-quality viewing experience. There have been attempts to rectify this, however, but they have not quite measured to the level expected of consumers. For example, one fix was to use QR codes within the ads to provide consumers with a quick way to access the products or services being advertised. However, this has been seen as more of a clunky viewer experience where users need to try and find their phone, open their camera, and then proceed to focus it on their screen. By the time this all happens, the ad has very likely disappeared from the screen.
Actionable TV Ads simple and effective voice to CTA is nondisruptive, accessible at any time, and eliminates the rushed experience for users to try and find their phone to scan an on-screen QR code.
In conclusion, the CTV revolution is here to stay, and its impact on content consumption and advertising is undeniable. While challenges in cost, targeting, and call to action exist, innovation like Actionable TV Ads is paving the way for a more seamless and effective experience for both viewers and advertisers. As CTV continues to evolve, so will its capabilities, offering even greater personalization, interactivity, and engagement. So, embrace the future, ditch the cable box, and dive into the boundless world of entertainment that CTV offers – the possibilities are truly endless.
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