Connected TV: The Future of Advertising
Back in the days, kids and adults alike regularly tuned in to their TV sets at home to watch their favorite TV shows. Nowadays, a lot of people prefer “Netflix and chill” over watching traditional TV shows as their source of entertainment.
In fact, there was a huge rise of over-the-top or OTT streaming last year — with major OTT providers such as Netflix and Amazon Prime Video seeing a spike of subscribers. With so many shows, documentaries, and films to choose from, it’s no wonder that streaming is and will continue to dominate the TV market for the next couple of years.
The rise of CTV advertising
As a result of this rising trend, it is also not surprising that a lot of brands take advantage of CTV advertising to promote their products and services. For starters, OTT refers using an internet connection to access hundreds or even thousands of TV and video contents. It is slowly becoming a major threat to traditional cable companies.
In fact, connected TV or CTV in simple terms is said to be the next big thing in advertising. A recent report from Beachfront revealed that CTV advertisement requests soar to a whopping 1,640 percent year after year. That means in 2017, there are already around 1.7 billion CVT advertisement requests and then suddenly shooting up to almost 30 million last year.
The popularity of CTV and OTT continues to grow, considering the popularity of videos and shows you can access online. It works by showing advertisements before and during the video content, similarly to when we watch shows on traditional TV. More often than not, viewers won’t complain about these ads randomly popping out while watching their favorite show on Netflix or Hulu, which makes this type of advertising more effective.
The future of CTV advertising
Given the popularity of Netflix and other similar OTT providers, it is no wonder that more and more companies and brands will follow suit in promoting their brand via CTV advertising. Here are some obvious reasons CTV advertising is the future of advertising.
1. It is everywhere
It is said that around 60 percent of US viewers have a CTV, while UK households are slowly following suit. More likely, other countries with Internet access will also follow as well. This is the right time for brands to take advantage of the CTV boom and ride on its popularity.
2. Viewers do not complain about CTV advertisements
As mentioned, it is less likely that viewers would complain about ads popping out of nowhere while watching their favorite show. It is basically like watching traditional TV shows where advertisements appear before and during a particular show. In fact, one study revealed that CTV ads are less annoying than those of traditional TV ads.
3. It has younger but wider viewership
Millennials also play a major role in the rise of CTV advertising. For one thing, they are more digital savvy and would more likely to prefer streaming over watching traditional TV shows.
Advertising trends come and go. That is why brands should be aware of what is in in the world of advertising by knowing their customers and where they currently are.