The television industry is evolving continually and has now much changed than before. Once, it was considered impossible to watch TV on the internet. Now watching TV on the internet is a necessity, and for millions, it is not possible to live without it.
Many people have refused traditional TV services and ditched watching it for internet bound TV. The conventional TV programming is facing decline. In 2018, about 2.8 million consumers canceled satellite or cable subscription.
A significant reason behind ‘cutting the cord’ is the streaming media options for connected mobile devices and TVs. While, for consumers, this provides additional options. Now businesses are marketing with online TV.
Connected TV is not creating any issue for marketing and advertisers, as marketing your business using connected TV is in demand.
Although there are relatively fewer content providers who are dominating the realm of streaming media, there also exist smaller other players who rely mainly on ad support. Even the hardware utilized in connected TVs and hardware components often have combined ad platforms.
What is Connected TV?
Connected television is a device that connects to the internet like the internet-cable TV set and video game consoles such as Blu-ray disk player, PlayStation, Xbox, or streaming video devices as well as support multimedia.
To ease the concept for understanding, the connected television (CTV) is the combination of web 2.0 features and the internet into new-generation television sets. In other words, CTV is defined as a hybrid TV merging television and computer technology.
Connected TV is also sometimes known as smart TV because its user interface resembles the smartphone UI. With CTV, it is easy to access different video streaming services such as YouTube, Netflix, Pandora, Hulu) and search digital content.
Difference Between CTV and OTT
Connected TV (CTV) and over-the-top (OTT) terminologies are often confused. Over-the-top is the content offered by infrastructure providers and is watched on-demand and Live, such as Netflix, YouTube, Pandora, or Hulu.
To watch that content, the user needs a device. Examples of businesses using OTT are Smart TVs, Amazon Fire, Apple TV, or Roku.
Why Owning a Connected TV Business is Beneficial?
CTV benefits are exponential. Now Businesses are using connected TV channels for marketing. Rich video ads make the user experience better when paired with a profoundly programmatic environment and generate reports faster.
Advertisement Boom on CTV
There is at least one CTV in about 70% of homes. Since 2015, CTV streaming at home tripled and replaced the desktop option upon binge-watching. The impressions of advertisers that run their ad campaigns over connected TV increased by 30 percent.
Among all, more than 50 percent of impressions serve to Connected TV devices. The completion rates for CTV advertisement are 27% and 32% higher as compared to desktop and mobile, respectively.
Although there are some challenges, CTV is no-doubt effective and offers an added opportunity to increase the current campaigns.
CTV produces more opportunities for marketers and advertisers to approach the right audiences and can showcase their products in an environment of a living-room with measurement experiences.