In times of economic crisis, brands typically cut marketing budgets first - giving up on expensive TV ads. However, reach video campaigns are still effective and relevant. Even when the upfront cost is inefficient marketers and brands should still pay at
tention to the Smart TV viewers, even in the face of poor economic conditions.
What is CTV?
Connected TVs are devices for broadcasting video content connected to the Internet. These can exist on Smart TVs, game consoles, and streaming services that allow users to choose what they want to watch.
They attract users in a more laid-back environment with interactivity, games and applications. With Smart TV, you can do everything you do on a smartphone, but on a bigger screen: watch YouTube, watch HBO, surf the Internet, listen to music in the Apple Music app, etc. Recently, even TikTok became accessible on smart TVs with their TikTok TV app, on Smart TVs running Android.
Smart TVs know their audience well and can show the user personalized video content that is relevant. Companies can launch targeted advertising and brand lift surveys, collect leads, increase conversions, and more.
The number of CTV users is growing.
According to Hub Entertainment Research’s report, three quarters (76%) of TV households say they own a smart TV, up from 70% a year ago and the majority (57%) of all TV sets are now smart sets, a proportion a quarter higher than in 2020 (45%).
CTV for Advertisers
CTV is becoming more attractive to advertisers due to the sheer number of advantages over regular/traditional TV. We’re all familiar with the process of unboxing our newest TV, and registering it to take advantage of its warranty. Well, during this registration process on CTV devices, this information is considered user-generated data. If opted-in – a users activity on their TV can be used as a targeting qualifier, ensuring more relevant ads are shown.
Additionally, the user is in control of the viewing, which allows the ad to be shown when they sit down to watch a TV program. This on-demand experience is counter to traditional television, where ads are shown based on TV ratings and are not tied to TV viewing by a specific user.
CTV advertising formats
Popular advertising formats are gradually extending to smart TVs.
Ad Pod (advertising block)
This format is borrowed from television advertising. This is a display of several commercials in a multi-roll format - the ads interrupt the video at the beginning (pre-roll), middle (mid-roll) or end (post-roll) of video content playback.
In-Stream Video Ad
Display one promotional video within an online streaming video. It can also be in pre-roll, mid-roll and post-roll format. A non-fixed placement format is also possible, when the publisher places the video at his discretion.
Video action
In October 2021, Google Ads launched YouTube Video Action ads on Smart TVs. Such ads have a link with a call to action, upon clicking the user will be able to go to the brand's website from a computer or smartphone. Moreover, watching videos on YouTube CTV is not interrupted.
Interactive video
In the interactive video format, the user can perform the target action right in the video without leaving the UI. The interaction begins with a call to action that takes the user to a feedback form, microsite, or another video. This allows you to further engage your audience and increase conversions.
Dynamic Creative
Dynamic creatives are able to adapt to each target audience segment, showing the ad that is most relevant based on pre-prepared templates. Depending on the segment, the color scheme, background, product description and their prices, button placement, etc. may change.
Banners
Banner formats include both static ads and those containing a video or interactive element, such as opening a full screen through a click. Such formats can be placed inside Smart TV services and in the LG Content store, Samsung Smart Hub and others.
Samsung content recognition technology
Samsung, like many of its competitors, is developing its own platforms for smart TVs. The South Korean brand is developing Samsung TV Plus, a free Internet TV available to all owners of the Samsung smart TVs. Users can watch 135 channels, and Samsung Content Network is responsible for adding ads.
In October 2020, Samsung launched the Samsung Ads platform for self-service advertising on Smart TVs. In it, advertisers can buy ads using an auction model in real time. Content recognition algorithms allow you to show ads at the most appropriate moment.
Ads from Google for owners of certain devices
The global IT giant has shown particular interest in advertising opportunities on Smart TV. It created the most popular Google TV service, with which only Apple TV is currently able to compete with. Android is part of the Google ecosystem. This means that the Display & Video 360 programmatic platform is enriched with data about the video preferences of smart TV viewers and makes it possible to broadcast ads.
Google Ads has separate device targeting. It's only available for Display Network and Video campaigns. Audience selection parameters are set in the same way as advertising on YouTube. Setting this targeting allows you to show ads to users who are connected to the Internet from certain devices.
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