TV media buying is hotter than ever, and for good reason. In the United States, the global leader in ad spend, nearly $300 billion will be spent annually, with connected TV ad spending growing at an even faster pace. Television is the second most profitable ad spend after search, and it’s showing no signs of slowing down.
Nowadays, more and more TV media buying is happening through programmatic channels such as connected TV. This is because marketers are interested in reaching their target audiences with laser precision and they know that connected TV provides this opportunity. With connected TV, marketers can target specific demographics, interests, and even households.
Connected TV advertising provides an immersive, engaging experience that traditional television cannot match. In this blog post, we will discuss the benefits of connected TV advertising and why more businesses are turning to it to reach their target audiences.
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Why is Connected TV So Hot Right Now?
There are numerous reasons why connected TV is taking over the television landscape. Here are a few of the most notable:
Improved Targeting
As we mentioned, one of the main reasons businesses are turning to connected TV is for the improved targeting capabilities. Connected TV allows you to target specific demographics, interests, and even households. This ensures that your ad reaches the right people and that you are not wasting your budget on ads that no one will see.
Since most content viewed on connected TV platforms is viewed with intent (someone selects to watch it), your ad has a higher chance of being seen and remembered. Additionally, it has a much higher chance of being relevant to your target viewers.
Enhanced Engagement
Another reason connected TV is becoming so popular is because it allows for enhanced engagement with viewers. Connected TV ads are sometimes interactive and allow viewers to take action, such as clicking through to your website or downloading a coupon. This level of engagement is not possible with traditional television.
On streaming platforms like Netflix, viewers can even choose to watch your ad or skip it altogether. This provides an opportunity for you to create an engaging ad that will actually be seen by people who are interested in what you have to say.
Because connected TV ads are interactive, they can also be more entertaining and engaging for viewers. This means that your ad is more likely to capture attention and leave a lasting impression.
Increased ROI
Businesses are seeing increased ROI from their connected TV campaigns. This is because connected TV allows you to track and measure your results in a way that traditional television does not. You can see how many people saw your ad, how long they watched it, and what actions they took after viewing it. This data allows you to optimize your TV ad campaigns for maximum ROI.
Furthermore, connected TV is more cost-effective than traditional television. The improved targeting capabilities allow you to reach your target audience with laser precision, which means you are not wasting your budget on ads that no one will see.
What Does This Mean for Advertisers?
Connected TV is quickly becoming the new norm for television viewing. This means that advertisers need to start shifting their budgets to connected TV to stay ahead of the competition. Connected TV provides an immersive, engaging experience that traditional television cannot match. Here are some trends to watch for in connected TV advertising:
More businesses will allocate their advertising budgets to connected TV.
If you are a business owner, an advertising agency executive, or a marketer, it is important to understand the benefits of connected TV advertising and how it can help you reach your target audience.
As competition in the connected TV space heightens, marketers will also need to be more in tune with the content that viewers engage with on connected TV platforms.
Advertisers will need to create more engaging, interactive ads.
To capture an audience’s attention, your ad must be entertaining and engaging. This means that you will need to put more thought into your ad creative by thinking outside the box and truly understanding your analytics.
Additionally, your ad must be relevant to your target audience. If you are targeting a specific demographic, make sure that your ad is tailored to their interests.
We will see a shift from traditional television ratings to connected TV ad analytics.
Connected TV ad analytics are different from those of traditional television. Connected TV allows you to track and measure your results in a way that traditional television does not. This data is important in understanding how your ad performed and how you can improve it for future campaigns.
Connected TV will become more cost-effective as the technology improves.
As more platforms adopt connected TV, the technology will become more refined and improved. This will lead to a decrease in costs for businesses, making it more accessible and affordable. Even as the space becomes flooded with competitors, businesses that are early adopters of connected TV will have a leg up on the competition.
Being an early adopter of any new technology has its advantages. In the case of connected TV, businesses that are early to adopt will have a better understanding of the platform and how to use it effectively. They will also be able to build a loyal customer base as more viewers flock to connected TV.
Bringing Connected TV Advertising to Your Business
If you are ready to take your television advertising to the next level, consider adding connected TV to your media mix. Here are a few tips to get started:
- Research the different connected TV platforms and choose the one that is right for your business.
- Understand the targeting capabilities of each platform and how you can use them to reach your target audience.
- Create engaging, interactive ads that are relevant to your target audience.
- Measure your results and adjust your campaigns accordingly.
What are you waiting for? Get started with connected TV today and see for yourself what all the hype is about!
