What is CTV Advertising and Why You Should be Using It?

CTV advertising is a term that’s gaining traction in the marketing world. Whether you realize it or not, you see CTV ads all the time, and they have significant potential to grow your business. Let’s explore what CTV ads are and discover how they can drive growth.

What is CTV?

Before diving into the advertising aspect, let’s first explain what makes CTV special. To put it bluntly, Connected TV (CTV) is the only type of TV entertainment that people watch anymore. Linear TV—what we all remember as cable—requires viewers to watch programs as they air on specific channels. With the rapid growth of CTV, linear TV has experienced a sharp decline.

CTV offers viewers greater freedom over what and when they watch. Subscription giants like Netflix, Hulu, and Peacock are all CTV platforms, as are many free, ad-supported options like Freevee, Pluto, and Fubo. While the average American subscribes to 2.9 CTV services, the rise of ad-supported platforms has made streaming free content easier than ever.

Benefits of CTV advertising

CTV advertising is changing the way companies run commercials. Here are some of the benefits:

Enhanced Targeting Capabilities

Gone are the days of targetless, guess-and-check advertising. Marketers can now precisely target their desired audience, eliminating the uncertainty of when and where their viewers are watching. They can place their ads in front of the right audiences with strategies like:

• First and third party audiences
• Audience demographics
• Geographic location data
• Website remarketing

Real-time optimizations

Traditional advertising is infamous for how long it takes to yield performance. CTV ads eliminate this frustrating problem with real-time reporting. If a campaign isn’t working, marketers will know right away and be able to optimize and adjust it. This is a game-changer, especially for industries that rely on seasonal marketing sprints.

Increased viewer engagement

Streaming has made TV watching more intentional. CTV viewers are more likely to be engaged with their shows than cable viewers flipping from channel to channel. This leads to more receptive audiences and much higher ad completion rates, with the majority of CTV viewers watching these ads to completion.

Cost-effective

Despite having much higher CPMs than other types of digital advertising, the enhanced targeting of CTV ads makes them much more cost-effective than traditional TV advertising. With such a high completion rate, CTV ads have a relatively low Cost Per Completed View (CPCV). Their real-time reporting and stark advantages over traditional TV advertising make it much easier for marketers to spend smarter.

CTV ads like this one for Vineyard Wine Cellars blend the formula of classic TV commercials with powerful CTA capabilities of modern digital advertising.

CTV is one piece of the puzzle

CTV advertising has several benefits that make it a no-brainer for many businesses, but it should not be the only arrow in your quiver. Smart marketers include CTV advertising in their omnichannel strategy. From spreading brand awareness to retargeting warm leads, CTV advertising can help you grow and nurture your audience with some creative flair.