In the world of TV advertising, the language we use is always changing.
Just a few years ago, our conversations with clients typically revolved around whether they were advertising on satellite TV or sticking to the conventional terrestrial channels.
Today, this distinction has faded, as most ‘linear’ channels are accessible across various broadcast platforms. A term that has become a slightly annoying bit of TV jargon.
The Future of TV Advertising: Connected TV (CTV)
Currently, in almost any article about “the future of TV advertising,” you’ll find people in Adland getting very excited about Connected TV (CTV).
The question remains: what is it, and what influence will it have on the creation and distribution of TV advertisements in the UK?
What is Connected TV? (CTV)
Connected TV refers to any television set with internet connectivity, including smart TVs, set-top boxes, TV sticks, or gaming consoles, broadening the landscape of TV advertising.
While smart TVs have been a staple in over two-thirds of British households for more than a decade, the concept of connected TV encompasses a broader range.
The Rise of OTT Content Consumption
Any video content streamed over the internet rather than traditional cable, satellite, or aerial means is known as OTT (over-the-top). Sorry to introduce another term to the lexicon of TV advertising.
Beyond traditional TV channels or streaming services, an increasing number of viewers are turning to their TVs for online video content. In the USA, reports suggest that nearly half of YouTube viewers prefer streaming on their televisions rather than on phones or other devices.
After all, the experience of watching any moving image is likely to be better on a 72″ screen rather than squinting at your mobile.
Any video content streamed over the internet rather than traditional cable, satellite, or aerial means is known as OTT (over-the-top). Sorry to introduce another term to the lexicon of TV advertising.
Beyond traditional TV channels or streaming services, an increasing number of viewers are turning to their TVs for online video content. In the USA, over half of YouTube viewers are using a video-streaming platform to watch their favourite YouTube channels on a TV.
The experience of watching any moving image is likely to be better on a 72″ screen rather than squinting at your mobile.
What are the benefits of CTV for Advertisers?
From an advertising perspective, the emergence of Connected TV has revolutionised TV advertising, offering advertisers unprecedented opportunities for targeted advertising and the ability to measure the impact of their TV ads with greater precision than traditional, linear TV broadcasting allowed.
Advertisers can target commercials based on viewers’ demographics – their age, gender or interests, based on data that has been collected from their online activity.
With geographic targeting, TV advertising can be confined to specific regions; for instance, a car dealer in Hastings can ensure their commercials reach only the local audience, rather than offering test drives to viewers in distant Glasgow.
In the UK, Sky AdSmart (launched in 2014) is the leader in this technology; so while you may be watching the car dealer’s commercial, your next-door neighbour (or maybe even someone else in your own home) may be watching an ad for an airline.
Best of all, CTV commercials can offer a level of interactivity that consigns traditional direct-response TV ads (“call us now on 0800…”) to the Stone Age.
Whether that’s learning more, or even making a purchase—right from their remote control or CTV device. Some TV ads even incorporate a QR code to seamlessly connect viewers to a company’s website or an online promotion.
Connected TV enhances the TV advertising experience by allowing users to pause and resume their viewing on any device, at any location, maintaining continuity in where they were up to. It gives new levels of control to advertisers, such as specifying the exact placement and timing of their ads.
The overall user experience can be much better as people tend to like getting personalised recommendations based on their viewing or purchase history. Even though in surveys people often complain that they don’t like being targeted by advertisers.
Advertisers benefit from analytics and campaign tracking, gaining insights into impressions, completion rates, and detailed performance data, such as website visits, app downloads, or online purchases generated by their TV ads.
A main attraction of CTV advertising to an advertiser is the potential cost efficiency. By targeting your ads to your desired audience, you can (in theory at least) eliminate wasted impressions and thus increase the overall efficiency of your campaign.
The Future is Connected: Embracing CTV
The rapid integration of Connected TV (CTV) devices across the UK has significantly transformed TV viewing habits, especially among the younger demographic. This change has not only elevated CTV’s role in television advertising but has also marked a notable preference shift, particularly evident in the statistical representation of viewership.
CTV’s share of total TV consumption among UK adults now stands at a notable portion, while among those aged 16-34, the adoption rate is even more pronounced, underscoring a generational shift towards Connected TV platforms.
The advance of CTV does not seem to be a major threat to traditional linear TV viewing, which remains a staple in TV advertising. Many people are still happy to switch on their favourite channel, lie back on their sofa and lap up a sequence of programmes and adverts delivered the traditional way.
Linear TV, a key component of TV advertising, still reaches over 80% of all adults in the UK every week. And of course, with the availability of over 400 channels, advertisers can use traditional media buying options to optimise their campaigns to reach their intended audience quite effectively.
CTV advertising offers expanded reach, precise targeting, enhanced viewer engagement, measurable results and the possibility of improved cost efficiency within the realm of TV advertising.
Brands can effectively leverage the benefits of both linear TV and CTV to maximise their overall marketing effectiveness in TV advertising.
Embrace the opportunities that this rapidly evolving technology offers, and you can stay ahead of the curve in the ever-changing landscape of digital entertainment.
In the rapidly evolving world of TV advertising, staying ahead means leveraging the latest technologies and strategies.
With over 30 years of experience, we specialise in harnessing the power of Connected TV (CTV) to create advertising that’s not just seen but that gets results.
Choosing Space City means embracing the future of advertising without the burden of traditional agency costs. Our expertise in producing creative, cost-effective, and technically polished ads positions you perfectly in the ever-changing TV advertising landscape.
Interested in exploring how Connected TV can revolutionise your advertising efforts? Have questions about our production services? Or simply want to discuss your next project idea?
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