ID3AS Blog

Connected TV is taking the digital advertising world by storm! From getting your ads on the big screen without the big price tag to engaging with a generation who’s cutting the cord on conventional television packages, connected TV is home to the latest trend in video advertising that is quickly surpassing traditional TV ad commercials. 

So what exactly is Connected TV? Connected TV (CTV) refers to any television that can be connected to the internet and that can access content beyond what is available from a cable provider. This content includes ads that are programmatically bought and sold. 

These ads are shown on Roku, SlingTV, Direct TV, OnDemand, Apple TV, and similar providers. Beyond television, Connected TV ads are also shown on gaming devices that are connected to the Internet, such as Xboxes and PlayStations. These ads are shown on a computer and mobile streaming devices, as well as over-the-top (OTT) devices, which are streaming services offered directly via the Internet. 

With streaming viewership on the rise, the benefits of advertising via Connected TV go beyond reach. How does it work? Similar to how commercials play during a traditional television experience, users are willing to accept advertising in order to continue watching their content. Connected TV administers video advertising before and during the content that the user is watching. 

Why is Connected TV the future of video advertising? It’s simple: 

1. Connected TV is Everywhere: Studies show that 80% of households in the United States own a Connected TV streaming device, and this is only the beginning! 

2. Millennials and Gen Z-ers Love Connected TV: They are attracted to the content that is made available by powerhouses such as Hulu and Amazon, and no longer feel the need to purchase conventional television packages. 

3. People Don’t Mind Connected TV Ads!: Connected TV offers an experience that is close to traditional television advertising, however, there is a greater ability to target your audience based on the data that they provide to their streaming service. Since these services are less expensive than traditional TV, users don’t mind experiencing video advertising as a fair trade-off. 

4. The Opportunity is Vast: The massive growth of Connected TV is creating a huge opportunity for video advertising. As technology continues to improve, and even more people adopt the Connected TV experience into their homes, more TV ad dollars will shift in the direction of Connected TV. 

5. It’s Personalized: For example, on Hulu, some ads give the user the option to choose which ad experience they prefer. In turn, this gives the advertiser even more information about their target audience while making the ad much more relevant to that consumer, because it's now content they've chosen to consume.

It’s not a matter of if, but when, Connected TV Ads will become the preferred method of advertising over traditional TV! Get a jump start on your Connected TV strategies today, and contact the experts at D3.