Why Modern Marketers Should Embrace Connected TV in 2023

In association with StackAdapt

In this exclusive byline ahead of ATS Madrid 2023, Andrew Rose, VP sales, EMEA, at StackAdapt, outlines why marketers should be exploring CTV.

Connected TV (CTV) refers to a device that connects to or is embedded in a television to support video content streaming such as a smart TV. CTV allows users to access apps and streaming services like Netflix and Hulu, whether free or paid, to consume video content on demand. 

Today, viewers in Europe are increasingly using CTV to watch their favourite shows, and this has changed the way advertisers should think about commercial breaks. These days, viewers don’t need to plan for a specific day and time to watch their favourite shows. Through CTV, they can watch what they want, when they want. 

For advertisers, this means CTV is now an opportunity for reaching target audiences – and they are taking notice. In 2023, ad spend on CTV is predicted to grow by 14.4% year-over-year, while linear ad spend is projected to decline by 6.3%. Here’s why investment in CTV is growing, and why advertisers should add it to their media mix. 

CTV adoption is on the rise in Europe

The adoption of smart TVs and other connected TV devices is rapidly expanding. More than 67% of the UK population and over 63% of the German population already own internet-connected TVs. This trend is evident in other major European countries as well, indicating significant growth and promising scale.

The adoption of CTV has contributed to a phenomenon known as “cord-cutting.” This refers to the pattern of viewers who are cancelling their subscriptions to cable or satellite television services in exchange for streamed content. Viewers also appreciate the flexibility and consumer control that comes with CTV, as well as the fact that it’s generally a more economical choice compared to traditional cable or satellite TV. 

CTV advertising is cost-effective

Andrew Rose, VP sales, EMEA, StackAdapt

CTV ads offer a much lower cost of entry compared to linear TV. Traditional TV spots are expensive because advertisers are paying for ad slots that are limited, and at the mercy of the network. A traditional TV spot may be shown on TV, but it could appear at a time that doesn’t suit the advertiser’s ideal audience. 

CTV advertising is more cost-effective because it provides accurate targeting and precise inventory selection. Advertisers can use this digital channel to target highly specific audiences that can be hard to reach, which increases ad relevance to match consumer preferences and helps advertisers connect online and offline behaviours. 

CTV provides precision targeting

CTV works similarly to other programmatic media buys like display, native, and audio. CTV ads are sold as impressions on a particular audience that streams content on demand. These ad spots are purchased when a viewer fits into the indicated desired audience. They will then see the ad in full-screen, completely-viewable environments. 

When running CTV campaigns, advertisers can leverage targeting parameters like first-party audiences, third-party segments, and lookalike audiences. And like with other programmatic media, advertisers can assess progress against their campaign goals and metrics while a campaign is live.

CTV offers optimisation and measurement

Along with accurate targeting, CTV offers precise measurement and attribution. Advertisers can access data that goes far beyond the benefits of advertising on traditional TV because it’s possible to learn who is viewing and engaging with a CTV ad. From there, advertisers can optimise and retarget accordingly.

With customer data and insights from CTV campaigns, advertisers have the opportunity to maximise the impact of their advertising dollars. This is one of the biggest benefits of CTV advertising, especially compared to linear TV. 

With CTV it’s also possible to measure campaign results related to website visits or online purchases, as well as offline behaviour. The ability to track the impact of CTV campaigns with digital metrics, like video completion rates and offline results like footfall traffic or in-store sales, is a crucial benefit of CTV.

CTV can be part of a multi-channel campaign 

CTV is an effective programmatic channel to use on its own, but it works even better as a part of a larger media mix. Combining CTV with other programmatic channels like native advertising and programmatic audio will drive the best campaign results. This is because running a campaign on multiple channels ensures ads reach users wherever they are online. 

A multi-channel approach will increase the presence that an advertiser or brand has on various channels, creating more visibility. This reminds users consistently about a brand’s offerings. Appearing on multiple channels will also drive an increased likelihood of engagement.

CTV delivers advertisers flexibility and control related to audience, measurement, targeting, and the viewing experience. Although this channel can be leveraged on its own, its real power comes when it’s added as a complement to a broader digital strategy that requires a holistic approach for cost efficiency and reach. 

ATS Madrid 2023 will take place on 9th May at Teatro Amaya. Tickets and further information can be found on the dedicated events page.