Connected TV (CTV) refers to any device that enables a television to stream video over the internet. Some CTV devices include:
- Smart TV: A TV with the built-in capability to connect to the internet and access online and network-based content. It can stream video on demand, play music, and do a lot more without needing additional devices or equipment.
- Connected device: Commonly referred to as OTT devices, connected devices are connected to the internet and plug directly into a TV. Apps and videos can be streamed on the TV, regardless of whether the TV itself is a smart TV. Examples include Roku Express, Amazon Fire Stick, and Chromecast.
- Gaming consoles: While not streaming-first devices, gaming consoles act as the connection device with their built-in app stores that can be used to stream video content to a TV. Examples include Xbox, Playstation, and Nintendo Switch.
Whether you’re streaming video content from an Xbox, Chromecast device, or a Samsung Smart TV, you’re using CTV.
CTV advertisements can be delivered directly on the connected device interface, during commercial breaks (similar to traditional television) or while searching within an app. They can also be delivered as pre-roll ads before content plays or as post-roll ads after content plays.
Benefits of CTV Advertising
CTV ads are revolutionizing the interaction between viewers and TV ads, making it an increasingly important part of many brands’ marketing mix. App marketers can gain several advantages by implementing CTV advertising.
- Data-driven targeting: In contrast to traditional TV advertising, CTV audience targeting is highly sophisticated and allows for a deeper level of personalization. Marketers can go beyond basic demographics and reach the most valuable audiences by effectively utilizing first and third-party data.
- Engaged audiences: In most cases, CTV ads cannot be skipped or fast-forwarded and viewers are more likely to be engaged in the content. Marketers can use CTV to further drive engagement and capture audience attention through personalized or interactive ads.
- Cost: With CTV advertising, brands can reach audiences at significantly lower costs compared to traditional TV. Often, brands can insert ads in TV-like content and enjoy the added benefit of better targeting and reporting — without having to pay traditional TV commercial prices.