Connected Television (CTV) is the term for any type of TV that is capable of streaming digital video. It might be a Smart TV or have an externally-connected device to enable streaming of video content onto a tv screen.
Some of the various types of CTV include smart televisions, gaming consoles (such as the PlayStation 5 and Xbox Series S/X), Amazon Fire Stick/Amazon TV, Apple TV, Roku, or any one of several up-coming devices.
The uptick in popularity of CTV and OTT (Over-the-Top) has caused many consumers to ‘cut their cords’ - a rising pattern of customers withdrawing their traditional TV payments in favour of only using these streaming or on-demand platforms.
OTT refers to any video content that is streamed by users directly from the internet. These services can be streamed to devices such as PCs and mobiles as well as TVs. Streaming platforms include services like Netflix, Amazon Prime, HBO Max, Britbox, Disney+ and countless others.
CTV, however, represents a branch of OTT, specifically smart televisions with the capability of connecting to the internet. CTVs are the intermediaries of Over-The-Top services.
CTV can assist your business reach the ever-growing audiences that are turning away from traditional terrestrial television, or indeed no longer watch traditional TV at all.
For advertisers, where viable, it is a good idea to combine advertising purchases across both traditional and CTV platforms, with the knowledge that CTV advertising provides sharper measurement and improved control over the audience of ads and how often they are seen.
More than 85% of consumers have access to a Connected TV device. The majority of people switching to this style of television can be credited to the flexibility that it provides viewers. Streamed content is very cheap when compared to traditional satellite and cable television. It has a higher appeal to consumers because it allows them to watch on demand. Due to this, the already quickly increasing adoption rate of CTV is expected to continue rising.
Some of the advertising demographics and parameters that CTV offers can be extremely accurate and detailed, such as age, income, gender, shopping intent, past purchasers, and website home page visitors. This variety of parameters means that advertisers who use them benefit far greater than those advertising on linear TV. Linear TV advertising casts a wide net and only targets the audiences of certain channels or programmes. Also, CTV ads employ streaming data, which means collected user data can be analysed to provide insights across other platforms too.
Linear TV ads traditionally cost a LOT of money. This obviously varies depending on what the ad is being shown against. For example, one thirty second ad in this year’s Super Bowl in the US cost an average of 6.5 million US dollars, whereas an ad on a small local TV station in the UK might only cost between £150 to £300. CTV ads offer a much lower cost of entry compared to linear TV. This means that Riviera Television – your strategic partner – can deliver incredible value as a streaming service provider.
CTV advertising is more cost-effective because it provides access to the internet, accurate targeting, and precise inventory selection. Buyers can deliver ads to hard-to-reach and highly specific audiences, which will improve audience quality. This increases ad relevance to match consumer preferences and helps connect campaigns to other online and offline behaviours.
As well as more accurate ad targeting, CTV also allows for extremely accurate measurement and analysis of collected user data. The user data extracted from CTV advertising is far more detailed than the kind of data that can be obtained from traditional linear TV advertising.
In the USA alone, 72% of the entire adult population in 2020 were regular CTV viewers, a number that is growing rapidly. And some other countries show a similar level of uptake.
CTV and OTT is set to replace most terrestrial TV viewing in many countries.