Why Brands Should Embrace Connected TV Advertising
The world of advertising has undergone a significant transformation in the last decade, with the rise of digital platforms and the growing popularity of connected TV advertising. Connected TV advertising has become an integral part of the global advertising landscape, offering advertisers an effective way to reach a larger audience and achieve their marketing objectives. This article will discuss the rise of connected TV advertising, its impact on the global advertising landscape, and the reasons why most brands should utilize this advertising medium as soon as possible.
The Rise of Connected TV Advertising
Connected TV advertising refers to advertising on television through connected devices such as smart TVs, streaming devices, gaming consoles, and OTT (over-the-top) devices. This type of advertising has grown in popularity in recent years, owing to the increasing use of these devices and the growing number of people who have cut the cord with traditional cable and satellite TV providers. Connected TV advertising has provided advertisers with a new opportunity to reach their target audience with relevant and engaging content.
The use of connected TV advertising has been on the rise, with more and more brands adopting this medium to promote their products and services. According to eMarketer, in 2020, US advertisers spent $8.11 billion on connected TV advertising, up from $5.29 billion in 2019, and the figure is expected to grow to $13.41 billion by 2023. This growth has been driven by the increased availability of ad-supported streaming services such as Hulu, Roku, and Pluto TV, which offer advertisers a way to reach a large audience through a single platform.
Effects on the Global Advertising Landscape
Connected TV advertising has had a significant impact on the global advertising landscape, and this impact is set to grow in the coming years. This type of advertising has disrupted the traditional TV advertising model, which was dominated by a few large networks and cable providers. With connected TV advertising, advertisers have access to a broader audience, and they can use targeted and personalized content to engage with their target market.
The impact of connected TV advertising on the global advertising landscape can be seen in the following ways:
A shift in ad spend: Connected TV advertising has disrupted the traditional TV advertising model, and this has resulted in a shift in ad spend from traditional TV to connected TV. According to eMarketer, by 2023, connected TV advertising will account for 20% of all TV advertising spend.
Personalization: Connected TV advertising has made it possible for advertisers to personalize their ads to a specific audience. This type of advertising allows for more targeted and effective messaging, which can result in a higher ROI for the advertiser.
Better measurement: Connected TV advertising has made it possible to measure the effectiveness of advertising campaigns more accurately. Advertisers can track the number of impressions, the number of clicks, and the conversion rate of their ads, giving them a better understanding of how their campaigns are performing.
Increased competition: With the rise of connected TV advertising, there is an increased level of competition among advertisers. This competition has led to more innovative and creative advertising campaigns, which can benefit the industry as a whole.
Why Most Brands Should Utilize Connected TV Advertising
Connected TV advertising offers many benefits to brands, making it a worthwhile investment for most businesses. Some of the reasons why brands should utilize connected TV advertising include:
Large Audience: Connected TV advertising provides access to a large audience. With the increasing use of connected devices, advertisers can reach a larger number of people with their message.
Better Targeting: Connected TV advertising allows for better targeting of the audience. Advertisers can use data to create more personalized and relevant messaging, leading to a higher engagement rate.
Increased ROI: Connected TV advertising can result in a higher ROI for advertisers. By targeting the right audience and using personalized messaging, advertisers can achieve better results and see a higher return on their investment.
Improved Tracking: Connected TV advertising allows for better tracking of ad performance. Advertisers can track metrics such as views, clicks, and conversions to gain insights into the effectiveness of their campaigns and make necessary adjustments.
Cost-Effective: Connected TV advertising can be more cost-effective than traditional TV advertising. Advertisers can target their audience more precisely, reducing the need to spend money on reaching a broader audience.
Greater Control: Connected TV advertising provides greater control over the advertising campaign. Advertisers can choose which channels and devices to use, the frequency of ads, and the timing of their campaigns.
Flexibility: Connected TV advertising offers flexibility in terms of ad format. Advertisers can use a range of ad formats such as display, video, and interactive ads to engage with their target audience.
Conclusion
Connected TV advertising has become an essential part of the global advertising landscape, offering brands a way to reach a larger audience and achieve their marketing objectives. As the use of connected devices continues to increase, so too will the popularity of connected TV advertising. Brands that adopt this advertising medium will benefit from a large audience, better targeting, increased ROI, improved tracking, cost-effectiveness, greater control, and flexibility. In today's digital age, connected TV advertising is a worthwhile investment for most brands, and those who do not embrace it risk falling behind their competitors.