What is CTV advertising: The best strategy for CTV advertising [2021]

What is CTV advertising? Connected TV (CTV) advertising is still a new advertising platform that has not been fully explored. The CTV industry is growing and is predicted to be $12 billion by 2022, but most marketers don’t know how to use this advertising platform for their benefit. This article will show you what is CTV advertising and provide tips on how to get started with your own campaigns.

what is ctv advertising
what is ctv advertising

What is OTT Advertising?

What is CTV advertising? Connected TV advertising, or OTT advertising as it is often called, is a type of television advertising that reaches people through the Internet. It involves placing an advertisement on an “over-the-top” media service such as Hulu .

Why OTT?


The advantage of using an OTT service is that you can reach a large audience. There are approximately 266 million smart TVs and 22 million VR headsets in the United States, which means there is a lot of competition for advertising space on big traditional TV networks like NBC and Fox. Using an OTT Platform will allow advertisers to reach more people in less time.

Target Audience

Another benefit of using an OTT service is that they allow advertisers to target a very specific audience. For example, if you advertise with Hulu , then your ad will appear for people who watch TV shows or films that are similar to the one you are advertising. You can even target ads by demographics such as age, sex, and occupation.

Data analysis

Lastly, OTT services provide you with detailed data about specific viewers. You can make sure that your ad is playing to the right people at the right time and adjust future campaigns accordingly.

Cost efficiency

Since OTT advertising has not yet been fully explored, it is much cheaper than traditional forms of TV advertising like cable or satellite. The average cost of a 30-second commercial during Super Bowl LII in February 2018 was $5.02 million.


OTT advertising is growing every year, but it still has not reached its full potential. Creative minds are constantly coming up with new ways to use this platform for their benefit. A great example of an innovative campaign comes from the “Hire Me” campaign created by David Eastman in partnership with Hulu . The campaign used ads that played after a program

Key Challenges with OTT Advertising

In September 2016, ComScore estimated that only 11% of TV-connected homes in the U.S. were using a connected OTT service. That means that companies have to be creative when it comes to getting their ads in front of the right people, which sometimes requires very specific targeting. It is also difficult to measure how effective an ad is on an OTT platform, especially when it is played after the program.

What is CTV advertising?

What is CTV advertising? Connected TV advertising (CTV) is short form, skippable advertising placed on any CTV that can be connected to the internet.

CTV is often confused with OTT because of the similarity in name, but the two are not related. OTT is a term used to define TV content that can be streamed via an internet connection, whereas CTV refers to any connected TV that has a digital display and is connected to the internet.

See also  What is Share of voice (SOV)?

Examples of CTV inventory include: smart TVs, games consoles such as PlayStation and Xbox, set-top boxes such as Apple TV, Roku and Sky box.

CTV advertising is often seen as the holy grail of video advertising because it offers a highly targeted display mechanism that delivers impressions closed to viewers who are actually in the market to purchase products or services.

This means your ads are seen by the right person at the right time.

CTV advertising is clearly an opportunity for marketers to grab a larger share of that market, but there are a number of things you need to know before diving into this new medium.

This article will take a look at what’s involved with CTV advertising and highlight some common questions in the space.

connected TV advertising
connected TV advertising is ads that can be placed on any TV or device that can be connected to the internet

And What is Not CTV Advertising?

You already know What is CTV advertising, but What is Not CTV Advertising? It is not broadcast advertising. CTV advertising reaches viewers directly through the internet, bypassing traditional broadcast waves.

It is also not OTT (Over-The-Top) Advertising which comes in any over-the-top media service such as Hulu .

Traditional TV networks that use cable or satellite to deliver their content can now offer a direct-to-consumer experience via apps on traditional TV sets.

What types of ads are available on CTV?

The common type of ad you will see on What is CTV advertising is the skippable pre-roll, which runs before the content itself starts streaming. However, other formats such as in-stream and overlay ads can also be found on different platforms.

What kind of scale does CTV advertising have?

What is CTV advertising’s kinds of scale? CTV has a significant amount of scale, especially in the US market. According to eMarketer, there are more than 100 million CTVs in the US alone – with that number growing every day.

How does connected TV advertising work?

What is CTV advertising? CTV advertising is served based on the profile of a user and where they are watching TV. This happens via an auction process, where the highest bidder wins.

How is CTV advertising bought?

Just like traditional TV advertising, What is CTV advertising is sold through media agencies that act as the clearing house for all media buys. The buying process for CTV Analytics ad inventory is extremely similar to standard broadcast inventory and runs via an online auction format.

Is CTV Advertising Interactive?

Yes, to a certain extent. Skippable ads include user interaction as standard and many platforms now offer the ability for marketers to add additional functionality (i.e., buttons) within their ads.

What needs to happen so that CTV is really interactive?

For CTV to be really interactive, or bidirectional, a  second SDK screen is needed. This means that the TV viewing experience can be enhanced through a second device, such as an app or tablet.

To make CTV 100% interactive, the second screen needs to be synchronised so that data can travel between screens. This means showing interactive ads on TV, which are linked to mobile devices.

How does targeting work on CTV?

What is CTV advertising targeting? CTV allows advertisers to target by geography, but it also allows for extremely specific targeting based on household income, age, gender and other qualifiers. Marketers can target their CTV campaigns to the right audience just as they would if they were buying digital or TV through a traditional media agency.

Is CTV worth your time and money?

As you know What is CTV advertising. the OTT / CTV advertising market is growing very fast, it might be worth your time and money if you know what to expect.

First, it’s important to understand that only a small portion of the TV ad budget will shift to OTT in the near future (if at all). Digital media budgets are still increasing globally; however, it’s important to consider that OTT / CTV advertising is not the only digital growth area. Mobile, social media, and especially programmatic are growing exponentially as well.

With over 400 million unique users now watching content on connected TVs every month (according to projections from Digital TV Research Ltd), it can be argued that this audience has potential but proper planning and strategy will be key for successful marketing and revenue.

OTT platforms offer a wide range of opportunities for brands and advertisers to reach audiences, but as with any new media format, it is essential to think beyond the capabilities of the medium. Connected TVs are simply an extension of home TV viewing — they do not provide unique brand experiences or allow innovative brand interactions.

See also  Marketing Management - 8 Things You Need to Know

As mentioned before, the main platforms operators are already managing other advertising opportunities like mobile, social media, and programmatic (this can be seen in their ad serving technologies). It’s important to consider that the OTT / CTV market is still very young; revenues are expected to grow exponentially but not to reach significant numbers

How CTV Can Earn Additional Time with the Target Customer?

The most important factor to consider is the importance of content. Connected TV viewers are likely to watch more premium content than they would on other mediums, but they will choose what they want to see and when.

This means that people who watch OTT / CTV can be considered as “lean forward” audiences. A video ad served on an OTT platform can be considered as a relevant piece of information and, therefore, considerably more effective than banners on the web.

OTT / CTV advertising needs to become contextual and relevant like TV advertising if it is to succeed in its bid for additional time with the target customer.

“If you build it, they will come.” This is the wrong approach to take when engaging with an audience through OTT / CTV advertising. Consumers are in control, they choose when and what to watch on connected TV.

Why On-Demand TV is better suited than Live TV for the user Experience with CTV Advertising?

What is CTV advertising? CTV allows advertisers to communicate with customers who are already in-market for a product or service. This is unlike other platforms, where viewers may represent only a portion of their target audience.

What is CTV advertising biddinguses standard industry metric such as viewability, brand awareness and demographics to help set the price of the impressions.

CTV also allows for more creative executions, such as using data to dynamically serve ads at the beginning of a show or video content. This can improve engagement and user experience.

What are some common misconceptions?

The biggest myth about What is CTV advertising is that it’s just another way to watch TV. While this may be true, it is important to remember that CTV has a much more targeted approach because the inventory is exclusive.

CTV advertising also allows for a higher degree of ad integration into content and offers a number of standardised forms of measurement such as Nielsen Digital Ad Ratings – so ads can be dynamically inserted by date, time-of-day, device or environment.

Who are the key players in CTV advertising?

Many of the major online video platforms such as YouTube and Hulu have some form of CTV inventory, but there are several specialist platforms that offer a higher degree of targeting and optimization for CTV ads. These include, BrightRoll and Videology, to name just a few.

CTV advertising platforms

CTV platforms
CTV platforms

Below are the main What is CTV advertising platforms:

  • AT&T TV is an over-the top (OTT) tv service that offers multichannel streaming. It utilizes Android TV based set-top boxes rented to subscribers and AcornTV, a subscription video streaming service available on Amazon Fire TVs, Apple TVs or Roku devices among others.
    Amazon Prime Video also provides access for members of the company’s “Prime” program which includes free two day shipping benefits when buying certain items from their store – this means you don’t need any additional subscriptions like Netflix in order enjoy watching movies online!
  • The Apple TV+ platform is a subscription video on demand streaming television service featuring award-winning series and films.
  • BritBox offers an online digital video subscription service focused on British television shows, movies from our public broadcasting networks (BBC, ITV) as well as original programming produced in the UK or abroad that are specially designated for release here by rights holders before they appear elsewhere globally.”

Marketing Strategies for OTT/CTV

What is CTV advertising strategy. There are many ways CTV advertising can be implemented to help marketers reach an audience. The most popular strategies are:

Go Omni-Channel and Retarget your Audience

Using CTV for re-marketing can be very successful. A better user experience on OTT services allows many of the ads to appear in the stream of content. This means that if someone watches a certain amount of an ad, then it will typically allow for another ad to play until they are either done watching or the ad playback is over.

There are a number of ways to bring audiences back to your properties. One way is by offering offers during the initial ad spot or even afterwards, creating a higher level of engagement with your users and having them come back later.

See also  15 Top eCommerce Plugins to To Power Your Store in 2021


OTT offers a number of different targeting opportunities. You need to target based on a number of factors including: location, demographic info, device ID and even re-marketing audiences through their IP address. Personalization can be used to help increase the reach potential by playing ads to the right people at the right time in order to improve conversion

Have a robust Dataset

Having a solid dataset of users can allow you to use that information in order to better target your ads. This means using data such as purchase history, demographics, browsing habits and even social media preferences to create the most relevant experience for the audience.

Use programmatic

Programmatic buying is a way advertisers can buy and optimize their CTV advertising inventory through use of automation technology. There are a number of DSPs (Demand Side Platform) available that can help you get started and help increase the success rate of your campaigns.

Optimizing your CTV ads

There are a number of ways advertisers can optimize their online video ads.

The most effective way is by utilizing the data you have collected on your users and finding out what their preferences are in order to buy more targeted advertising.

Ultimately, whether you use CTV or any other kind of OTT service for streaming movies, shows, sports or any other form of content you must always be aware that the user experience is the most important thing. If people cannot figure out how to use your website or mobile app then they won’t stay on it for long, no matter how good your ads are!

What is CTV advertising Metrics to follow when starting a CTV campaign

What is CTV advertising metrics to follow? Connected TV has its specific metrics, so it’s extremely important to follow them when you start a connected TV campaign:

  • Viewers watching time (and frequency)
  • Video ad completion rate;
  • Number of views;
  • Advertising recall;
  • Brand favourability and purchase intent.

Below is an overview of the main metrics to consider when analyzing campaign impact:

Targeting for OTT advertising campaigns   For targeted ads, the main data points used are:

  • Target audience (demographic details);
  • TV viewing habits;
  • Purchase behavior.

Things to think about before you start a CTV ads campaign

Adopt Audience-first strategy

CTV advertising platforms are powered by data. Thus, having the right set of audience insights will help to drive more relevant ads and greater impact. You can also adopt a multi-screen approach, which means running the same creative on TV and VOD using cross-device targeting.

Keep in mind that different CTV models require different ad formats and ad-breaks types. For example, for subscription VOD platforms only pre-rolls and mid-roll ads are allowed, while AVOD platforms allow skippable as well as non-skippable 30/60 second ad formats.

If your audience is using mobile devices at the same time as connected TVs, it makes sense to advertise on all screens simultaneously.

Make a narrative campaign

Your storytelling efforts can make an excellent CTV/OTT campaign. You must keep a cohesive narrative, whether you have 15 seconds or one full minute to tell your story.

Ensure consistent branding and messaging across all screens.

Connected TV FAQ

What is the difference between OTT and CTV?

OTT is a blanket term for all connected devices and smart TVs. This includes PCs, laptops, tablets, phones and any other device with an internet connection that can access video content.

CTV describes the viewing experience of streaming video on television sets (via connected TVs and set top boxes) through dedicated applications (such as Netflix or YouTube).

What is an example of CTV?

Cord cutting, also known as cord shaving, is the act of cancelling traditional pay TV services (such as cable or satellite) in favor of online streaming alternatives. Popular OTT services include Netflix and Hulu, while YouTube has moved into live-streaming TV with its recent launch of YouTube TV.

What’s Next?

Once you have finished your Connected TV campaign there are a number of metrics that should be tracked. Some good metrics to track are frequency, average time viewed per ad, first interaction vs. linear etc. Keep in mind that because CTV is very addressable it’s important to keep an eye on key demographic information as well, including age, gender, income range, and education levels.

See more articles in category: Advertising

Leave a Reply

Back to top button