If you were a fly on the wall in the boardrooms of advertising agencies, you would find there is plenty of debate between connected TV advertising (CTV) and traditional TV advertising. However, most people ask the question “What is CTV advertising?” simply because the mainstream media rarely references it. Below, we provide a look at CTV advertising versus traditional advertising to determine which is most effective.
Is CTV Advertising an Unstoppable Train?
CTV ads are those that air on connected TV, meaning video piped into homes through the internet. According to Insider Intelligence, CTV ad spending will reach $30 billion by 2025. CTV’s appeal is that it is an affordable way to consume entertaining content without the financial anchor of a monthly cable TV bill.
CTV advertising is narrowly targeted, allowing businesses to zero in on viewers of certain demographics, those living in a specific geographic location, and those who’ve expressed interest in a value proposition. CTV’s merits are strong yet businesses are wise to shift their attention to CTV’s competitor in the form of traditional TV commercials.
Traditional TV Advertising
Traditional TV is still relevant as we segue through the increasingly complex digital age. Businesses looking to target viewers interested in a specific type of entertainment, those who watch TV during certain hours, or those in a specific geographic location find linear TV appealing. Linear TV is synonymous with traditional TV.
Traditional TV ads are presented to viewing audiences through cable or satellite as opposed to the web-based presentation of digitized TV after the cord is cut. Traditional TV commercials are especially effective when targeting older members of the viewing audience, be it baby boomers or generation X.
Variety reports 9 in 10 cable and broadcast networks experienced an audience decline in recent years. However, traditional TV commercials are still effective for location-based targeting and age-demographic targeting.
CTV Advertising is Highly Effective
CTV advertisers present advertisements with a narrower scope. Ads are presented to specific houses in accordance with everything from viewer entertainment preferences to personal interests and demographics such as race, gender, and age. Such a personalized approach to TV advertising is arguably superior to that of conventional commercials aired on broadcast and cable TV.
CTV advertising is also held in high regard as it reduces the risk of ad fraud. Moreover, CTV ads cannot be skipped, meaning they are viewable on the entire screen, ultimately boosting viewability, especially when contrasted to other digital ads. Add in the fact that most CTV ads are more affordable than those placed on regular TV, reaching the target audience at a lower cost, and there is even more reason to take the CTV route.
It is even possible for businesses to sidestep costs for CTV ads that fail to reach the target audience. In the end, it can be said without the slightest doubt that CTV ads produce optimal engagement, meaning viewers can consume a full ad when transmitted to consumers via the web.
The icing on the cake is the fact that some OTT advertisements are that much more engaging through interactive components, ultimately resulting in a more immersive experience than that available through conventional TV ads.
Measuring Results
CTV ad success is measurable in that businesses can gauge ad performance and make decisions based on accurate data. However, conventional TV commercials are also measurable in the form of Nielsen and similar rating services.
Reach and Flexibility
If your business’s primary aim is to use video ads to reach the masses across the nation, a region, or a state, traditional TV ads are optimal as they provide broad reach. Streaming content made available to viewing audiences through ads also provides broad reach yet this reach rarely matches that of cable and broadcast TV.
If your business’s goal is to connect with viewers in the Generation Z, younger millennial, and alpha age cohorts, CTV ads are optimal as these youngsters have largely cut the cord on cable TV.
Last but not least is flexibility. CTV ads are highly flexible in terms of ad timing and placement. There is also the ability to personalize ads for each unique platform. A business looking to connect with the target audience at the optimal time with the perfect message will find doing so is that much easier with CTV advertising.
In contrast, traditional TV commercials are more rigid, being limited to more general viewing audiences that may or may not have a need for or interest in the product/service advertised.