Nothing to worry about if you don’t know much about what is connected TV advertising. The tech market is always changing, and new ideas come out every day—sometimes without us even realizing it.
But it’s never too late, you can still use new technology to help your business grow. The sooner you start using it, the quicker you will succeed. And this guide will help with it. Here we have answered everything related to this advanced TV Advertising:
- How does CTV advertising work?
- Who should opt for this type of advertising method?
- What are its Benefits?
- What are examples of CTV advertising?
- And most importantly how to Execute CTV Ads
So, if you are interested, please keep reading till the end. Let’s just start this post by understanding what does CTV mean in advertising.
What is Connected TV Advertising?
We see ads everywhere; on websites, mobile apps, and even while scrolling through social media. But do you remember the days when we used to sit right in our living rooms watching our favorite TV shows and an unwelcoming commercial popped up?
Yeah, I know those times have passed and now people are moving away from traditional cable TV and switching to CTV or I say smart TVs.
This modern way of watching television uses internet-connected TVs, streaming sticks (Roku, Amazon Fire Stick, Apple TV), and gaming consoles to deliver video content.
Placing ads on these streaming platforms is what Connected TV (CTV) advertising is all about.
This approach lets you tap into a huge audience watching their beloved programs every day. Plus, you can even target specific audiences (on the basis of their demographics, interests, and viewing habits) and ensure that your money is spent only on the consumers who are most likely to make a purchase.
Now, the question most likely crossing your mind is—how; isn’t it? If so, read the next section.
How Does CTV Advertising Work?
Advertising through Connected TVs is the new way of how brands engage with viewers. It makes sure that your ad is shown based on who the viewer is, not just what they are watching. This means your business has a much better chance of reaching the right audience.
- A Viewer Selects the Content
The process starts when an audience initiates to watch something be it a movie, TV series, or even live content on his CTV.
- Targeting Data Is Collected
Once the streaming starts, data is collected on details like viewing habits, interests, demographics, and even location. This is to pitch people who are more likely to be interested in what you offer.
- Real-Time Bidding (RTB) Happens
Now, here’s where things get really smart or I say an ad opportunity becomes available and an automated bidding process begins. Advertisers compete with each other through real-time bidding (RTB) to have their ads shown to the viewer. The ad goes to the highest bidder, and it instantly appears on the viewer’s screen.
But RTB isn’t the only way to buy CTV ads, you also have other options:
Open auction (RTB): Ads are bought in a real-time auction where the price changes based on demand.
Private marketplace (PMP): This works like an auction but is invite-only and just for premium ad spaces.
Programmatic direct: Here, ads are purchased directly at a fixed price, skipping the auction process altogether.
No matter which method you choose, interactive TV advertising ensures that your budget is spent wisely, and your ad shows to people who are more likely to take action.
- Your Ad Appears to the Right Viewer
Once the above is all complete, the winning ad is instantly placed into the viewer’s content within milliseconds, so there’s no delay. It is nothing like traditional TV ads that appear at set times, rather digital TV ads are personalized. Here, you are not just hoping the right person sees your ad instead you are making sure they do.
What Type of Businesses Should Use CTV Ads?
Any brand that wants to sell more, get more viewers, and need visibility beyond just word-of-mouth can opt for Smart TV advertising. No matter what industry you are in, you can connect with potential customers at the right moment.
However popular businesses that can benefit from this are:
- E-commerce Brands
- Entertainment & Streaming Services
- Automotive Industry
- Retail Stores
- Healthcare Providers
- B2B Companies
Top 5 Advantages of Connected TV Advertising
If you are still in doubt why should you even consider CTV advertising? Then the answer is simple; it works better, costs less, and gives you more control. You connect directly with viewers who actually care about what you offer.
And if isn’t enough, then let’s dive into the five biggest advantages that set it apart.
1. Precise Targeting
With CTV ads, you reach exactly who you want, not just anyone watching TV. You choose your audience based on their interests, behaviors, and even location. So, this means no more wasted ad spend instead you get a chance to put your message in front of the right people at the right time.
2. Higher Engagement Rates
People don’t just see CTV commercials—they actually watch them. Unlike traditional TV, where viewers might switch channels, CTV keeps them engaged. This type of interactive ads mostly can’t be skipped, and they run alongside content people actually want to watch. That means more attention, more impact, and more chances to turn viewers into customers.
3. Better Measurement & Analytics
You get real-time data on who watched, how long they stayed, and what they did next. These clear numbers show what’s working and what’s not, so you can make changes instantly instead of waiting for results.
4. Cost-Effective Compared to Traditional TV Ads
Cable TV ads cost a lot but still reach random people or major viewers who aren’t interested. CTV lets you spend smarter and target only the right audience. You get better results without overspending.
5. Omnichannel Marketing Integration
CTV connects with all your other marketing channels. So, when someone sees your brand ad on TV, they even find you on their phone, tablet, or computer. This way, you stay in front of them across multiple devices and create a strong and more consistent brand presence.
So, why settle on guesswork and outdated advertising when you can track and measure your marketing campaign results with ease?
What are Examples of CTV Advertising?
Here are some real-world examples of businesses successfully using interactive TV ads to increase engagement, reduce costs, and boost conversions.
1. Best Buy’s Black Friday Teaser on Max
Best Buy created a seasonal ad showing office workers secretly browsing Black Friday deals during work hours, with funny reactions.
Results:
- Used humor to make the ad relatable.
- Created a sense of urgency around limited-time deals.
- Made seasonal shopping feel fun and exciting.
What you can learn: Time-sensitive ads work well when they create urgency and excitement.
2. GEICO’s Parmesan-Themed Ad on Amazon Prime Video
GEICO’s ad compared choosing GEICO to love Parmesan cheese—the joke being that a customer never stops a waiter from grating more cheese onto their plate.
Results:
- Used humor to keep viewers engaged.
- Reinforced the idea that GEICO is an easy choice.
- Created a lasting impression in just a few seconds.
What you can learn: Relatable humor and everyday scenarios can make ads more effective.
Now, that you are convinced to adopt Digital TV advertising, here is how you can plan your marketing strategy.
How to Get Started with CTV Advertising?
Let’s walk through the process of how you can execute a Smart TV promotional ads strategy.
1. Define Your Goals
Let’s start by thinking about what you hope to accomplish with this ad campaign:
- Do you want to boost brand recognition?
- Are you looking to increase website traffic or sales?
- Or your goal is to get more people to download your app or visit your store?
You have to be more specific here.
Okay, I have an example. Instead of saying, “I want more customers,” you should think of, “I aim to boost website traffic by 20% over the next 3 months.”
This gives you a clear path to plan your campaign. Plus, It also lets you keep an eye on metrics such as:
- Impressions
- Completion Rate
- Conversion Rate
- Return on Ad Spend (ROAS)
2. Know Your Target Audience
This approach helps you zero in on viewers who are more likely to connect with your brand with facts and figures on:
- Demographics – Age, gender, income, and location
- Interests – What they like to watch and shop for
- Viewing Habits – What streaming services do they use and how much they watch
To nail this, you can turn to first-party data (like email lists or website visitors) to get a handle on your audience.
3. Create Engaging Ad Content
Now it’s time to develop content that resonates with them. CTV commercials need to make an impression. You’ve got seconds only before someone decides if they’re interested or not.
Here’s how to make your commercial seen:
- Keep it brief so viewers can get your message right away.
- Make it visually engaging to keep people watching.
- Add a clear call to action (CTA) to tell the audience what to do next; should they visit your website? Download an app? Or buy now? You have to make it obvious to them.
- Add interactive features that enable users to engage with your content.
Remember, you are vying for attention; if your commercial is dull, people will zip past it. But if it’s engaging, they’ll remember your brand.
4. Choose the Right Platform
CTV advertising runs on many platforms, and the right one to use is contingent upon your audience and intentions.
Here are your options:
- Smart TVs
- Content Streaming Devices like Apple TV, Roku, and Amazon Fire TV
- Streaming Services like Hulu and Peacock
- Demand-side platforms (DSPs) to buy ad space across multiple CTV sources
- OTT Aggregators
Be sure to choose the platform where your audience is most active.
5. Monitor & Optimize
Yes, your campaign is live, but still, your work isn’t over. The real power of digital TV advertising is in the data and you can track performance in real-time.
Keep an eye on:
- How many people see your ad
- How many watch it completely
- How many take action after seeing it
And if something isn’t working, you can adjust it to make it better.
Conclusion
Now you exactly know what does CTV mean in advertising and how it works better.
However, just knowing about CTV is not enough, you need to take action. The longer you wait, the more customers you lose to competitors who are already using CTV advertising to grow their business.
And if you still rely on old-fashioned TV commercials, you ultimately miss out on a smarter, more cost-effective way to advertise.
