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CTV Digital Advertising Basics

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CTV Digital Advertising Basics

With more and more people cutting the cord, CTV digital advertising has become a popular method of reaching people online. CTV ad spend rose nearly 60% from 2020 to 2021, reaching $14.44 billion.

This newer player in the advertising game will continue growing as more people rely on the Internet to consume content.

So, what exactly is connected TV advertising? I’ll explain!

CTV advertising definition

Connected TV, or CTV, refers to televisions that use the Internet to stream video. Think Smart TVs that let you download apps to your favourite streaming services.

This definition also includes devices that allow television to stream online, like video game consoles or Firesticks.

CTV advertising, in turn, is a form of digital advertising that reaches people while they’re using a CTV device.

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CTV does not provide video via traditional broadcast, satellite, or cable channels, so ads viewed in this manner would not be considered connected TV ads.

An acronym you might hear used with CTV is OTT. While these terms are connected, they’re not quite the same thing.

CTV vs OTT

OTT stands for over-the-top and refers to the content presented to viewers using the Internet. Netflix, Hulu, Prime Video, HBO Max, and other popular streaming platforms would be consider OTT streaming services because they provide video to subscribers through the Internet, not through traditional methods of viewing television.

OTT video can be view on different devices via the Internet. These devices include laptops, smartphones, and connected TVs.

To quote the IAB Tech Lab, “Use CTV to refer to a specific type of device,” and “Use OTT to refer to content.”

How CTV digital advertising works

While connected TV advertising is fairly new, the basic advertising principles still apply to it. Before you invest in connected TV ads, you should know who you want to reach and what you want those people to do after they’ve view your ads.

This information not only shapes the content of your ads but also helps you choose the best audience targeting strategy when preparing to launch your campaigns.

When choosing how to target your audience, you can get a lot more granular than you would with traditional TV ads. You can also access campaign insights that help shape your future marketing decisions.

Programmatic advertising tools are essential to your CTV ads. These tools use automation to manage your digital ad campaigns. So, instead of going to each place you want to advertise, bidding for ad space manually, updating your budget and targeting, etc., the programmatic software does a lot of that for you. You can learn more about the different tools available to you on our website.

If you don’t have a ton of experience with programmatic advertising, you may want to get in touch with an agency that can help you.

And those are the basics of CTV digital advertising. If you want to keep learning about different forms of online advertising, contact us online or call us today at +(92) 301 0599631 to speak with a strategist!  

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