CTV and Advertising

Technology has become increasingly important in this historical period. Traditional TV, as we have known it until now, has been transformed into something different with the advent of new technology, changing into Connected TV.

But what do we mean by Connected TV?

Connected TV is any device connected to the Internet that is able to broadcast linear and streaming audiovisual content.

Boxes, consoles, TV sticks and Chromecast devices, which connect to a traditional TV through an HDMI input and turn it into a Smart TV, can also be included in this category. Thanks to this continuous technological evolution, the range of entertainment that can be guaranteed to users are increasingly wide, both through Android or proprietary stores on the device that allows users to access a catalog of contents and interactive applications that make the user have a complete experience and through the HbbTV technology that allows accessing an IP content by a trigger installed on the broadcast channel.

In the last two years, during the various look-downs imposed by governments around the world, there has been an exponential growth in the number of users who have subscribed to service applications to enjoy streaming content. Just think of Netflix, which has reached 203 million subscribers and in this scenario, advertisers are looking for new ways to connect with consumers.

 

Coverage and addressability are the ‘must-have’ for marketers/advertisers and in this scenario, ConnectedTV is a real goldmine, between targeted audiences and programmatic channels.

But how to make the most out of this potential?

First, we need to understand how people use streaming content, i.e., whether they are loyal to these services or use them sporadically. So you need to find out what the actual numbers are and what the room for improvement is.

In this regard, a study was carried out by Magnite-Research, in which about 2,000 users per country in various European countries were interviewed. It came to a total of about 10,000 users on these platforms, and it has emerged that these platforms are in continuous expansion, especially because to view such content the user is not required to subscribe to one of the classic cable or satellite television services and above all because access to such content can take place at any time if it is on demand, or via live streaming for viewing in real-time.

The numbers show that CTV coverage really competes with traditional TV use, in fact about 83% use streaming services, even several times a week, and openly state that watching traditional TV is a choice made more out of habit than for quality/variety of content.

In Italian households, the choice is clearly in favor of CTV, and if we consider the population divided by age groups, the numbers are bound to increase, taking into account that for the “Millennial”, “Generation Z” and “Alpha Generation” the choice is leaning more towards streaming channels than towards linear TV.

Compared to traditional TV, CTV has tremendous power to hold the viewer’s attention, as there are no commercial breaks and the user is less likely to be distracted.

On the contrary, linear TV with its multiple ad breaks leads the user to be distracted while watching content, which can lead to the simultaneous use of other devices.

However, it turns out that 47% of the user base is willing to see advertising in exchange for a lower monthly fee.

Thanks to ADVs, more profitable subscriptions can be made for the end-user with minimal impact on streaming, which is why the apps available on CTV are increasingly popular.

Unlike linear TV, on CTV we have the opportunity to display ADV during the streaming of the events we are watching, without necessarily interrupting the transmission of the content.

This is possible by broadcasting banner advertisements in different formats or short video advertisements that usually last no longer than 30 seconds. 

Another advantage of advertising on CTV is the possibility of targeting according to user interests.

It is also advantageous for the end-user to receive information about advertising articles he might be interested in or exclusive offers in the area where he is located. It is estimated that in five years’ time, TV advertising will only be targeted.

  • Senior Tester di Kineton. Dopo aver mosso i primi passi nella progettazione CAD, si è dedicata al mondo della validazione riuscendo in poco tempo a specializzarsi nella certificazione delle applicazioni in ambito Media Entertainment.

  • Senior Test Specialist in Kineton Laureato all'Università degli studi di Napoli Federico II, si è dedicato sin da subito alla certificazione e validazione degli applicativi e device del mondo Media, diventando tra i maggiori esperti del mondo DVB-T/S su territorio nazionale.

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