Why CTV advertising should be on media plans

Connected TV (CTV) advertising, which combines the sight, sound and motion of TV advertising with the targeting of digital, has to be seriously considered as part of brands’ media plans, according to the just-released WARC Guide to Connected TV.

Why it matters

Most TV viewers are now spending substantial amounts of time watching TV on a variety of streaming platforms. This means that marketers are increasingly unlikely to reach targets using just linear TV – brands that use CTV as well can take advantage of enhanced targeting and minimize waste.

Takeaways

• In the US, CTV spending is set to reach $21bn by the end of 2022, according to research from the IAB; that figure is just short of the amount of 2022 spending expected in other forms of online video (excluding social). 
• As viewership shifts toward CTV, some brands are pursuing a “video-on-demand first” strategy. 
• Ad inventory in CTV comes from a variety of sources, including streaming services and Smart TV companies.
• CTV advertising runs primarily on first-party data – streaming platforms inherently require a log-in, as does opting in to a Smart TV or device, as does having a cable or satellite subscription. Because of first-party data, CTV also sidesteps many privacy concerns.
• CTV’s internet connectivity makes it possible for advertising to be transactional; brands can take advantage of tactics such as using a QR code to exploit second-screening behavior. 

The big idea

Brands, agencies and media owners will need to become fluent in CTV as viewing habits shift and enhanced targeting in TV becomes easier to achieve. 

Read more in The WARC Guide to Connected TV