NGBN.TV is already offering a glimpse of Connected TV (CTV). 10Th Degree recently reported on the future of CTV advertising and offering these reasons why.
Why CTV is the Future of Video Advertising
#1: CTV is Everywhere
We said it before and we will say it again: CTV is everywhere. As internet giants like Netflix, Amazon, and Hulu produce their own highly-popular shows, more and more people have joined as the convenience and fear of missing out overcome any residual luddite tendencies. As of last year in the United States, 60% of households own a CTV. In the UK, which has just 6% more CTV use than the United States currently, 75% of households were expected to connect their TV’s to the internet by 2020. The time is ripe for a video advertising boom as households adopt CTV technology with records speeds.
#2: Millennials Love CTV
CTV is the future of video advertising because millennials love CTV. The coveted video advertising audience that is getting harder and harder to target are clustering in one place. Millennials love the content made available by Netflix, Amazon, and Hulu. Even Youtube allows the purchasing of episodes. The point is, most millennials just don’t feel like they need convention television packages. In fact, millennials are a full 67% more likely to be in a CTV-only house, and 25% report that they don’t have pay-TV. With the millennial audience so concentrated, savvy advertisers should focus their video advertising on CTV.
#3: People Don’t Mind CTV Ads
As we mentioned before, CTV is very close to the normal television viewing experience. However, there is a much higher ability to target the audiences you’re looking for based on the data these apps provide. This provides a much higher return on investment than traditional television advertising, which is more like the shotgun approach to advertising. This, coupled with the fact that most applications for viewing content through CTV are less expensive than traditional TV, contributes to the fact that users don’t mind experiencing video advertising on CTV. Devices like TiVo that waste millions of advertising dollars by allowing users to skip will not be a problem with CTV because viewers understand it is part of the cost of doing such cheap and convenient business. In a recent study, ‘half of the respondents said they felt that watching ads is a fair value exchange for low-cost content. Moreover, ads on connected TV were “less annoying” than those on linear TV, according to the respondents.’
#4: Enormous Video Advertising Opportunity with CTV
There is very little CTV inventory available now, and most of it is snapped up quickly, but advertisers shouldn’t be worried. The massive growth of CTV is creating an enormous opportunity for video advertising with CTV. 160 million Americans streamed using CTV every month, CTV use grew 300% but CTV only accounts for barely 1% of TV ad dollars. As technology improves and even more people adopt CTV into their homes and daily lives, more TV ad dollars will shift in the direction of CTV.