Do you know that 55% of people who watch videos online do so every day? There is also a whopping 72% of customers who prefer video when it comes to learning about a service or a product. These are just two statistics that prove how huge video has become a part of our daily life and as a marketing channel for businesses. It is no mere trend, but a lifestyle that the global population has come to embrace.
One way of harnessing video as a marketing tool is through connected TV or CTV advertising. This refers to video ads shown on devices used for streaming content. Some examples of this would be Roku, Apple TV, and Amazon Fire, as well as gaming consoles such as Xbox and PlayStation. Now, why is this a trend you should jump on? Here are three good reasons:
Targeting the Right Audience
It’s one thing to reach your audience; it’s another to engage them. With CTV ads, you can do both at the time when it matters the most. Instead of casting a wide net like with cable TV, you can target the demographic you want with CTV ads. There are a lot more data available when running CTV ads, such as past purchase behavior and other online data. This makes it much simpler to tailor your content toward the persons who are most likely to pay for your product or services.
Increasing Ad Recall and Overall Effectiveness
Do you know that there is much greater ad recall with CTV ads than linear TV commercials? With the linear type, viewers can switch to a different channel if the ad they are seeing isn’t to their liking. With CTV, however, some ads cannot be skipped. Ads show less often, too, with only one to three ads per viewing session. Figures show that viewers have a 95% completion rate with CTV commercials — and that’s a highly valuable metric for businesses.
Ad recall is also much higher with CTV than traditional TV ads, with CTV sporting a 34% improvement in ad recall compared to traditional TV’s measly 6%. Brand favorability is easier to boost with this channel.
Maximizing Cost Investment
But perhaps the most attractive reason to invest in CTV ads would be its low cost. Emarketer estimates that CTV ad spending in the USA alone will reach $6.94 billion and is poised to hit $10.81 billion by 2021. The figure translates to 25% of all digital ad spending in the United States. The best thing about this? The cost to run a CTV ad is much less than a typical linear TV ad spot. Considering its effectiveness in terms of viewability and engagement, ROI is higher, faster, and cheaper to acquire with CTV.
We live in an age where videos are at the center of our lives. With CTV, even more so. It is high time for businesses to do everything in their power to edge out the competition, and that means investing in CTV ads now.