Connected TV Misconceptions: Part 2
We Explore More Myths in Part Two of our Connected TV Misconceptions Series
There seems to be some confusion out there around Connected TV advertising. But don’t worry, we’re here to clear things up for you. If you didn’t get a chance to read the first entry in our Connected TV Misconceptions series, give it a look and then read on.
As a refresher, Connected TV (aka CTV, IPTV, or “OTT” Over the Top), allows viewers to stream from premium content creators including all major TV networks, as well as many cable and digital content creators like Bravo, Twitch, or Crackle. The ad supported programming is viewed through apps for smart TVs, desktop, mobile, or over-the-top (OTT) devices, including Roku, Apple TV, Amazon Fire, Chromecast, as well as many gaming consoles. This allows cord cutters and streamers to replace or supplement their traditional cable bundle.
Now with the basics out of the way — let’s clear up some more misconceptions.
Misconception: TV and Digital Don’t Mix
The idea that TV and digital advertising are two separate entities is an outdated way of thinking. Traditionally, TV has been a way for advertisers to cast a broad net (hence the word “broadcast”), while digital, with its advanced targeting options, could be employed to target specific audiences. Connected TV changes that, and allows for digital precision in the TV world.
CTV lets advertisers leverage a number of data sets to pinpoint their audience. These include:
> First Party Data | Home page visits, users who’ve clicked ads, form completions, etc.
> Third Party Data | Age, gender, income, number of children, intent, etc.
> Look-Alike Modeling | Finding users who are similar to those who purchased, signed up, etc.
What’s more, partnering with a platform like SteelHouse allows you to combine your TV and digital efforts. Thanks to cross-device tracking capabilities, you can target audiences on CTV and then continue to serve them ads with retargeting campaigns on desktop and mobile. CTV has given brands the ability to bridge the gap between TV and digital — creating a more complete advertising ecosystem.
Misconception: It’s Too Expensive
Advertising on traditional TV is expensive because it can’t distinguish between an engaged user, and someone who isn’t interested in your ad. It uses gross ratings points (GRP) to measure audiences; a GRP is the percentage of a target market (say, a metro area), multiplied by the number of times the ad is run. Because advertisers must run ads for everyone in that percentage, including those who will never engage with your brand, the price can be steep.
The cost of running a commercial on network or cable TV has kept many brands away from the medium altogether. Connected TV, however, solves for that thanks to its ability to target specific audiences. Advertisers on CTV have visibility into audiences at the impression level, and are valued on a CPM basis where all impressions are captured. Traditional TV lacks the ability to measure down to that level, which means they must result to measuring audiences on a rating point basis, making cost-per-point (CPP) the standard measure of value of that audience.
Specific targeting on CTV using 1st and 3rd party data lets you advertise on TV without paying the premiums of traditional TV. That means you’re not paying for extra viewers just because they live next door to your actual audience. Instead, you’re targeting those who will respond to your ads, and avoid paying for what is essentially dead weight.
Misconception: The Ads Are Easily Skippable
This one is easy to dispel — CTV ads cannot be skipped. The confusion comes from digital video (pre-roll on Youtube, for example) that can be skipped, often after 5 seconds, or On-Demand DVR services that allow you to fast forward through commercials. Viewers cannot fast forward or skip CTV ads. In fact, internal SteelHouse data from our CTV campaigns have shown completion rates of over 95%.
And the crazy thing about CTV ads is people actually want to watch them. According to the IAB 40% of US Adults considered commercials on CTV platforms to be less intrusive than standard TV ads.
Don’t Miss Out on Connected TV
By now we’ve hopefully dispelled the misconceptions around Connected TV that could possibly be holding you back. You really can’t ignore the opportunity that’s being presented — this is an ideal channel to connect with your customers, and deserves a place in any brand’s marketing mix.
To see how your brand can benefit from running ads on CTV, request a demo here.