What Is Connected TV?

When users consume media through devices with internet connections and modern interfaces such as smart televisions (TVs), gaming consoles, or streaming devices, they are operating connected TVs (CTVs). Today, users are more likely to engage with something other than traditional cable or satellite when consuming media. CTV is convenient and streamlines media consumption.

What is connected TV advertising?

Connected TV allows companies to get ads in front of viewers who have ditched traditional cable or satellite to watch TV, and instead use the internet to access the content. Currently, CTV advertising is bought and sold programmatically. With CTV advertising, this approach enables consumers to interact with the ad, which can take them to the company website or another app. 

Over-the-top advertising vs. connected TV advertising

Over-the-top (OTT) advertising is similar to CTV advertising, with the main difference of streaming across mobile devices and desktops, not simply TV. Over-the-top means the content comes through the internet, “over” the cable box, to gain access to televised content. This is why OTT can also be streamed across mobile and desktop.

CTV metrics and measurements

Advertisers can optimize the ad price and placement for CTV. Some metrics used to determine this price and placement are video completion rate (VCR), brand reach, and return on ad spend (ROAS). 

Video completion rate

VCR records the completed view of an ad from start to finish. Because ads played on CTV are not allowed to be skipped, VCR is normally high.

Brand reach

Brand reach is another determining metric used with CTV. Reach means how many users will see the CTV ad. Typically, this is reported as a percentage of a demographic.

Return on ad spend

ROAS is a performance metric that reports the revenue generated compared to the amount spent on a particular ad campaign. 

Advantages of connected TV advertising

CTV advertising reaches viewers who do not use traditional cable and satellite to consume media. CTV has measurable results, utilizing both digital and traditional metrics. With more users switching to CTV, marketers can focus on this expanding audience.

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