Connected TV: Growing Momentum and Evolving Ad Formats
In advertising, the main goal of every business/brand owner is to multiply sales and come up with improved digital strategy to acquire new customers.
The rule of thumb is that if you wish to improve your business agility, you take your ad campaign to digital advertising platforms, and if your goal is wider reach or brand awareness, television is your best bet. Even now, with the rapid growth of connected TV (which represents the digitization of television), advertisers still think along the same lines.
For decades now, advertisers have been creating content for the TV screen and television viewers to reach customer expectations, but the era of the CTV has opened many new opportunities for advertisement. While viewers could easily watch their favorite shows or videos on their mobile devices with fast mobile network connection speed, the major reason why people choose to experience content on their TV is that they wish to watch high definition video streaming together with others.
In 2021, business analytics found that nearly 83% of households had at least one streaming TV, which was used by at least one member of the household. In 2020, at least 20 million Americans streamed a wide variety of shows on their connected TV, and a study performed by MNTN and Digiday revealed that 60 percent of businesses in 2021 consider CTV advertising a key driver in their brand’s success.
How are Ad Formats Evolving?
Much like everything else has evolved to meet up with the fast-paced world, the CTV business sector has evolved to find a way to fully maximize the rapid growth of user engagement. Research has shown that now, users with internet access are more likely to use CTV devices while also interacting with their mobile phones or a mix of devices. This translates into consistent users who might not be 100% engaged but are still present.
Advertisers can take advantage of the growing rate of CTV users to raise brand awareness with strategic YouTube CTV ads on ad-supported platforms that would trigger a direct response.
For example, companies and online shopping brands have integrated the idea of QR codes in their ads. The advertising strategy is that viewers can easily scan those codes with their mobile devices, and it would lead them straight to the company’s page or the product they wish to purchase.
Hulu is a perfect example of a brand that constantly integrates improved ad formats in its advertising strategies to meet viewers’ needs. The company famously integrated “pause ads” into its platform; which meant that static ads appeared on the viewer’s screen every time they paused their shows. Whether or not this strategy was successful is still up for debate, but no one can deny it was as innovative as can be.
There are many new and exciting creative ad formats to experiment with, and keeping up with the ever-changing trends can be a huge challenge, but that’s where your company’s advertising prowess shall come out to play.
Formats Advertisers are Working With
Marketers can serve ads to viewers by taking advantage of any of these six creative ad formats:
- Dynamic overlay
Advertising in this ad format means that the ad content appears on the top of the screen, giving it an overlay appearance. Overlays on viewers’ screens will increase the chances of your viewers interacting with the ad.
- Shoppable ads
An example of these types of ads is the scannable QR codes we mentioned earlier. These interactive ad formats are designed to take customers directly to the product and services from the third-party providers.
Users are given the option of selecting the ad they want to see. This method places a gallery of video ads for viewers to choose from. This advertising method is efficient because it boosts viewer engagement, and allows them select only relevant content.
These short ads last for fewer than 30 seconds with the option for connected TV audiences to extend interaction. The flexible ads come with countdown timers; at the end of the specified time, there is a call-to-action.
- Voice-integrated video ads
These interactive ad videos are integrated with voice prompts on ad-supported platforms where users can control the screen using voice commands. Viewers can speak into the remote and follow on-screen prompts to interact with the ad.
- TV 2 Mobile
This type provides viewers with relevant content that they can use to interact further with the brand. This interaction is usually done by mobile phone via SMS. After viewers input a phone number via the remote control, they receive an SMS containing a URL that they must follow to reach the app download page.
Although these methods are neither 100% foolproof nor do they offer viewers a completely seamless experience, they are just the beginning of what video ads on CTV platforms can accomplish in the world of advertising.
It is not a reach to say that the future of the digital advertising industry advertising lies majorly in Connected TV audiences. Brands wishing to reach their target audience and newer audiences can fully utilize CTV advertising in their ad campaigns.