Pros and cons of CTV advertising
Today, it isn’t easy to imagine our lives without advertising. It plays a unique role in world trade. Commercial advertising is created to attract the customers’ attention to a particular product or service, increase sales, and make the audience more loyal to the brand. It is a specific type of influence to form the necessary opinion in the population. We decide to buy under the influence of advertising.
The average resident of Europe and America spends approximately 5 hours watching television, two of which are Connected TV. And the trend of transition from traditional to digital TV is only growing every year.
Features of Connected TV Advertising
CTV advertising is a great way to connect with viewers, especially the younger audience. Such advertising is cheaper than on linear television.
The most important factor that can affect how CTV ads are shown is price. Such advertising is played on a large screen and affects users who are already engaged in browsing. For example, a family sitting on the couch before watching a new movie, rather than a single user on their device. However, to maintain the brand, it is important to show similar ads to the same viewers on other devices.
The cost of television advertising is affected by the type of content, the duration of the video, the time of the show, and the location of the viewers. According to statistics, CTV advertising is quite effective because it reaches a specific audience. Up to 70% of brand awareness is associated with this type of advertising.
Companies with limited budgets must choose the perfect timing and price when preparing TV commercials. When the frequency of the advertisement, the number of people who watch it constantly, and the level of interaction it causes are considered, the advertising campaign is successful. It makes it possible to pay off even a seemingly expensive promotion.
Let’s look at all the pros and cons of television promotion of anything below.
Advantages of CTV advertising
Some pros include the following:
- brightness, spectacularly, possibility of attracting media personalities;
- effectiveness: positive associations in the viewer’s mind;
- the ability to reach audiences of any size and any category;
- high speed of information transmission;
- comprehensive impact on the audience (video and sound);
- easy search for the target audience, depending on the time and subject of the show;
- numerous topics for creating a sales clip;
- control content the duration of advertising;
- large coverage: in the US alone, more than 80% of users have at least one CTV device.
CTV offers much more accurate and cost-effective targeting than linear TV ads that everyone watches. At the same time, CTV ads are served based on precise targeting by IP, multiple devices, or native devices. It is customized based on relevant user behavior on the Internet, general demographics, geographic location of viewers, time of day, and other parameters. This data will unambiguously define the target audience for the video clips and should lead to a much higher return on ad spend.
Today’s consumers are increasingly moving away from linear or cable television and opting for the freedom to watch at their convenience from anywhere. Oftentimes, entertainment streaming apps and services can be cheaper than traditional cable.
Because most ctv commercials cannot be skipped to continue watching a movie or show, viewers are more likely to watch the full ad. The ads are 15 to 30 seconds too short to get up and leave, so viewers tend to stay in their seats in front of the screen for the duration of the ad.
There are many pros, but there are also cons that also need to be mentioned.
Disadvantages of CTV advertising
The disadvantages of advertising on television include:
- high costs for the production of quality video content and its promotion. We are talking about thousands and tens of thousands of euros;
- many ads are not clickable;
- negative attitude of the audience due to the overload of airtime with advertising, which creates an intrusive effect;
- fewer opportunities to reach older audiences: about 25% of viewers over 55 watch their favorite videos through CTV.
CTV ads can be very effective when clicking on links is not a priority, such as during user awareness campaigns. This type of influence on people will be more effective in combination with other types of advertising.
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