What is CTV (Connected TV)? Everything You Need To Know

Connected TV

If you’re like most people, you probably think of your TV as, well, a television. You turn it on, flick through the channels, and watch whatever catches your eye. But in recent years, TVs have become so much more than just a vessel for traditional broadcast content.

With the emergence of Connected TV (CTV), your TV is now connected to the internet, which means it can do things like stream shows and movies, browse the web, and even play games. In other words, they’re pretty much mini computers. If you’re still scratching your head and wondering what CTV is all about, we’ve got the scoop on everything you need to know.

What is CTV (Connected TV)?

CTV is an umbrella term used to describe any television that can connect to the internet and access content beyond traditional broadcast sources like cable or satellite. This includes TVs that connect to the internet via an Ethernet cable or WiFi, as well as TVs with integrated streaming services like Apple TV, Roku, and Chromecast.

Over the past few years, the popularity of CTV has exploded as more people cut the cord and opt for streaming services instead of traditional cable subscriptions. In fact, research estimates that 87% of US adults own at least one connected TV device, with almost half using other devices daily.

How does CTV work?

CTV devices are designed to be easy to use and user-friendly. All you need is an internet connection and a compatible device, like a streaming box, smart TV, or gaming console. Once your device is connected to the internet and set up, you’ll be able to access a variety of content, from streaming services like Netflix and Hulu to web browsers, games, and more. 

Many CTV devices come with voice search capabilities, so you can quickly and easily search for whatever show or movie you want to watch. You can also set up parental controls to ensure your kids don’t access inappropriate content. Think of CTV as your own personal entertainment center; it’s up to you what kind of content you want to engage with.

The switch to AVOD

By now, most people are aware of the subscription-based models offered by streaming giants such as Netflix, Disney+, and Amazon Prime. However, an increasing number of these streaming services are beginning to offer an ad-supported model known as AVOD (Ad-Supported Video On Demand).

For those of you unfamiliar with the term, AVOD offers viewers free access to content in exchange for having to watch ads. This provides businesses with a way to monetize their content without requiring viewers to pay for a subscription, thus allowing them to reach a larger audience and generate more revenue.

At the same time, this model also gives advertisers an affordable way to tap into the CTV audience. With AVOD, they can target ads to viewers based on their interests and preferences, as well as track viewership and measure the performance of their campaigns. This results in more effective campaigns, which can be further optimized as brands gather more data about their viewers.

The benefits of CTV for advertisers

Every time you watch a show, commercials are used to generate revenue. However, there are a few fundamental problems with this model.

First, it’s difficult to measure the effectiveness of traditional TV ads because there’s no way of tracking who is actually watching them or how many people are being reached. With CTV, on the other hand, advertisers can track viewership and target their ads to specific viewers based on their interests and preferences, which makes for a more efficient and cost-effective ad campaign.

Furthermore, CTV also provides businesses with the opportunity to engage viewers in new and creative ways. Instead of just showing a 30-second commercial, they can create interactive experiences that keep viewers engaged for longer.

The benefits of CTV for content creators

As previously mentioned, CTV platforms are not restricted to offering just Netflix and Hulu. Take Roku for example. They offer their own channels, free of charge, and the content is not restricted to TV series and movies. This platform offers hundreds of content channels, ranging from games to e-books. 

Israeli startup VFR was quick to jump on the Roku bandwagon, and currently offers nearly 100 different content channels, from their bingo channel BingoTV to their children’s e-book channel, Little Stories.

The possibilities for content creators are simply endless, and now is the time to make the switch from creating content for aging platforms such as YouTube, to creating content for growing CTV platforms.

Where does CTV go from here?

It’s clear that CTV is quickly becoming the preferred way to watch content, with more and more people opting for streaming services instead of traditional cable. As such, it’s likely that CTV will continue to grow in popularity and become an even more important part of the digital media landscape.

With Disney+ and Netflix now offering AVOD tiers,the potential viewership for ads is growing. The biggest challenge for CTV ads right now is ensuring that the user experience remains seamless and enjoyable. Advertisers need to be mindful of their creative approach, as people are more likely to ignore ads that are intrusive or irrelevant.

At the same time, businesses also need to understand how viewers interact with their content so that they can create more engaging experiences and optimize their campaigns for maximum impact. With this in mind, it will be interesting to see how CTV continues to evolve over the next few years and what new opportunities it will bring for marketers, businesses, and viewers alike.

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