Television viewing behavior has changed radically: Instead of rigid broadcasting times, flexible streaming services now dominate. Viewers want to access content at any time and decide whether they want to pay for ad-free access or use free, ad-financed services. This development offers advertisers new opportunities to reach their target groups in a targeted manner, but also brings with it challenges such as fragmentation and measurability. Connected TV (CTV) plays a central role in this - and is changing the media landscape in the long term.
CTV - Definition
Connected TV (CTV) refers to internet-enabled televisions and streaming devices that allow users to access digital content via apps or platforms such as Netflix, Amazon Prime Video or Disney+. These can be smart TVs with an integrated internet connection or conventional televisions that are connected via external devices such as streaming sticks, games consoles or set-top boxes.
Difference between CTV and OTT
While CTV describes the device used for streaming, over-the-top (OTT) refers to the provision of content via the internet.
- OTT refers to video content that is offered via streaming services, regardless of the device used. This includes smartphones, tablets, laptops and smart TVs.
- CTV, on the other hand, refers specifically to televisions that are connected to the internet. Advertising content on CTV is played on the big screen and therefore offers a higher attention span.
Types of streaming services
There are different types of streaming services depending on the financing model:
- SVOD (Subscription Video on Demand): Subscription-based services that offer unlimited access to content (e.g. Netflix, Disney+).
- AVOD (Advertising Video on Demand): Free or low-cost services funded by advertising (e.g. Pluto TV, Tubi).
- TVOD (Transactional Video on Demand): Pay-per-view models where individual content is purchased or rented (e.g. Apple iTunes, Amazon Prime Video Store).
- FAST (Free Ad-Supported Streaming TV): Free ad-supported platforms that replicate a linear TV experience (e.g. Samsung TV Plus, Roku Channel).
CTV: opportunities and advantages
CTV offers advertisers an effective way to reach their target group. Compared to traditional TV advertising, CTV advertising offers data-driven targeting, greater measurability and a wider reach across different household devices. Benefits include:
- High completion rates: Ads on CTV cannot be skipped, resulting in nearly 100% viewability.
- Targeting: Ads can be targeted based on user demographics, interests and behavior.
- Interactivity: Clickable overlays or interactive ads allow users to interact directly with the advertisement.
- Combination of TV quality and digital marketing strategies: CTV combines the advantages of classic TV advertising with the precision of digital ads.
The challenges of CTV advertising
Despite the numerous advantages, there are some challenges:
- Fragmentation of platforms: As there are many different streaming services, advertisers need to coordinate their campaigns across multiple platforms.
- Measurability and standardization: Different providers have different metrics for measuring success, which makes comparability difficult.
- Ad blocking: Some users resort to ad blockers or premium subscriptions without ads, which can limit reach.
Future of CTV
CTV is growing rapidly and is increasingly becoming the preferred medium for digital content. With the growing acceptance of ad-financed models and the increasing personalization of advertising, CTV is becoming an important platform for brands and companies. Advertisers should follow developments closely in order to develop the best possible strategies for their campaigns.
