Imagine it’s 1980 instead of 2020. Not only would you be wearing suspenders with a tee-shirt and something called moon boots, but your television would be radically different too. If you were sitting in your living room and wanted to watch the movie trailer for Caddyshack, you’d have to hope it came on sometime when you were watching Mork & Mindy.
Now flashforward and describe your TV watching habits today. Do you watch television on a schedule? Probably not. You can watch your favorite show when you want or binge an entire season in one Friday evening while dishing Ben & Jerry’s Half Baked ice cream down your throat. In 1980 you could choose from four channels: the three major networks and (maybe) PBS. You were at the whim of a white-haired programming director. Today, you can watch one of the thousands of channels, use an app on your smart TV, or stream video programming to any device. Television in 1980 wasn’t smart, it wasn’t even educated. It was Dropout TV.
With the advent of Connected TV, consumers have new ways to watch programming, and advertisers have a wide range of opportunities to reach that audience with their messages. It’s never been easier to reach people via “television,” and it’s never been more affordable to acquire customers with your advertisements on streaming video services.
Connected TV Advertising: The Future of Video Marketing
Suppose you’re a tax professional and you wish to reach potential business clients in your area. Now suppose a local business owner searched for TurboTax or tax advice online recently. Then that same person fires up their Smart TV and watches a documentary on YouTube. That’s where they see your ad for tax services in your town. Voila! You’re reaching a possible customer, and one ready to make a decision. That’s the power of connected TV advertising.
Compared to traditional television ads, connected TV and streaming video advertising is more immediate, responsive, and more likely to be seen. It’s not a “spray and pray” philosophy where you hope your ad hits a customer. Nope, connected TV ads are more like “aim and claim” marketing, honing in on solid leads.
What is OTT Marketing?
OTT Marketing is “Over-The-Top Marketing,” or marketing that’s streamed to viewers over devices like Apple TV, Amazon Fire TV, and Android TV. It includes advertising that’s delivered via a Roku, Amazon Fire TV Stick, video game consoles, DVR set-top boxes, Internet-ready BlueRay players, and Smart TV apps like Netflix, Hulu, Disney Plus, and others.
Chances are, you watch TV (at least part of the time) via one of those devices. If you’re under the age of 40, it’s highly likely that you watch more streaming content than broadcast or cable TV. The audience for OTT Marketing is exploding. Video ad views on OTT devices grew 44 percent year over year in 2019, according to Codestream.
Benefits of Connected TV Advertising
- According to Market Watch Reports, in 2019 the number of “cord cutters” grew by 19 percent. Those are people who have canceled their subscription cable TV plans and eliminated broadcast TV. These people are the largest growing segment of the video audience, and they cannot see traditional television marketing. Advertising over OTT and streaming like YouTube is the only way to reach them with your brand message.
- Folks who watch streaming video via a smart TV or other device are a captive audience. They can’t scroll away from your ad, close a browser window, or block ads. In order to see the free content, they must see your ad. As a result, video completion rates are much higher on connected TVs.
- When compared to digital advertising, connected TV ads are being seen by a wider audience. Digital advertising and streaming over a computer is largely watched by tech-savvy, younger audiences. But streaming TV and connected Tv experiences are shared by all members of the family. While the kids are watching YouTube videos in their bedroom, parents are watching a movie on Roku TV in the living room.
- With “audience matching,” ads can be delivered only to audience members who have been pre-qualified based on purchase history or other criteria.
- Ads formatted for streaming video and delivery over OTT can be repurposed easily (and often seamlessly) because ad-insertion tags are cross-platform compatible.
Making Sense of Connected TV Marketing
We’re not going to lie: marketing to an audience over connected TV devices and through various devices and onto multiple platforms is not simple. It requires a well-planned marketing strategy and coordinated execution. What does that mean? You need a proven digital marketing agency to launch and monitor your ad campaign. We’ve been doing this since connected TVs were merely a hobby, and we’ve learned the do’s and don’t over the years. Will you let us apply our knowledge to your needs? Contact Koeppel Direct today for a free consultation.