Connected TVs have changed how viewers consume content, while also creating a completely new landscape for brands to reach their target audience. CTV advertising allows for precise audience targeting based on demographics, interests, and viewing habits, enabling advertisers to reach specific audience segments accurately.

The way people consume video content has changed significantly over the past few years. People are no longer dependent on strict program schedules of linear television as they can now choose from an abundance of shows and movies on demand. Today, it has become imperative for advertisers to understand the CTV ecosystem, so they can successfully unlock a new performance channel for their marketing campaigns.

What Are CTVs?

CTV, or Connected TV, refers to any television set or console that is connected to the internet, and can include set-top boxes, smart TVs, gaming consoles, and TV sticks. CTVs are mostly used to stream video content via downloaded apps using the over-the-top (OTT) content delivery method.

What Is a CTV Ad?

A dynamic CTV ad refers to video ads that are delivered to viewers streaming video content on CTVs. CTV ads are video commercials delivered through streaming platforms. They offer a more targeted and interactive approach to engaging audiences as compared to traditional TV advertising.

Types of CTV Ads 

CTV Ads can be interactive, skippable, or non-skippable. The most popular types of CTV ads being used today are:

Instream/Linear Video Ads

These ads may resemble traditional TV ads and are aired when users are watching movies or shows. Instream ads have three formats:

Pre-Roll Ads: Played before the main video content. Viewers can sometimes skip these ads after several seconds, while at other times they must watch the full ad before being able to access the main video content.Mid-Roll Ads: These ads play in between the video content, generally by interrupting the movie or show when you are streaming long content. These ads are quite similar to commercial breaks on linear TV.Post-Roll Ads: These ads show up once the streamed video has ended.

Non-Linear Video Ads

Also known as overlay ads, non-linear video ads are displayed over the user’s screen concurrently with the main video content and do not interrupt streaming. These ads can be made with static text or images or with videos and animated media with CTA buttons for improved engagement.

Companion Ads

These ads can appear parallel with non-linear or linear video ads. These ads can be displayed with static images or text and even with rich media elements that wrap around the screen. These ads can help advertisers be visible to viewers with minimal disruption of streaming.

Dynamic Ad Insertion

For a CTV ad, dynamic insertion technology is key to personalization of the ad for individual users, based on their viewing habits and profile, for delivering highly relevant ad experiences.

Benefits of CTV Ads

Reach a Wider Audience: CTV ads generally have more views as compared to ads on linear TV. Plus, CTV audiences are also more engaged with ads thanks to the varying entertainment options and convenience they bring. This means that there are increasing numbers of targeted viewers on CTV, who are more likely to interact with ads.Better Targeting: CTV advertising comes with granular targeting capabilities as CTV devices deliver personalized user experiences based on first-party data that can be harnessed for insightful and precise targeting.Multiple Ad Formats: CTV advertising allows advertisers to test multiple ad formats to see which works best for certain ad campaigns.

CTV advertising is a rapidly growing field and that is for good reason. Offering a targeted, engaging, and measurable way to reach new audiences, CTV ads have many benefits to offer.