First there was television, then online video. Today, there’s a new hybrid known as Connected TV. Connected TV (CTV), also referred to as over-the-top (OTT), enables users to watch full-length video content on their television through integrated apps such as Netflix, Hulu, HBO, A&E, Youtube and Sony. Gaming consoles, BlueRay players, set-top boxes (think Apple TV and Roku), and built-in IPTVs “connect” these apps to your existing TV set. eMarketer projects that there will be over 200 million CTV devices in use by 2017.
What does this mean for video advertising? We all know that digital video adverting is expected to double by 2020, but how does CTV play into the mix? CTV video ads are played in-stream as pre-roll, mid-roll or post-roll, and consume the full screen of the television. Much like standard TV commercials, a :15 or :30 second spot is the ideal length. CTV advertising is sold on a CPM basis and while it is a premium compared to desktop and mobile in-stream, it is much less expensive than traditional TV spots.
CTV is not just another channel for advertisers to run their video ads, it is a crucial part of the marketing mix. A study of US digital video viewers by RealityMine in 2015 found that 65% used subscription services such as Netflix and Hulu as their primary digital viewing mode and 43% of those were viewed through CTV. If you are looking to reach the 18-34 year old audience, it is imperative that CTV is included in the media plan.
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