A Quick Introduction to Connected TV Advertising (OTT) and Its Advantages

connected tv advertising

What is connected TV advertising?

connected tv advertising

Connected tv advertising is a lot like traditional TV advertising. The difference is that the ads are served through streamed media on connected TV platforms (Hulu, Apple TV, Roku, etc.) and shown only to specific targeted audiences based on interest, geography, etc. In short, it is like classic TV advertising, but everyone does not see the same advertisements. 

Table of Contents

With the rise of streaming media over recent years, cable television has seen a significant decline. Consequently, these trends are continuously changing the way people consume entertainment content. 

This change in audience behavior also dealt a huge blow on the effectiveness of traditional TV as advertising platforms. They do not hold the same power that they used to anymore—they are now only able to offer a small percentage of their original reach and appeal. 

On the contrary, over-the-top (OTT) or connected tv advertising is rising in prominence and more people are switching from cable broadcasting to streaming platforms. This increase in the number of audiences is enticing advertisers to explore promoting their businesses on these platforms.   

As a business looking for ways to grow and widen its reach in these times, you must have a solid understanding of connected tv advertising basics. 

If you aren’t quite sure about where or how to start, don’t worry as we’ve got you covered! In the sections below, you will learn more about this promising advertising strategy. 

What is Connected TV Advertising?

Here’s a simple way to put it: connected tv advertising is a lot like traditional TV advertising. The only difference is that the ads are served through streamed media on OTT platforms. 

Some of these platforms are streaming boxes (e.g. Apple TV, Android TV, and Samsung Allshare Cast) as well as HDMI sticks (e.g. Chromecast, Roku). Game consoles and Internet-based smart blu-ray players are classified as OTT as well. 

Although this type of advertising has been around for quite some time now, it has been seeing significant growth recently thanks to the shift in audience behavior. On top of that, OTT advertising is expected to further improve in the years to come. 

Considering this, it’s safe to say that advertising technology pioneers and its early adopters will surely reap its benefits in the near future. 

connected tv advertising

How Does OTT Advertising Work?

The methods of delivering ads depend on the streaming platform that will be used. With that said, delivering ads through OTT follows these four fundamental stages: 

1. Audience Creation

This is the first step in launching an OTT advertising campaign. An audience group is created using the data obtained from the platform. 

2. Campaign Launch

Afterwards, the platform will group the audiences according to lists created during the first step. It is through these groups where the ads will be conveniently distributed. 

3. Ad Distribution

In this step, your ad finally reaches your desired audience through the OTT platforms. It’s worth noting, however, that the ads shown to them are not randomized. The platform uses various tags to identify what and how a particular ad should appear to a viewer. 

4. Feedback

In this final stage, you receive a report created and sent by the platform. This contains all the statistics and metrics measuring the performance of your ad. These details will help you determine whether the campaign has been successful or not.  

Conclusion

As connected TV advertising is taking the place of traditional TV advertising, businesses like yours must learn to adopt it sooner than later. However, since it entails the use of relatively newer technology, it can be quite hard to utilize at first. The bright side is that all you need to do is gain a solid foundation on how to work with OTT tools. There are digital marketing companies that have the skills and expertise to help you with this quickly and painlessly. 

If you need help with your firm’s OTT advertising, EIC agency has got you covered! We’re a digital marketing agency with one goal: to help businesses like yours grow through digital communications. Get in touch with us today to learn more about our services! 

A Taste Of What We've Done