Why You Should Run Ads on CTV: An Essential Overview OF CTV Ads

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4 min read

Why You Should Run Ads on CTV: An Essential Overview OF CTV Ads

As digital consumption continues to rise, advertisers increasingly turn to Connected TV (CTV) as a powerful medium for reaching audiences. But what makes CTV such an appealing platform for advertisers? In this article, we’ll explore why you should run ads on CTV for your marketing strategy, supported by key data and statistics.

What is CTV Advertising?

CTV advertising involves delivering video ads through internet-connected devices like smart TVs, streaming devices (e.g., Roku, Amazon Fire Stick), and gaming consoles. Unlike traditional TV, which broadcasts to a broad audience, CTV leverages digital technology to deliver targeted, interactive ads to viewers.

The Rise of CTV

The transition from traditional cable TV to streaming services has transformed how audiences consume content. According to Nielsen, streaming now accounts for 38.2% of total TV usage in the U.S., and this number is growing. The increasing popularity of platforms such as Netflix, Hulu, and Amazon Prime is fueling significant growth in the CTV space, making it an essential channel for advertisers

The Global Reach of CTV

CTV Worldwide Users

CTV is a global phenomenon, with its usage growing rapidly across the world. According to Statista, the number of CTV users in the U.S. alone is projected to reach 274.4 million by 2025. On a global scale, there are expected to be over 1.3 billion CTV households by 2026, showcasing its vast reach and potential for advertisers.

CTV Audience Demographics

CTV attracts a diverse audience, from tech-savvy millennials to older demographics looking for convenient and flexible entertainment options. This broad appeal allows advertisers to tailor their campaigns to specific demographic segments, enhancing the relevance and impact of their messaging.

CTV usage patterns vary by region. For example, in North America, streaming services are a dominant form of entertainment, while in Asia, many viewers access content through mobile devices connected to their TVs. Understanding these regional differences helps advertisers tailor their strategies to reach their target audiences effectively.

Benefits of CTV Advertising

CTV Engagement

CTV ads typically achieve higher engagement rates than traditional TV ads. According to a study by Innovid, CTV ads have an average completion rate of 95%, significantly higher than the 70-75% completion rate for traditional TV ads. This is partly because CTV viewers are more engaged with the content they are watching and more receptive to ads that are relevant to their interests.

CTV Ads Reach

CTV ads have a broad reach, with the ability to target specific audience segments across multiple devices. According to eMarketer, CTV ad spending in the U.S. is expected to grow to $27.47 billion by 2024, highlighting the increasing importance of CTV as an advertising medium.

CTV Effective Result Stats

CTV advertising has been shown to deliver impressive results. A report by Extreme Reach found that CTV ads have a viewability rate of 98%, compared to 64% for desktop video ads. Additionally, CTV ads boast a click-through rate (CTR) of 1.84%, which is significantly higher than the average CTR for display ads, which hovers around 0.35%.

CTV ROI

Investing in CTV advertising offers a strong return on investment (ROI). According to a report by the Interactive Advertising Bureau (IAB), CTV delivers an ROI that is on average 25% higher than traditional TV. This higher ROI is attributed to CTV's precise targeting capabilities and the ability to measure performance metrics in real time, allowing for better campaign optimization.

CTV Ads Growth

The growth of CTV advertising is undeniable. According to eMarketer, CTV ad spending in the U.S. is expected to exceed $30 billion by 2026, driven by the increasing shift from traditional TV to digital streaming platforms. This rapid growth highlights the importance of CTV as a critical component of modern advertising strategies.

Why We Need to Go for CTV Ads

Given the impressive engagement rates, broad reach, and high ROI, it's clear why more advertisers are turning to CTV. Unlike traditional TV ads, which offer limited targeting capabilities and are often skipped or ignored, CTV ads are designed to capture and hold viewer attention. The ability to deliver interactive and personalized ad experiences makes CTV a powerful tool for driving brand awareness and increasing conversions.

Conclusion

As the media landscape continues to evolve, CTV advertising stands out as a highly effective way to reach and engage audiences. With its global reach, diverse user base, and advanced targeting capabilities, CTV offers advertisers a unique opportunity to connect with viewers in meaningful ways. Whether you’re a small business or a large corporation, running ads on CTV can help you achieve your marketing goals and stay ahead of the competition.