How does Digital Advertising work on Smart TV?

19 October

Digital Advertising on Smart TV: Why take it into account in your marketing strategy?

Advertising is undergoing a constant transformation, and one of the most promising trends is digital advertising on smart TVs.
digital advertising on smart TVs
. Thanks to the growth of the Internet-connected television (CTV)brands are exploring an unprecedented universe of advertising opportunities. After all, almost all of us spend several hours a week in front of a Smart TV and that’s a huge opportunity for advertisers.

In this article, we will explore in detail what CTV is, how it compares to linear TV and why you should seriously consider incorporating digital advertising on Smart TV into your marketing strategy.

If you are looking for help to create Smart TV advertising campaigns, we invite you to fill in the form on this website, and an expert will contact you to help you.

What is CTV?

Internet-connected television, or CTV (Connected TV), represents a revolutionary evolution in the world of television. Users are no longer limited to watching traditional TV programs, but can also access video streaming services such as YouTube or Netflix, and browse the web directly from their TV sets. This innovation transforms the way we enjoy entertainment from our homes.

This type of technology has modified our cultural consumption patterns, which are no longer guided by an advertising grid, but rather it is the users who are in control of what to watch, when and for how long. This convergence of traditional and digital media has also created a new advertising ecosystem full of opportunities.

Linear TV vs. CTV

To understand why CTV is so exciting, it is essential to compare it to linear television. Traditional television has experienced a steady decline in its audience in recent years. Viewers are migrating to Internet-enabled TVs and over-the-top (OTT) devices.

While linear television relies on fixed programming and traditional commercials, CTV offers a more versatile and adaptable experience. The migration to CTV is ongoing (in fact, deepening) and presents a unique opportunity for advertisers to reach their audience in a more effective and immersive way. At this point it is important to keep in mind that there are already many people who do not have a linear TV, so having an advertising strategy based only on these devices will end up excluding a significant percentage of the population.

Digital Advertising on Smart TV

Digital advertising on Smart TV represents the emergence of a new advertising paradigm, marking the end of an era and denoting a significant difference with respect to traditional TV ads.

Instead of static, generalized ads for all viewers, CTV enables the creation of highly personalized, native advertising content. In this sense, you will not see the same ads as your neighbors or your friends. Why? Because, thanks to Connected TV, advertisers can target their messages precisely, using demographic and geographic segmentation, resulting in more relevant and valuable messages for the audience.

Let’s take an example. Imagine that you have an application that serves to show the status of public transport in the main cities of your country. It may be very costly to advertise nationally and end up having a

RoAS

not as high as it could be. In this case, by advertising on CTV, you could target exclusively the audience you want to reach, segmenting geographically and reaching only people who live in one of the big cities of your country. In addition, you could apply demographic targeting, if you recognize that your target audience has a certain age and you can even make specific ads for each age cohort, looking for a greater identification by the audience. In the same way, you could make differentiated announcements for each city.

Advantages of digital advertising on Connected TV

Although we have already mentioned some advantages throughout the article, let’s dig deeper into the key benefits of including digital advertising on Smart TVs in your marketing strategy.

Increased targeting accuracy

One of the most outstanding advantages of Digital Advertising on Smart TV is its ability to segment the target audience in an unprecedented way. Users must log in using universal identifiers, such as Facebook or Google accounts, to access the CTV.

This functionality allows for greater efficiency in ad delivery and a more personalized experience for viewers by enabling precise targeting based on demographics, geolocation, interests and online behaviors. Advertisers can reach highly targeted audiences, resulting in messages that resonate with precision and have better conversion rates.

High quality advertisements

The image quality of CTV allows the development of ads that adapt to the audience’s preferences and needs, making them more relevant and attractive, which ends up increasing the likelihood of a positive response from viewers.

New ad formats

CTV (Connected TV) offers a wide range of creative advertising formats

creative advertising formats

that allow advertisers to stand out in the marketplace. From animated video ads that capture the viewer’s attention to interactive ads that actively engage the audience, there are options for every taste. Advertisers have the creative freedom to experiment and choose the format that best suits their marketing objectives, whether it’s increasing brand awareness, driving consumer engagement or increasing conversions.

In particular, interactivity in video ads opens up new opportunities to engage audiences in unique ways. Viewers can interact with the content, either by answering questions, exploring products or making decisions that affect the development of the ad. This ability to actively engage not only enhances the viewer experience, but also increases the performance of advertising campaigns. In fact, interactivity has become an increasingly used feature in digital advertising due to its proven effectiveness in capturing consumers’ attention and generating tangible results.

Increased audience loyalty

CTV ads provide a unique user experience. Unlike ads on the web or mobile devices, viewers pay more attention to ads on CTV and tend to watch them for longer periods of time. This is because CTV mimics the traditional cable television viewing experience, resulting in greater audience retention and loyalty. Advertisers can take advantage of this increased attention to deliver more comprehensive and effective messages.

Real-time metrics

In the CTV era, the effectiveness of advertising campaigns can be measured in real time. Digital marketers have the ability to instantly track visits, clicks, conversions and direct responses. This capability offers opportunities to adjust and optimize ongoing campaigns, resulting in more efficient use of advertising resources.

Audiences receptive to interact

The CTV audience plays an active role in the advertising experience. The ability to interact is a key element. Generally speaking in the digital environment, and in particular on CTV, viewers can actively engage with ads and choose to participate in them.

This gives brands the possibility to better understand their audience and build loyalty. Users who actively participate in the advertising experience can become brand advocates and prescribers.

Reaching premium audiences

CTV offers the possibility of reaching exclusive audiences at key moments. Live events, such as concerts or major sporting events, attract unique and engaged audiences. Advertisers can take advantage of these moments to increase their brand visibility and obtain a higher return on advertising investment.

The future of advertising in CTV

The digital advertising landscape on Smart TV is constantly changing and growing. As more users adopt CTV, advertising opportunities are expected to continue to expand. Brands that take advantage of these trends can save on advertising spend and reach audiences more effectively than ever before. CTV is shaping the future of digital marketing, and those who leverage it in their strategies will be better positioned for success.

In short, digital advertising on Smart TV represents a new paradigm in the world of advertising. With its precise targeting capabilities, highly personalized ads and real-time metrics, CTV offers a powerful advertising platform that is transforming the way brands connect with their audience.

If you are looking for an effective and memorable advertising strategy, digital advertising on Smart TV is a tool you should not overlook and Boomit can help you create your digital advertising campaign.

digital advertising campaign

. CTV is here to stay, and its impact on digital marketing will only continue to grow as we move into the future.