Connected TV Advertising: Future of Television Commercial

06 December , 2021 by Rashida Saeed
Connected TV Advertising Future of Television Commercial

Even though we are living in an age where Netflix and YouTube grab more eyeballs, video consumption on TV still remains the king when it comes to returns on investment, awareness, and brand recall. Every day millions of people around the world watch television and advertisements. Television ads help create, build and grow your brand. It keeps the brand alive in a viewer’s mind for much longer than a sponsored post or search result.

There are many reasons why all businesses should advertise on TV. In this post, we will give you all the information, current trends in TV Commercials, and facts that demonstrate why TV remains the most effective promotional medium of all time.

  1. What is a TV Commercial?

Television commercials are compelling tools that can persuade viewers to adopt a specific point of view on a topic and convince people to buy goods or services. They try to target people’s emotions. Dialogues, images, music, slogans, and many types of special effects are used to attract viewers.

It is said that to date television advertising is the best selling media ever invented. It has a potential advertising impact unmatched by any other media. It is a means of bringing actual demonstration in the homes of the prospects.

All said and done, TV advertising is not the same anymore. It has evolved. What might have worked a few years ago might not be relevant today, which is why it’s important for any business to stay on top of the latest trends.

  1. TV Advertising in 2021 & Beyond

Back in the day, when television had just started, media buyers had it pretty simple when planning a television advertising buy. There were just a few stations to choose from. Then came the satellite and cable, options increased further. Fast forward to today, now we have streaming. 

  1. 1 Current Trend in Watching Television

We’re still watching TV; the big difference is how we’re watching. The reality is, people are streaming more now than ever before, consuming TV on multiple devices, across multiple networks, all hours of the day.

These changes in behavior and options have driven new opportunities, and challenges, in modern media buying. With the increased number of streaming options, differences in targeting and platforms as well as audience fragmentation, developing a brand awareness campaign for TV requires a lot of strategies and planning to be effective. When the mix is right, however, the magic remains—TV is still one of the strongest media choices for building awareness, no matter how audiences choose to view their programs.

2.2 Different Ways to Reach Television Audience

Whether it’s traditional linear TV – broadcast, Cable or Satellite, or a Connected TV device – OTT Streaming, audiences are still very much engaged in television, and we now have more ways to reach them. This means many advertisers are now wondering “which is the best platform to reach the television audience of today?” Let’s go over each of these platforms briefly for a better understanding.

  •  Broadcast

For an advertiser, broadcast television is still an effective way to reach a large number of people. With 99% of homes having access to broadcast channels, you can target your advertisement to run during specific programs (TV shows), to certain age groups, and within specific DMAs (think large geographic regions). 

Advertising through broadcast television provides a broad reach. Audiences watch live which means they are engaged and watching commercials. It gives you a safe environment, live programming, and the opportunity to use topical content.

  • Cable

The beauty of cable advertising is similar to broadcast except that where broadcast stations deliver reach in a large geographic area, the cable can be targeted to smaller geo-areas. 60-65% of homes still have cable television, despite the recent decline.

There are many households who still want to keep some level of cable service plus explore other options. This is why as an advertiser you still have to consider advertising on cable TV.

  • Over-the-Top Television (OTT) Streaming

OTT is a relatively new advertising platform that allows advertisers to reach viewers who are streaming their content via the internet or through a connected TV device that bypasses cable box access. 

If you are a brand that wants to target affluent households, young families, or millennials, OTT would be a very good option as these viewers tend to stream a large portion of their content.

  1. Where Should You Advertise?

Amid the pandemic with people spending more time at home, connected TV grew exponentially in 2020. There are certain consumers that simply cannot be reached on traditional TV anymore – only streaming or Connected TV platforms. Going into 2021, this momentum will lead to continued rapid growth in this channel.

Today, Connected TV is at the very heart of the new age of TV advertising. So, it’s important to reach people where they are. 

People want to make authentic connections with brands, not feel like a target. Connected TV advertising offers brands a way to reach their target audience using connected TV and OTT devices. It’s affordable, diverse, and offers niche targeting. You can even see real-time metrics to help you improve your ad campaign.

Connected TV clearly offers many benefits to advertisers looking to get in front of their target audience. Here are some of the most noteworthy connected TV advertising statistics for 2021:

  • 69.8 million U.S. homes stream video to a CTV in 2020. (Comscore)
  • 60.1% of Americans will be using connected TV by 2022, totaling 204.1 million. (eMarketer)
  • 60% of connected TV viewers would prefer to watch free content over a paid ad-free service. (SpotX)
  • As of 2020, more than 40% of adults are CTV consumers. (SpotX)
  • 72% of homes with a smart TV use it to watch connected television. (nScreenMedia)
  • The median age of connected television audiences in the U.S. is 45 years old. (SpotX)
  • Connected TV viewers are 42% more likely to buy a product compared to traditional TV viewers. (Unruly)
  • Connected TV ad spending will increase 40.1% in 2021, reaching $11.36 billion. (Exchangewire)
  1. What are The Different Types of Connected TV Ads?

If you want to advertise on connected TV, you need to understand the different types of connected TV ads. Here’s a brief detail about each type:

In-stream video ads – Usually 15 or 30 seconds long, these ads are placed intermittently throughout a TV show. The best thing about these ads is that they cannot be skipped.

Interactive pre-roll ads – Similar to in-stream video ads, interactive pre-roll ads are shown in the middle of a TV show, but they have an option to click the ad that will take you to a landing page. Such ads are excellent to drive ticket sales, promote an event, etc.

Home screen ads –  These ads are on the main display page of a connected TV before the user clicks to watch a particular program. They can also include a specific call to action.

Wrapping Up!

We are already approaching 2022, and connected TV advertising still continues to be one of the best markets for a wide range of brands looking to get in front of a highly targeted audience. 

Connected TV advertising is an excellent choice for companies looking for new ways to reach their target audience. With connected TV viewing and ad spending growing exponentially every year, it’s important to take advantage of this trend. The viral nature of the internet also makes it easy for an ad to get shared and seen by thousands of viewers on social media platforms.

At Studio52 we offer a number of different options to create the perfect TV advertising campaign for your brand, whether it is for the connected TV or the linear TV. Having worked on more than thousands of successful ad campaigns, and being one of the most reputed video production companies in Saudi Arabia we can assure you that you will get nothing less than the best.
Have any questions?
Contact our team for more information on our TV advertising services.


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Connected TV Advertising: Future of Television Commercial

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