Connected TV (CTV) advertising describes the ads served to viewers tuning into streaming content on internet-connected television sets.
Unlike traditional commercials, these ads can target individual viewers based on their interests, browsing activity, lifestyle choices, and more. CTV ads can also be measured and tracked in real time, transforming the living room television into a powerful digital marketing channel.
In this guide to CTV advertising, we cover everything you need to know — including how programmatic CTV works, industry trends, the benefits of advertising on connected TV, and strategies to drive results.
But first, let’s look at the basic definitions.
Programmatic ad buying is the use of software to buy digital advertising. While the traditional method includes requests for proposals, tenders, quotes, and negotiation, programmatic buying uses algorithmic software to buy and sell online display space.
A sophisticated way to place advertising, it uses traffic data and online display targeting to drive impressions at scale, which results in a better ROI for marketers. It can also yield great results for both SMEs and global brands. So don’t ignore it even if your organization is small.
But, it’s not the complete automation of the ad-buying process. Traditionally, you manually prepare insertion orders or ad tags, which can be labor-intensive. With programmatic advertising, marketers have more time for the optimization and improvement of ads to drive campaign success.
Programmatic advertising is a powerful tool and global spend is expected to surpass $594 billion in 2024, and beyond (Statista). The US is a big spender on programmatic ads—but the UK and countries in the MENA region are catching up fast (OnAudience).
Quite simply: yes, it is successful because it’s efficient, targeted, and scalable.
One of the key drivers of the uptake in programmatic advertising is AI and how it is changing marketing.
At this point in the game, 76% of leading marketing decision-makers believe that the influence of AI will shape their programmatic advertising better in the coming years. A testament to the value that this ever-evolving branch of digital marketing has to offer brands across industries.
Programmatic advertising works for marketers as it’s an efficient use of both time and resources. And, armed with increasingly sophisticated autonomous capabilities, brands and marketers alike stand to improve their output, as well as the impact, of their targeted programmatic advertising strategies.
With programmatic advertising, you can rely on an algorithm that will determine where your ad money is best spent.
All you have to do is feed your programmatic solution information about your campaign, audience, and key performance indicators, and the algorithm will do the hard work.
If you’re looking to optimize ad spend, boost your organization’s ROI, and resonate with your target audience, programmatic advertising has the potential to help you thrive.
Now that we’ve established the benefits of programmatic advertising, let’s explore how you can use it to your advantage in digital marketing campaigns.
When it comes to programmatic advertising, there are a host of AI-driven platforms out there to explore.
Let’s take a look at the core platforms and concepts in the space.
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