Brands are rethinking how they connect with audiences making the whole digital marketing industry experience a significant shift. Streaming services are slowly taking over, ushering in a new era of content consumption and forever changing the way audiences watch TV. This is both a challenge and an extraordinary opportunity for marketers. In this light, connected TV (CTV) advertising is one of the most rapidly evolving and essential tools in the modern marketer’s arsenal.
CTV advertising is no longer a “maybe”, it’s a “must” in 2024. With millions ditching cable services for streaming, marketers have to change their game to remain relevant and impactful. CTV advertising is a bridge between the very precise targeting of digital marketing and the immersive experience of traditional television. For brands looking to get the most out of their engagement, it’s a win-win.
We have been carefully watching this shift at Creative Clicks, analyzing trends, and creating innovative strategies to take full advantage of CTV advertising. In this article, we will go deep into the world of Connected TV, how it’s developed, how it’s affecting consumer behavior, and how forward-thinking brands can use this medium to get the best ROI and user engagement.
We’re moving towards a future where traditional television is losing its grip and streaming comes to the top: streaming services are on the rise, while traditional TV channels can’t seem to keep their viewership up. This shift is not just a passing trend: it is a fundamental change in how audiences consume content, and smart marketers are taking notice.
A recent industry analysis shows us exactly what this transition looks like: in the US, 99% of households have at least one streaming subscription, and the average US citizen spends $2.9 per month on streaming subscriptions. According to the Hub Entertainment Research study, as of 2024, 79% of US households own at least one CTV device, up from 70% in 2021. The popularity of CTV has created new avenues for advertisers to reach audiences with unparalleled accuracy and efficiency.
Mostly, the limitations of traditional TV advertising are tied to its reliance on broad demographics. But CTV introduces a new era of granular audience targeting. This shift allows us to run laser-focused campaigns, targeting the most relevant viewers, and maximizing campaign effectiveness. So, let’s break down the advantages CTV brings to the table for creating highly targeted, impactful advertising experiences.
CTV advertising is one of the most precise targeting advertising options. Unlike traditional TV advertising, which often relies on broad demographic data, CTV provides granular audience segmentation using a wealth of data points.
We use AI-driven analytics at Creative Clicks to help our clients take advantage of these new targeting options. Imagine a campaign for a high-end car brand that is not just about targeting by age or income. CTV allows a brand to identify people who not only meet the financial profile, but also care for the environment, and are passionate for technology. Thanks to the targeting precision, the client received more qualified leads compared to traditional TV advertising.
What empowers CTV to achieve such impressive results?
CTV platforms are inherently interactive, and as such, have higher engagement rates than traditional TV advertising. CTV ads outperform their linear TV counterparts when it comes to viewer attention and response. The average completion rate of CTV ads is 97%, a number that is significantly higher than what traditional TV can provide.
CTV can boast this increased engagement due to several factors:
With CTV advertising, brands have a unique way to connect with their target audiences — at scale, clear, and measurable.
We have developed a data-driven methodology at Creative Clicks, which combines deep audience understanding with cutting-edge creative execution. So let’s take a look at the main elements of a successful CTV campaign.
A successful CTV campaign starts with knowing your target audience inside out. In today’s day and age, the viewer behaviors and preferences are more diverse and nuanced than ever. For CTV campaign success, it’s crucial to have audience insights because most CTV viewers expect ads to be relevant to their interests.
Why audience research and persona development matter:
How can brands better understand streaming user behavior?
At Creative Clicks, we use machine learning algorithms across vast amounts of data to figure out future trends and hidden patterns of viewer behaviors, as well as their content preferences and purchasing habits. We also use behavioral mapping and advanced conversion attribution models to understand how users navigate across devices and create comprehensive profiles of how they engage with content and ads. For brands, it will also be wise to get more data from streaming platforms themselves: services like Roku and Amazon Fire TV provide user data and instant feedback of your campaigns, so you can optimize quickly. With this holistic approach, you’ll have campaigns that speak to the right people at the right time.
Once you have a deep understanding of your audience, the next step is to create an ad that will capture and convert your audience. CTV has unique opportunities for immersive storytelling and interactive experiences that traditional TV cannot provide.
Tips for creating compelling and engaging CTV ads:
Think of a brand in the D2C furniture space wanting to improve their marketing strategy and capitalize on the one-of-a-kind opportunity that CTV advertising offers?
The 30-second ad would open with a captivating visual: a living room that’s undergoing a dramatic transformation — one that grabs viewers’ attention instantly. The ad, working with dynamic creative optimization, tailors the furniture styles to reflect the user’s past interactions with the brand, adding a layer of relatability.
To make it more engaging for the viewers and bring them closer to the CTV experience, the ad would contain an interactive QR code. Viewers scan the code and with AR technology they see how the furniture would look in their own living space. This results in much higher conversion rates and engagement with the brand through a seamless transition between the ad, demo and purchase.
The streaming revolution is not only changing how audiences consume content, it's changing the advertising landscape, as we've seen throughout this deep dive into Connected TV advertising. The shift from traditional TV to CTV platforms is an unprecedented opportunity for brands to connect with their target audiences in more precise, interactive, and measurable ways than ever before.
Let's recap the key benefits and strategies we've discussed:
We’ve seen firsthand how brands that adopt CTV advertising are gaining a competitive edge. Well executed CTV campaigns result in increased brand awareness and higher conversion rates. We encourage marketers to look into CTV advertising and its capabilities. Tailor your messaging and refine your targeting, whether you’re a global brand looking to reach a new audience or a startup looking to make a big impact.
Ready to take your marketing to the next level with CTV advertising? Reach out to us!
