How CTV Can Power Your OTT Strategy

Lisa Morgan

Lisa Morgan About The Author

Oct 18, 2021 11:44:00 AM

How CTV Can Power Your OTT Strategy

By now, there aren't many businesses that haven't heard of over-the-top (OTT) and its importance in advertising. This is especially true since most people have begun to replace linear TV for streaming platforms like Netflix, Disney, and Peacock that only require internet access and (sometimes a subscription) to watch. The truth is, OTT viewership is rapidly growing by the minute, and businesses have been quick to take advantage. 

Media trends show 82% of U.S. consumers have a video streaming subscription, with four subscriptions being the average (compared to 67% of people having a pay-TV subscription in 2021).  

These numbers are only expected to continue growing alongside advertising revenues, with OTT/CTV video advertising set to have ad revenues of $119 billion by 2023. Here's how CTV advertising can power your OTT marketing strategy.  

The Power of CTV  

How CTV Can Power Your OTT StrategyConnected TV (CTV) refers to a Smart TV or device connected to a TV that supports OTT content streaming services. The most popular CTV examples are Chromecast, Roku, Amazon Fire Stick, and gaming consoles like Xbox and PlayStation. As far as Smart TVs, as much as 70% of TVs sold today have 'smart' capabilities, so chances are your consumers already have access to streaming.  

This is primarily due to the shift from linear TV to CTV over the last few years, as millions of cord-cutters are removing cable and using streaming/CTV instead. According to Statista, 82% of American households own at least one internet-connected TV device and spend an average of 2.3 hours using an enabled smart TV daily and a further 3.6 hours using internet-connected devices such as Apple TV and Google Chromecast.   

Thanks to the boost of the pandemic, CTV has seen an unexpected spike in viewership that it wasn't predicted to reach for a few more years. A Nelson study reported by Forbes found that streaming video accounted for 25% of total television viewing minutes during the pandemic in 2020 (up from 19% from the fourth quarter of 2019). Furthermore, "weekly time spent with streaming video in [the] second quarter was 142.5 billion minutes, an increase of nearly 75% from the 81.7 billion minutes during second quarter 2019." Essentially, research is showing the power of CTV is undeniable.  

The Benefits of CTV Advertising  

Research aside, CTV advertising brings brands a whole new level of potential in reaching and resonating with their target audience. Some of the most valuable benefits of CTV advertising include: 

  • A very engaged audience — research shows that CTV viewers are among the most active consumers you can reach with your advertising. According to Justin Chadwick, VP Marketing, Tremor Video, "As a result of consumers increasingly engaging with CTV content and at notably higher rates since the COVID-19 outbreak last year, we are seeing more and more advertisers making CTV a prominent fixture in their strategic planning." 
  • Many cannot skip ads (and even opt-in to receive them!) — better yet, those engaged audiences can't skip most ads that opt-in to view ads in exchange for free or cheaper subscription pricing. The Trade Desk reports 58% said they would watch ads if the subscription were $4 to $5 less than the ad-free option, and almost two-thirds (67%) said they would choose ad-supported TV over an ad-free subscription. 
  • Easy targeting (marketers can use first-party data for advertising to audiences) — Like other digital channels, CTV is also great for collecting and using first-party data to ensure your brand's message is targeted to the right audience. This can also save your business a lot of money in wasted ad spend. 
  • Affordable (cheaper than traditional TV) — By now, you likely know how expensive conventional TV ad spots can be. While their reach is among the highest, you will find that CTV advertising is much more affordable.  
  • More flexible than buying a TV ad spot — With TV, your options are limited to the traditional 30-second commercials, but with CTV, your brand has more time-slot options and opportunities to be more interactive.  
  • CTV easily integrates into omnichannel marketing — As omnichannel marketing grows in importance, CTV plays a significant role in reaching your audience with consistent and personalized messaging. Its highly targeted capabilities allow you to integrate CTV advertising into your omnichannel marketing strategy more efficiently.  

Build Your OTT Strategy with the Capabilities of CTV  

How CTV Can Power Your OTT StrategyOTT is a no-brainer for marketers considering its rapid growth and popularity when it comes down to it. CTV advertising, in particular, can bring your brand many more opportunities to reach your target audience on the platforms they're already on.  

Insider Intelligence reports that Connected TV is one of the fastest-growing channels in 2021, growing to more than $9 billion in 2020 (a 40.6% YOY), more than $13 billion in 2021, and expected to increase to as much as $24.76 billion by 2024.  

Building your OTT campaign strategy with the capabilities of CTV will benefit your business with all the following: 

  • OTT ads are more affordable  
  • Better targeting   
  • Reach ideal markets  
  • Increased control over campaigns  
  • Measurable results  
  • Higher ROI  

Even better, the capabilities of CTV are continually growing and evolving as marketers get more accustomed to the newer method of marketing. OTT and CTV are still fairly new, and as technology continues to grow immensely, so does the efficiency and potential of OTT/CTV advertising. 

Boost Your OTT/CTV Strategy by Working with a Media Partner  

A lot goes into leveraging CTV in your OTT marketing strategy, including an extensive amount of experience and expertise in the area. When done correctly, there's no denying what OTT/CTV advertising can bring to your brand to reach and resonate with the right audience. Working with a media partner gives access to the experience and expertise you need to execute your campaign flawlessly, reducing the headache of learning the ins and outs yourself and ensuring you're using it to its maximum potential.