Connected TV Is the Future of Digital Advertising

Published: February 4, 2021

Getting ads onto premium channels — without a premium price tag.

Since the onset of COVID-19 in early 2020, Digital Relativity has moved quickly to adapt digital marketing strategies for our partners and double down on the new surge in demand for Connected TV (CTV) advertising.  

According to our partners at The Trade Desk, a staggering 27 percent of consumers said they intend to ditch their cable subscriptions this year, up from 15 percent in 2020. This exodus isn’t being driven by just millennials or so-called digital natives, either. In fact, more than 20 percent of those 55 and older said they intend to end their relationship with cable in 2021, a significant upswing from the 8 percent who made similar remarks last year. 

So with no cable, where does that leave us? What will people watch, and where will all that ad revenue go? In 2018, The IAB Video Landscape Report found that around 13.5 million households have abandoned traditional TV consumption in favor of internet-powered television, or Smart TV. And with COVID-19 keeping people at home, Conviva reports that streaming time is up 26 percent in the US and 20 percent globally.

What is Connected TV, and why is it important? Connected TV is content delivered via streaming services (such as Hulu or Netflix) through boxes or sticks (such as Roku, Chromecast), smart TVs, gaming consoles or computers/laptops. Connected TV is quickly changing the landscape of television.  

Why advertise on Connected TV? Many of our partners have invested in CTV campaigns because they can reach vast audiences that aren’t watching cable TV anymore. CTV campaigns also give them the opportunity to be more creative with targeted messaging. Additionally, CTV ads can be served before content or during commercial breaks like traditional television. 

Perhaps most important, Connected TV advertising allows us to serve relevant ads to specific audiences, thus offering greater control over who sees your ads and how often. Below is a brief review of the data and strategies we utilize in a Connected TV advertising campaign.  

  • First-party data is defined as data that a company has collected directly from the audience (CRM data, site visitors, social media followers, etc).  
  • Third-party data is created by analyzing first-party data for trends and patterns in customer behavior, creating the ability to serve relevant ads to households based on interests, in-market tendencies, age, gender, income, etc.  

We also advertise across device type, meaning we can match a smartphone, laptop, tablet, Smart TV or any connected device to a specific individual and control ad frequency, ensuring that we do not repeat the same ad multiple times, which could cause ad fatigue. 

Digital Relativity utilizes The Trade Desk platform to offer our partners a HUGE variety and selection of Over-The-Top (OTT) inventory.  

  • Over-The-Top (OTT) inventory is simply any streaming video content circumventing traditional cable TV and satellite subscriptions. We match target audiences to OTT inventory like CBS, ABC, NBC, Fox, Amazon Fire, Apple TV, Discovery, ESPN, Sling, Roku and Hulu to ensure our campaign goals are met. 

The vast array of options allows us to uniquely target audiences and customize strategies. All of our content partners are vetted to ensure safety and the best user experience. 

What are the key metrics for Connected TV? At Digital Relativity, we love Connected TV advertising campaigns because of the variety of opportunities and flexibility they provide. We also love sharing results with our partners, and CTV allows us the ability to measure everything. Key metrics include: 

  • Impressions – a metric used to quantify the amount of digital views or engagement an ad receives. 
  • Video Completion Rates (VCR) – out of the number of people that watched an ad on a Connected TV device, this many bought a product or visited my website.

These metrics allow us to tweak CTV advertising campaigns mid-stream if necessary and deliver the very best results to our partners. Helping our partners get their ads on the big screen without a big price tag, deliver their message to the right target audience and help shape the future of digital advertising. That’s what we do. 

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