While marketers from around the world were flocking to Advertising Week in New York City and waiting in line to see Paris Hilton and other marketing legends, I was tucked away in a state-of-the-art podcast studio (Studio G/340) with marketing experts of my own. Andrew Barbuto, Basis Technologies, and Jacqueline Jones, Giovatto Agency, sat down with me to discuss everyone’s new favorite marketing channel, Connected TV.

According to eMarketer, marketers’ investment in Connected TV should reach over $25.09 Billion by the end of 2023 and then projects a spend of $40.9 Billion by the end of 2027. Andrew believes those numbers are too low and predicts higher volumes around $50 Billion in 2027. I agree with that prediction. Marketers from Fortune 100 companies and even local businesses that have historically relied on linear TV are adopting CTV at a much faster rate than anyone anticipated. And here’s why.

CTV = Internet Connected Television

Connected TV is simply internet-connected television. So rather than accessing your content through a cable company with a cable box that someone came and installed in your home, you’re just accessing your favorite TV shows and movies through the internet.

Andrew does a great job of explaining that for the last 30 years, traditional or linear TV has been the most significant marketing channel in terms of dollar amounts spent. However, for the last decade, all generations have been canceling their cable subscriptions and cutting the cord in favor of streaming their content online. Is this relatable to you? Well, advertisers are seeing the opportunity here and jumping in with both feet. And why wouldn’t they? Historically, many brands have been unable to access the TV screen because it’s expensive. Today, these marketers can utilize digital assets and gain access to their target audiences on the TV screen.

To understand the new world of Connected TV, it is important to know who the players are and how the decisions that they are making will continue to shift the landscape now and in the future.

As the growing number of streamers begins to overtake the traditional cable and broadcast viewers, Andrew also points out that new offers will accelerate this even faster. He points to Netflix and its new offer to consumers for ad-supported content. And how Disney is quickly following suit. In the game of follow the leader, consumers can expect lower-cost subscription models in exchange for ad-supported content on their favorite apps. This is a significant signal for those who haven’t considered CTV a marketing channel to get on board.

This feels like everyone’s first question, doesn’t it? And while these terms have been around for a while, marketers are still defining what OTT (Over The Top) vs. CTV (Connected TV) advertising is. The short answer is OTT is content that can be streamed on your desktop, tablet, or mobile device, whereas CTV is exclusively on your TV screen. Mystery solved! Granted, this is still a maturing medium, and these definitions could and likely will evolve.

If you are already a linear TV buyer, I suggest that you contact your agency partner today to ask about CTV. If you have not been able to invest in linear TV in the past, now is the time to get into CTV. Jacqueline does an excellent job of explaining that because you can target your specific audiences, including first-party data. Traditionally, with linear TV, you are casting a wide net and relying on the networks to give you a breakdown of their audiences. With Connected TV, you control your audience and who sees your ad. This is the primary game changer, in my opinion.

Jacqueline also notes that companies need to ensure clear messaging and brand voice with apparent guidelines. Because we are talking about the TV screen, think SSM, Sight, Sound, and Motion. Because CTV is at the top of the funnel, brand awareness, messaging, and tone will be reinforced further down the funnel, resulting in measurable conversions.

So now that we are all hyped about CTV and brainstorming the fantastic new campaign to reach our ideal audience through their favorite screen, we need to discuss the challenges involved. As CTV adoption grows, the number of platforms, streaming services, and devices continues to expand. There are many choices and ways to utilize CTV in your media plan, and those options will only grow and become more complex. How can brands capitalize on this channel while navigating all the available options?

Answer: Talk to your agency and data partners.

The odds are, if they haven’t recommended this to you already, they should be versed in the space and be able to walk you through a recommended media plan. If not, well, call me!

Here is some additional advice that I will give before you dive into the beautiful world of Connected TV. Have a goal. Understand what you are trying to accomplish, who is your target audience, and how you will measure your campaign’s performance. All of that needs to be buttoned up before you discuss how you will deliver that message through this channel.

The complexity of CTV means that marketers must choose the right technology, creative, and data partners to help get the most out of this channel.

We covered a lot of ground in Part 1 of CTV Unplugged. Please check out the full episode and listen in on our conversation about real-world case studies, additional tips for overcoming fragmentation, and a glimpse into the future of CTV.

Don’t forget to register to receive our next two episodes in your Inbox. We will be back live in January to see what CTV trends are in store for 2024!  See you next time! #LetsTalkMarketing.