Advertising on television is a powerful and time-tested medium that has captivated audiences for decades. As technology continues to evolve at a rapid pace, a new form of TV has emerged, known as Connected TV (CTV). In this article, we will explore what Connected TV is, how it works, and the opportunities it has created for the advertising world.
What is Connected TV?
Connected TV refers to the technology that enables television sets to connect to the internet. This technology is mainly associated with smart TVs but also set top boxes and gaming consoles that offer internet connectivity. Unlike traditional TVs, which rely on cable or satellite connections, Connected TVs use internet connectivity to give access to a wide range of on-demand video, live streaming, and personalized viewing experiences beyond traditional broadcast channels. It has revolutionized the way people consume media.
Connected TV trends in Belgium
The rise of Connected TV in households had a profound impact on the television industry. Indeed, it started with the subscription based video on demand (SVOD) offer which exploded such as Netflix, Amazon Prime and Streamz. Traditional broadcasters have therefore faced new competition from these streaming services, leading to a significant shift in the way they produced and distributed content. Belgian broadcasters decided to develop their own broadcaster video on demand (BVOD) platforms with content that comes from traditional TV. You are certainly familiar with RTL Play, Auvio, VTM GO, GO Play and VRT Max. These BVOD platforms are part of the broader AVOD category and have created digital opportunities that match the new viewing behaviour.
The different types of VOD
While they all provide on-demand access to video content, the key distinction lies in the business model and content offering:
- SVOD (Subscription Vvideo on Demand) require users to pay a monthly or annual subscription fee to access their content libraries.
- AVOD (Advertising Video on Demand) provides free access to content supported by advertisement. Users can stream content without paying any subscription fees, but they will encounter ads during their viewing experience.
- BVOD (Broadcaster Video on Demand) refers to streaming services provided by traditional broadcast networks. They offer on-demand content from broadcasters with a mixture of free, ad-supported content and subscription-based access.
As you can understand, the difference between the VOD types can be blurred and is also likely to evolve with, for example, the new Netflix offer.
Why advertise on Connected TV
Advertisers have recognized the potential of CTV as an advertising medium. Indeed, investing in Connected TV can bring several benefits and opportunities:
- Reach: As mentionned, Connected TV has experienced significant growth in recent years so there it is an opportunity to reach viewers who are moving away from traditional linear TV.
- Targeting: Connected TV allows for targeted advertising contratry to linear TV. Advertisers have the ability to collect data on viewers' preferences and behaviors to deliver highly targeted ads, ensuring that their messages reach the right people at the right time.
- Viewability: Connected TV's have a high viewability rate compared to other channels such as Youtube or Social media. This can be explained by the large screen size, the habit of not skipping ad, the limited distractions and the passive viewing experience.
- Ad Formats: Connected TV offers various ad formats beyond traditional commercials, including interactive ads, overlays, and sponsored content. It provides opportunities for creativity and innovation allowing to engage viewers in new and exciting ways.
- Premium content: Many streaming services on Connected TV offer premium content and exclusive partnerships. Advertisers can explore collaborations with content providers, potentially securing placements and partnerships that align with their objectives.
- Analytics: Connected TV provides rich analytics and insights that can help optimize your advertising strategies with a data-driven approach. It allows to measure the impact of campaigns accurately and refine your targeting, creative, and messaging for better results.
How to advertise on Connected tv?
Currently, there are three ways:
- AVOD & BVOD: As explained, you can appear on Connected TV via AVOD services like Youtube or BVOD like RTLPlay or VTM Go. You just need to contact the right saleshouses to discuss, negotiate and make your deal to get access to those premium content.
- Smart TV Deals: Smart TV brands such as Philips, LG or Samsung have also launched the possibility of advertising on CTV when the user is browsing to find the app or program they want to watch.
- Addressable TV: The last option allows advertisers to deliver relevant and personalized advertising messages to specific households by leveraging data and technology for the set-top boxes. Personalized content will appear within the linear TV landscap and you may therefore see a different ad from your neighbor.
In conclusion, Connected TV represents a transformative shift in the television landscape. By combining the power of the internet with traditional broadcasting, Connected TVs have revolutionized content consumption, providing viewers with a personalized, interactive, and on-demand viewing experience. As technology continues to advance, we can expect further developments.
By embracing Connected TV advertising as soon as possible, you can stay at the forefront of the evolving media landscape and testing cutting-edge solutions answering your consumers habits.
Olivia Lohest
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