Following the success of our primer on Connected and Addressable TV, we thought we’d dive a little deeper this month, and explore the many benefits for advertisers.

We know traditional TV advertising works. Since the first UK spot for toothpaste was broadcast in 1955, advertisers have used to television to reach broad audiences and establish a strong brand presence. With the advent of CTV, advertisers now have access to more advanced targeting methods to reach their desired audiences. Here’s five key benefits the technology brings to advertisers…

1. Targeted Advertising

One of the most significant advantages of CTV for advertisers is the ability to target specific audiences accurately. Unlike traditional TV advertising, where messages are broadcasted to a general audience, connected and addressable TV allows advertisers to deliver ads to households based on demographics, interests, and viewing habits.

This level of precision ensures that ads are seen by the right people, maximising the chances of conversions and return on investment (ROI). Research by Sky found viewers 21% more engaged with addressable ads, with attention up to 35% higher than traditional spots.

2. Increased Reach

CTV expands the reach of advertisers beyond the limitations of traditional TV. With streaming services and smart TVs becoming increasingly popular, advertisers can now tap into a wider audience base that might have cut the cord on satellite and cable TV.

In the UK, its forecasted that the number of pay TV subscribers will fall by over one million within the next five years.

3. Personalisation and relevance

CTV enables a higher level of personalisation and relevance in advertising. Advertisers can deliver tailored messages to different households, ensuring that viewers see content that resonates with their preferences and needs.

At Campaign’s 2023 TV Advertising Summit, Mars Petcare’s European ICP strategy director Samira Ebrahim explained why they use CTV for Whiskas, Dreamies and Pedigree:

“In the UK, about 50% of people own a pet, so there’s a significant amount of wastage in traditional buys using broad demographics. So, the first thing we do is use our data to confirm if someone has a cat or a dog because then we’re actually talking to the right people.”

The benefit of using this first-party data is that advertisers can create a more relevant and engaging user experience, increasing the likelihood of capturing the viewer’s attention and fostering brand loyalty.

4. Data-Driven Insights

Another remarkable benefit of CTV advertising is the access to data-driven insights. Advertisers can gather valuable data about ad performance, viewer behaviour, and engagement levels. These insights help advertisers refine their ad strategies, optimise targeting, and improve overall campaign performance.

5. Cost-Effectiveness

Finally, CTV advertising offers cost-effectiveness compared to traditional TV advertising. With the ability to target specific households, advertisers can avoid unnecessary ad spends on viewers who are unlikely to be interested in their products or services, for example only advertising pet food to pet owners.

This level of precision targeting ensures that advertising budgets are used efficiently, providing higher returns on investment and reducing wasted advertising expenses.

FAQs

1. What is connected TV advertising?

Connected TV advertising refers to advertising that is delivered to viewers through internet-connected devices, such as smart TVs, streaming media players, and gaming consoles. This form of advertising allows for more targeted and personalised ad delivery.

2. How does addressable TV advertising work?

Addressable TV advertising uses data to target specific households or individual viewers with relevant ads. Advertisers can select their desired audience based on demographics, interests, and viewing behaviour.

3. Is connected and addressable TV advertising expensive?

Connected and addressable TV advertising is cost-effective in the long run due to its precise targeting, which reduces wasted ad spend.

4. Can advertisers measure the effectiveness of their connected TV ads?

Yes, connected TV advertising provides valuable data-driven insights, allowing advertisers to measure ad performance, viewer engagement, and other metrics to assess campaign effectiveness.

5. How can advertisers get started with connected and addressable TV advertising?

The best way to get started is to talk to Smithfield’s expert CTV team today.