In the beginning of digital advertising, display ads were very popular due to their visibility, ease of creation and valuable user behavior insights. However, as the industry progressed, issues such as fraud, commoditization and lack of transparency arose, causing challenges for display advertising.
Recently, connected television (CTV) has emerged as a new form of digital advertising, offering benefits for both advertisers and consumers, such as better targeting capabilities, easy ad creation, and increased engagement. CTV is becoming increasingly popular, with two-thirds of US viewers now using it and daily usage increasing by over 100% since 2017. Streaming platforms are also turning to ad-supported models to reach more viewers looking for free or cheaper access.
Connected TV (CTV) is poised for continued growth and innovation in the coming years. Here are a few trends that are likely to shape the future of CTV:
- Increased Personalization: CTVs have the ability to collect a lot of data about viewers, and advertisers are likely to use this data to personalize ads even further in the future. This could mean more relevant and engaging ads for viewers, but it also raises privacy concerns.
- New Ad Formats: CTVs offer a range of new ad formats that are not possible on traditional TV, such as interactive ads, shoppable ads, and augmented reality ads. Advertisers are likely to experiment with these formats and create new ones to engage viewers in innovative ways.
- Advanced Targeting: CTVs offer more advanced targeting capabilities than traditional TV, such as targeting viewers based on their viewing habits, interests, and demographics. Advertisers are likely to continue to refine their targeting capabilities to reach the right audience with the right message.
- Ad Measurement: As the CTV industry matures, advertisers are likely to demand more robust
What is a better option CTV or Traditional TV?
There is no straightforward answer to whether Connected TV (CTV) or traditional TV is better, as both have their advantages and disadvantages, and the choice largely depends on the needs and preferences of the viewer or advertiser. Here are some factors to consider:
Advantages of Connected TV:
- Greater flexibility and convenience: CTV allows viewers to watch their favorite shows on demand and from multiple sources, making it more flexible and convenient than traditional TV.
- Advanced targeting capabilities: CTV offers more advanced targeting capabilities than traditional TV, allowing advertisers to reach their intended audience with greater precision.
- Interactivity and engagement: CTVs offer new ad formats that allow for interactivity and engagement with viewers, making it possible for advertisers to create more engaging ads that can drive higher conversion rates.
Advantages of Traditional TV:
- Wider reach: Traditional TV still has a wider reach than CTV, especially for live events and programming.
- Simplicity and ease of use: Traditional TV is simpler and easier to use, with no need for internet connectivity or other devices.
- Familiarity: Traditional TV has been around for decades, and many viewers and advertisers are familiar and comfortable with it.
In conclusion, whether CTV or traditional TV is better depends on the specific needs and preferences of the viewer or advertiser. While CTV offers greater flexibility and targeting capabilities, traditional TV still has wider reach and simplicity.