With over 50 million smart TVs sold worldwide, the connected TV market continues to grow at a rapid pace. Investment and spending in connected TV advertising rose to an incredible $8.1 billion in 2020 – and this means that you can pretty much guarantee that advertisers will continue to invest heavily in the connected TV space.
The growth of the connected TV market has been fuelled by the increasing popularity of streaming services such as Netflix, Amazon Prime Video, and Hulu. In addition, the proliferation of smart devices such as smartphones, tablets, and laptops has also contributed to the growth of the connected TV ecosystem – and this is a trend that shows no signs of slowing down anytime soon.
What Is Connected TV Advertising?
Advertisers are using connected TV platforms to reach consumers on their preferred device of choice. This includes mobile phones, tablets, PCs, and even smart TVs. The key here is that the advertiser’s message is being delivered directly to the consumer via the platform they prefer. For example, if you’re watching your favourite show on Netflix, then you’ll see ads for products related to the show. If you’re watching on YouTube, then you’ll be shown advertisements from brands like Nike or Samsung.
There are two main ways that connected TV advertising works:
- On Demand: Ads are displayed when content is playing – either live or pre-recorded.
- Interruption: Ads are inserted into existing content (such as during commercial breaks).
Advertising on Connected TV Platforms
Smart TVs have become popular because they offer a wide variety of features including access to apps, voice control, and internet connectivity. These platforms allow users to watch movies, play games, stream music, and more. And while these platforms may not necessarily have built-in ad delivery systems, there are plenty of third-party solutions available.
Why Advertisers Are Investing So Much Money in Connected TV Advertising
As mentioned above, one reason why advertisers are investing so much money in connected TV advertising is due to the growing number of people who own smart TVs. According to eMarketer, the global connected TV market was worth around $21.6 billion in 2019, which represents a compound annual growth rate of 38% between 2017 and 2019. By 2021, it is estimated that the connected TV market will be worth over $30 billion.
Another reason why advertisers are investing in connected TV advertising is the fact that many viewers use multiple screens throughout the day. Smartphones, tablets, laptops, and other devices all provide different opportunities for reaching consumers. For example, some people might watch a movie on Netflix while browsing Facebook on their laptop. Others might listen to Spotify while reading news on their smartphone. Still others might check out a recipe on Pinterest while cooking dinner.
In short, connected TV advertising allows advertisers to target specific audiences at any time, regardless of where those audiences happen to be, while tools such as Finecast are perfect for analysing the results of this targeted advertising.
Connected TV advertising is a concept that shows no signs of slowing down any time soon, and it is important for businesses to have a solid understanding of the advantages and options available in order to get ahead of the game.
Also Read: 5 Effective Channels for Display Advertising