The average connected TV viewer consumes ads without questioning how those brief commercials were made for good reason: what is out of sight is out of mind. CTV viewers do not see the who, what, where and why of CTV ads so they are unlikely to explore their intellectual curiosity in regard to the process necessary to create such video content. Below, we demystify CTV ads to shed light on how the metaphorical sausage is made.
CTV Ad Basics
Before we delve into the nitty gritty of CTV ads, let’s take a brief moment to define connected TV advertising. CTV advertisements are transmitted through CTV platforms such as video game consoles, Amazon’s popular Fire Stick, Roku and a litany of video streaming services.
CTV advertisements are sold in the form of impressions, meaning businesses place bids on target audience viewers, streaming video content directly into homes and other buildings across the globe. The advertisement spot is secured when the viewer fits the customer persona targeted by the business. The creative advertisement is then presented in video form and consumed by the viewing audience, setting the stage for the conversion of prospects into paying customers.
The Nuts And Bolts Of Connected TV Ads
The creation of a CTV ad is similar to that of a traditional commercial aired on cable TV. Furthermore, airing a CTV ad is also fairly similar to airing video ads on cable TV and other paid advertising mediums such as YouTube, Netflix, etc. Businesses work through advertising networks to generate video advertisements then transition to attempting to outbid the competition to obtain coveted advertising positions for exposure to a target audience.
CTV ads are slightly different from conventional ads in that they are a type of programmatic marketing, meaning there is stiff competition for advertising space. Businesses that invest the resources necessary to create high-quality video ads and then follow up with strategic bids obtain critically important access to target content, time slots and audiences. Furthermore, programmatic ads are also beneficial in that they empower businesses to zero in on target audiences in terms of specific demographic such as audience location, age, interests, etc.
The most successful CTV ads are carefully optimized to access and engage the target audience. Though a specific ad might not fare as well as the business desires, an alternate variation of the commercial or a completely new version can be created to air at a later date.
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A Brief Look At Connected TV Insertion Orders
Industry insiders are familiar with the term “connected TV insertion orders,” yet outsiders are understandably unaware as to what this string of words means. TV insertion orders are best described as a highly efficient streamlining of workflow geared toward the purchase of digital TV ad space spanning a litany of screens.
Insertion order types highlight options that are relevant to ads aired on TV with optimized configurations chosen for line items referred to as over-the-top. Business owners, managers and advertising specialists are encouraged to compare and contrast insertion orders for over-the-top streaming with connected TV, juxtaposing both with real-time bid insertions for analytical purposes. Insertion orders are further defined by details ranging from budgetary information to beginning/end dates, pace of airing and more.
Connected TV advertising has rapidly advanced in recent years. It is now possible to select the optimization settings and performance goals of:
- Insertion orders
- Frequency cap
- Inventory sources for purchase
Additional video content nuances can be optimized for fully customized connected TV ads tailored to strategically heighten engagement with a target audience. Those who invest the effort necessary to maximize engagement through carefully optimized connected TV ads will reap the benefits in the form of ongoing conversions.
Connected TV Ads And Regular Commercials Are Not The Same
Connected TV ads resemble traditional TV ads, yet the two are not completely the same. Creating an ad that airs on connected TV and conventional cable TV requires a similar planning process characterized by storyboards, filming and editing. But, the similarities end there. The manner in which connected TV ads are purchased, sold and placed is drastically different from the process required for traditional TV.
Businesses buy commercial spots at specific times on specific channels as occurs with conventional advertising. Companies select advertisement buys in accordance with the viewing audience’s makeup and magnitude.
In contrast, connected TV commercial purchases are not fully determined by channels and/or air times. Rather, connected TV advertisements are transmitted one-by-one in accordance with the viewers tuning into a program. In summary, it is in the interest of every business to tailor Connected TV ads to their narrow target persona. Connected TV ads are a golden opportunity to connect with target customers based on both demographics and consumer behavior, ultimately creating a mutually beneficial relationship.
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