How Does Connected TV Advertising Work

Connected TV advertising delivers video adverts to television screens that receive content through an internet connection. This includes smart TVs and televisions connected through devices such as streaming players, games consoles and internet enabled set top boxes.

For advertisers, Connected TV combines large screen video advertising with digital capabilities such as audience targeting, impression based buying and campaign measurement. Ads can appear within eligible streaming, live and video on demand content, depending on the platform and available advertising inventory.

As audiences consume television and video content across a wider range of streaming environments, Connected TV is becoming an increasingly relevant part of TV advertising planning.

Connected TV Ad Delivery

CTV advertising begins when video creative is made available through an eligible broadcaster, streaming service, advertising platform.

When someone watches ad supported content, advertising opportunities become available within that viewing session. Campaign settings can then help determine which eligible advert is delivered.

These settings can include factors such as audience criteria, campaign budget, location, frequency controls and available inventory.

CTV adverts can appear in several positions within content, including:

  • Pre roll ads before content begins

  • Mid roll ads during advertising breaks

  • Post roll ads after content

  • Advertising within eligible live streamed content

The exact placement depends on the streaming service, programme and available inventory.

Audience Targeting

Audience targeting is one of the key capabilities available within Connected TV advertising.

Depending on the platform and available data, advertisers may be able to plan campaigns around factors such as:

  • Location

  • Demographic characteristics

  • Interests

  • Viewing behaviour

  • Content categories

  • Defined audience segments

  • First party advertiser data where supported

This gives brands the ability to shape campaigns around the audiences relevant to their objectives.

Targeting should still allow enough audience scale for the campaign to perform effectively. Building an extremely narrow audience can restrict the number of eligible viewers available to reach.

A clear understanding of the intended customer should therefore come before selecting targeting criteria.

Connected TV Media Buying

CTV advertising inventory can be accessed through several buying arrangements, depending on the broadcaster, streaming platform and media partner.

Campaigns may be purchased directly or through technology platforms that automate parts of the media buying and delivery process.

Programmatic buying can be used across eligible Connected TV inventory to manage campaign delivery according to predefined criteria. Advertisers can establish factors such as budget, audience, geography and frequency before the campaign runs.

Some inventory may also be available through controlled marketplaces where publishers determine which advertisers can access advertising opportunities.

The appropriate buying method depends on the campaign objectives, available inventory, target audience and budget.

Dynamic Ad Insertion

Dynamic ad insertion enables eligible adverts to be inserted into streaming and on demand video content according to campaign delivery rules.

This technology can allow different advertising creative to appear for different audiences or circumstances.

For example, a national retailer could use location specific creative where the platform supports geographic targeting. Brands could also prepare several versions of an advert for different audience segments.

The creative still needs to work effectively on a television screen. Clear branding, strong video production and a focused message remain important when planning a CTV campaign.

Connected TV Advertising Platforms

CTV advertising can appear across a range of ad supported streaming, broadcaster and video on demand environments.

The specific inventory available depends on the campaign, platform and media buying arrangements.

Media Agency Group's TV advertising offering includes opportunities across television and video on demand environments, allowing campaigns to be planned around different audiences and viewing habits.

Platform selection should be based on where the intended audience watches content and how each environment supports the wider campaign objective.

Connected TV Campaign Measurement

Connected TV provides advertisers with several ways to assess campaign delivery and performance.

Depending on the platform and campaign setup, measurements can include:

  • Impressions

  • Reach

  • Frequency

  • Completed video views

  • Video completion rates

  • Audience delivery

  • Geographic delivery

  • Website activity

  • Brand studies

  • Relevant conversion activity

The metrics selected should reflect what the campaign is intended to achieve.

A brand awareness campaign may focus on reach, frequency and completed video views. Campaigns designed to encourage further action may also consider website visits, branded searches, enquiries or conversions where suitable measurement is available.

Frequency is particularly important. Advertisers should consider how often the same household or viewer could encounter the campaign and apply suitable controls where available.

Benefits of Connected TV Advertising

Connected TV gives advertisers several useful capabilities within a television viewing environment.

These can include:

  • Large screen video advertising

  • Audience led targeting

  • Geographic targeting where supported

  • Impression based media buying

  • Access to streaming audiences

  • Multiple creative executions

  • Frequency management

  • Campaign reporting

These capabilities make CTV suitable for campaigns focused on brand awareness as well as campaigns that require more defined audience delivery.

The value of each capability depends on the campaign. Audience, objectives, available inventory and creative requirements should determine how CTV is used.

Connected TV Within a Wider Media Campaign

Connected TV can form part of a wider television, video and digital advertising strategy.

Brands can use CTV to reach audiences consuming streaming content through connected televisions while coordinating the same campaign across other relevant media.

For example, consistent creative can run across CTV and other TV advertising activity, with search, social media and digital advertising supporting further audience interactions.

Planning should begin with where the intended audience consumes content, how frequently the campaign needs to reach them and which media environments are relevant to the objective.

This helps give CTV a defined role within the wider media plan.

Making Connected TV Part of Your Media Strategy

Connected TV advertising works by delivering video adverts through internet connected television environments, with campaign settings helping determine which eligible audiences receive the advertising.

Audience targeting, programmatic buying, dynamic ad insertion and campaign measurement give advertisers greater control over how CTV activity is planned and delivered. The right approach depends on the audience, campaign objective, available platforms and creative strategy.

Planning a Connected TV campaign? Get in touch with us to discuss Connected TV, video on demand and wider television advertising opportunities for your campaign. 

Aneesa Umber