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What Is Connected TV Advertising?

The world of advertising is always changing. From the old days of radio advertising to the age of prime time TV to the current dominance of the internet and streaming media, advertisers have to quickly adapt to find their audiences. And it’s no secret that today’s audiences are moving away from traditional TV and into streaming services like Netflix, Hulu, Roku, and others.

The good news is today’s viewers are well within reach. You can decisively and effectively target audiences through the powerful new avenue of connected TV (CTV) advertising.

Mynt Agency is a technology-focused, results-oriented agency skilled at navigating the complex landscape of data-driven advertising, but with its roots in traditional radio and television, it’s uniquely poised to tap the tide of viewers gravitating towards connected TV. Schedule a call with us today to learn how we can zero in on the CTV audience that counts most for you. Call us at (888) 988-6496 or reach out to us online.

An Introduction to Connected TV Advertising

So, what exactly is connected TV advertising? To start, let’s define what a connected TV is. A connected TV is any TV capable of connecting to the internet to reach streaming services. This can be accomplished via smart TVs like the ones made by Sony, LG, Samsung, Vizio, and others – most modern TV manufacturers are producing smart TVs. Smart TVs are defined by a built-in capacity to connect to the web through Ethernet or Wi-Fi.

But that’s not the only way for a TV to connect to the web. People also use devices like a Roku, Amazon fire stick, or gaming devices like PlayStation and Xbox to connect to streaming providers.

Streaming services like Netflix, Hulu, and Amazon Prime Video are known as Over-The-Top (OTT) platforms. OTT platforms have quickly dominated the entertainment industry. In fact, in 2019, the number of people who pay for streaming services surpassed the number of subscribers of traditional cable services.

Other OTT platforms and devices include:

  • Sling TV
  • Apple TV
  • HBO Now
  • YouTube/YouTube Premium
  • Google Chromecast
  • Peacock (NBC Universal)


What Are Connected TV Ads and How Do They Differ From Regular TV Ads?

Generally speaking, connected TV ads appear through OTT platforms, smart TVs, mobile devices (smartphones and tablets such as iPads, for example), and devices such as Roku sticks and gaming platforms that allow TVs to connect to streaming services. But, let’s define it a little more specifically.

In traditional TV advertising, ads are shown in commercial breaks. There are roughly eight minutes of ads during half-hour shows and 16 minutes of ads during hour-long shows. There are many ads shown, and they are targeted to broad demographics.

Connected TV ads, by contrast, are shown in shorter segments – typically 15 to 30 seconds – and are more precisely targeted to specific audiences. Ad breaks on streaming services are a lot shorter. Hulu, for example, limits ad breaks to 90 seconds. These ads are often un-skippable, and because there are fewer ads shown at a time, they stand out more. Moreover, users are less likely to skip ads that are skippable because of the short time frame. Connected TV ads live up to the mantra of “less is more.”

Streaming Versus Cable TV

You may have heard reports of the accelerating decline of the number of cable TV subscribers. Cable TV is losing its subscribers to streaming services and OTT platforms.  In 2018, 74% of Americans were subscribed to on-demand streaming services compared to 52% in 2015. So, in just three years, the number of streaming and video-on-demand subscribers rose by 24%. In contrast, traditional cable TV companies, like Comcast, are losing an average of 7% of viewers per year.

Streaming services are also a clear favorite among younger viewers. In one study, 72% of millennials watch free streaming services, such as Hulu’s free service and YouTube. These free services fund themselves on advertising revenue, so they provide a prime spot for your advertising campaign. In Hulu’s case, in addition to a free option, they also have a lower-priced subscription plan that also shows ads.

How Connected TV Advertising Works

Connected TV advertising works on an auction system. In theory, this auction system is similar to how other CPC advertising works. You decide the budget, the target audience, and the platforms you would like to target. If you’ve used a CPC platform like Google AdWords, you may be familiar with the basic idea. Advertisers place bids on advertising spots, with the winning bid earning the impression (an impression is when your ad is shown.)

However, unlike other CPC platforms, which exist in an open market where anyone with a budget can bid, the connected TV Advertising auction operates in what’s called a programmatic private marketplace. This private marketplace (PMP) is a closed market in which the ad publisher controls who gets to advertise on their platforms, and who gets access to their ad inventory. PMPs are used by streaming giants like Hulu. In order to get your ad shown to Hulu viewers, you must be invited and approved to participate in their marketplace.

This is where an advertising agency can be invaluable. Mynt Agency is an approved ad buyer with access to PMPs. Of course, having access doesn’t mean you’ll be automatically successful. It’s true that PMPs have higher win rates and are more cost-effective, but remember that the auction system is performance-based. This means that ads that are more specifically targeted and have better performance metrics are more likely to win that ad space that plays during a viewer’s binge-watching of The Office.

The Accelerating Growth of Connected TV and OTT Platform Advertising

Connected TV advertising and advertising on OTT platforms is a relatively new field. But while new, it is rapidly growing and becoming a major factor in the world of digital advertising. The amount of money spent on CTV advertising hit almost $7 billion in 2019, and it’s expected to hit $14 billion by 2023. The reason for this growth? Businesses are following the viewers and recognizing the increasing dominance of connected TVs. According to Nielsen, 68% of US households have a connected TV device.

The ubiquity of connected TV and OTT is even more prevalent among younger demographics, like millennials, who currently make up the largest demographic in terms of population size. For example, during the third quarter of 2018, 18-34-year-olds only spent 22% of their content consumption time on live or time-shifted TV. For 35-49-year-olds, that number was only 34%. For both of their age groups, the majority of their content consumption time was spent on a combination of the internet via computer, smartphone, or tablet, and connected TVs.

Connected TV Advertising Is Data-Driven and Measurable

Similar to other digital advertising methods, connected TV is data-driven and allows you to measure your results. Here at Mynt Agency, we use a variety of measurements to optimize our connected TV advertising strategy. Our measurement data includes:

  • Impressions: One of the basic measurements: how many times your ad is shown.
  • Click-Through Rate (CTR): For content viewed on computers, laptops, and mobile devices: how many people clicked on your ad to be taken to your website or landing page.
  • Cost Per Mile (CPM): Also known as Cost Per Thousand, this measurement tells you the cost of your ad per 1,000 impressions.
  • Win Rate: Connected TV advertising works on an auction system. Win rate is the percentage of bids made over impressions won.
  • Video Completion Rate: This measures how many videos are played through to the end without being skipped.
  • Cross-Device Attribution: Tracks how a user interacts with your ad campaign across various devices.

Schedule a call with us to find out more about these and other metrics we use.

Connected TV Advertising Strategies

Connected TV advertising gives you a wide range of advertising strategies to deploy. Following are a few examples of connected TV advertising strategies:

  • Data Targeting: This method is aimed at attracting new customers. Ads are displayed to customers based on key data points about them, such as demographics, purchasing habits, and interests.
  • Retargeting: Did a customer visit your site then leave without making a purchase? Retargeting enables you to re-display appropriates ads to those visitors as they browse the web in order to reengage them.
  • Cross-Device: Today’s viewers use a variety of different devices to view content, browse the web, and make purchases. Cross-device targeting allows you to reach your audience across these different devices.
  • IP Address/Geo Location targeting: Target specific customers in specific areas.
  • Contextual Key Word targeting: Use researched keyword lists to reach target customers when they access content through specified keywords or keyword phrases.

And more: There are many other advertising strategies Mynt Agency uses, as well. These strategies help us target the audience you need to reach and help you get the most out of your advertising budget.

Get Started with OTT and Connected TV Advertising

If you currently do not have CTV or OTT advertising as part of your marketing strategy, your ads are missing from the most rapidly growing media platforms on the market. To find out more about CTV advertising and to learn more about how we’ll tailor a strategic approach to your unique needs, call us at (888) 988-6496 or contact us online. We’re excited to help our clients reap the benefits of CTV advertising.

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