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Connected TV is the Future of Programmatic Advertising


It is quite likely that you have already heard the term “Connected TV”. It is the latest buzzword in the entertainment and technology circles. In spite of this, it is surrounded by a lot of confusion and many are still seeking clarity on this subject. If you too are looking for answers on the same, then you are on the right page! We are going to demystify it for you, right here.
“Connected TV” is an umbrella term. A device that helps connect a TV to the internet comes under “Connected TV”. This can include devices like set-top boxes, OTT (over-the-top) devices, Smart TVs, gaming consoles like Playstation and Xbox, as well as streaming devices like AppleTV, Google Chromecast and Roku. It can be either a TV with in-built internet capabilities or a TV connected to a device having an internet connection.

The main advantage of Connected TV is its ability to combine a strong impact and the wide reach of TV, along with the variety of online content. If this is combined with advanced techniques like programmatic advertising, it can also provide high-precision targeting capabilities of digital. Connected TV empowers advertisers with one remarkable asset i.e. data. And, that’s just the beginning. It brings with it a cascade of benefits. You must have heard the new adage – data is the new oil. Well, that’s true. And connected TV helps meld the power of data with the popularity of TV. This combination has the potential of giving wonderful results.

Amidst the current COVID-19 lockdown, CTV and streaming boxes and sticks make up 56% of to-date OTT streaming hours in March and connected TVs account for 32%. When comparing the four most recent days of available data, this growth is even more pronounced vs. the same days in 2019. This trend is gradually being replicated globally. This is an amazing opportunity for advertisers to get detailed insights on their customers. CTV helps them improve their targeting by better implementing their cross-channel targeting strategies.

CTV helps brands reduce the ad fatigue people are currently experiencing by providing better user experience. It delivers highly personalized high-quality ads in a stereo sound environment with a full-screen HD viewing experience. CTV is also known to deliver high completion rates and longer view periods by offering a classic TV experience. In addition, brands can also explore a wide range of ads like interactive ads and banner ads.

Programmatic increases the efficiency of the advertising campaigns on CTV, as compared to traditional TV advertising. This is because CTV buys are mostly based on targeting only the desired audience. The type of audience viewing the ad determines the level of relevance of that ad and hence, the ROI of the advertising campaign. CTV advertising being more targeted as compared to linear TV reaches the right audience at the right time and yields a better ROI.

As the ads are bought and sold digitally, it is possible to digitally track the performance metrics like the completion rates and generate reports to gauge the overall campaign performance. A recent report by FreeWheel (part of Comcast’s advertising solutions teams) found that OTT television viewers complete 98% of the video ads, on an average. This is much higher as compared to the completion rates of instream and outstream video ads.

Connected TV is an emerging medium for advertisers. This is well illustrated through the eMarketer forecast which states that in 2022, the number of connected TV users will rise to 204.1 million, up from 182.6 million people in 2018. This is no surprise, considering the slew of benefits CTV brings along with it. As consumers are making the transition from linear TV to CTV, advertisers too are bound to follow.