When was the last time you turned on your television to real time shows and commercials? Today it is all about streaming, and who doesn’t love a good binge-watch?
Our TV viewing habits have completely changed thanks to Connected TV (CTV).
But this opens some really exciting opportunities for how we advertise.
CTV deserves a spot in your marketing strategy, lets go over some reasons why:
What is CTV Advertising?
First of all, CTV advertising refers to ads delivered to viewers through internet-connected devices. These can be smart TVs, streaming sticks (Roku, Chromecast), and gaming consoles.
It offers you the visual impact of television with the precise targeting of your online campaigns, bridging the gap between your TV advertising and digital marketing efforts.
The Rise of CTV: By the Numbers
CTV has grown at an explosive rate, and all signs point to even more growth in 2025.
Around 7 in 10 American consumers watch television or video content via connected TV, according to a September 2024 survey.
CTV display ad spending will reach 33.35 billion in 2025. (eMarketer)
CTV viewership has increased 54.2% over the past decade. In 2024, CTV viewership is expected to rival linear TV. (eMarketer)
By 2026, CTV will account for 20.0% of time spent with media per day by adults in the US. (eMarketer)
In the United States, adults spend an average of 2 hours and 15 minutes per day. (MNTN Research)
Why Invest in CTV Advertising in 2025?
There are several compelling reasons that make CTV advertising a worthwhile investment for your marketing strategy, beyond the impressive growth statistics.
1. Precise Targeting
Traditional TV advertising casts a wide net, CTV allows for granular targeting based on demographics, interests, viewing habits, and even location.
Imagine reaching the exact audience that is most likely to be interested in your products or services? That translates to minimized wasted ad spend and maximized ROI.
Some specific ways you can target:
New Movers: Target people who are new to your area. New movers are known for being an actionable audience with quick CTA. Make the most of this group by understanding where they are in their moving journey, whether they moved because of a growing family, empty nesting, and other rich insights.
Demographics: Target households based on factors that are relevant to what you do – specific income levels, age ranges, or perhaps those with children.
Interests: Target viewers who have shown interest in something similar to your product or service. You could also target people who follow your competition on social media.
Behavior: Target viewers who have recently visited websites, purchased, or performed a search for something that relates to what you do or sell.
Location: Focus on a specific geographic area where your ideal customer lives. This could be based on zip codes, cities, or even designated market areas (DMAs). For example, you could focus on affluent suburban households.
Content: Target viewers who are watching specific programs or channels that relate to your product or service. For example, a roofing company may choose to target people watching home improvement shows.
2. Affordability Compared to Linear TV
Budget is a big factor in deciding where to put your ad dollars, as it should be.
CTV advertising has proven to be a more cost-effective way to reach your target audience, compared to traditional linear TV advertising.
With Linear TV you’re paying to reach everyone who is watching a program, even if only a small segment of them is actually your ideal customer. This leads to wasted dollars on viewers who just aren’t interested in your product or service.
But CTV allows for precise targeting, so that you can focus your budget on showing ads to a very specific audience. Your money is going towards reaching the most likely customers, not just anyone and everyone watching TV.
You also have a more budget control because with CTV you can set daily or campaign limits, adjust them in real-time, and pause campaigns when you need to, versus Linear TV requiring upfront commitments and less flexibility to adjust your spending mid-campaign.
3. Measurable Results
Undoubtedly a key advantage of CTV is the ability to track your performance and understand where to adjust your efforts.
Here’s how:
- You can track how many times your viewers saw your ad – aka your ad’s reach and frequency.
- You can see what percentage of your ad was watched, or if they chose to skip. A low completion rate can tell you that your creative needs improvement.
- You can measure your reach and frequency, knowing how many households or individuals saw your ad and how many times each viewer saw it.
- Track your conversions, letting you know if viewers who saw your ad also visited your website, or took some other desired action.
- Gain audience insights through the characteristics of your viewers who saw your ads (demographics, interests, etc.), which can help you refine your targeting.
4. Engaging Ad Formats
You can create interactive and engaging ads that really attract the attention of your customers through CTV.
You can tell your brand’s story through longer form video. Use the opportunity to do an in-depth product demo, or to share your brand’s story and mission in a deeper way.
Viewers can learn more about a product by directly clicking on your CTV ad to visit your website. They can even purchase directly from their TV screen with a shoppable ad.
Consider including a QR code in your ad that viewers can scan with their smartphones. Have it lead them to a special offer, landing page, or even an augmented reality experience.
Through CTV you can connect your different channels of marketing, making it an experience of your brand that really engages your viewers.
5. Reach Cord-Cutters and Cord-Nevers
In 2024, 61% of Americans surveyed said they had switched from cable or satellite TV to streaming services. This is a 10% increase from 2022.
A lot of the population has either cut the cord on cable, or they never subscribed in the first place. CTV advertising allows you to reach them.
These viewers are highly engaged with streaming content and represent a valuable target audience for your business.
6. Brand Building and Storytelling
CTV ads are usually viewed on a larger screen, providing a more cinematic experience in comparison to video ads on a mobile phone or desktop. Showcase your brand’s visuals, try including product demos or new collections, and feature your customer testimonials.
How many of us have laughed out loud or even cried during a commercial? Create an emotional connection to your customers through CTV, because your viewers are typically relaxed and settled in while they stream.
Your customer who is usually scrolling or swiping through content, is leaned back and attentive – giving you a very unique opportunity to do something of impact for your brand.
Conclusion
You can’t deny the draws of this up-and-coming channel of marketing, and CTV advertising will only become more important as more households embrace streaming and on-demand.
So, are you ready to invest in CTV advertising as part of your marketing strategy in 2025?
For more information and ideas for your CTV advertising strategy, contact Welcome Wagon!
Founded in 1928 to welcome new movers to their community, Welcome Wagon is committed to connecting with new homeowners through their mailboxes and online.
