4 Reasons Why Advertisers Are Moving Their Linear Budgets to CTV

4 Reasons Why Advertisers Are Moving Their Linear Budgets to CTV

CTV viewers are more engaged than linear TV viewers, meaning they spend more time watching videos, interacting with content, and consuming all the information. 

Not only does CTV let advertisers reach audiences who are watching live, but it also offers interactivity and personalization that aren’t possible with traditional TV advertising.

This makes CTV the perfect platform for advertisers looking to maximize engagement and grow their brand awareness among consumers. There are many factors contributing to the growing popularity of CTV among advertisers, but here are four reasons why advertisers should consider increasing their investment in CTV today.

1) There’s a Huge Potential for Reach

A major advantage of using CTV is the targeting capabilities that allow advertisers to target specific demographics, interests, and households. 

It’s important to note that CTV is also cheaper (most of the time) for advertisers than linear TV. While the cost per thousand impressions (CPM) varies based on factors such as channel quality and frequency; advertisers can save quite a bit on ads when they switch from linear TV to CTV. 

For example, if an advertiser was paying $20 CPM on linear TV; they could reduce their costs to $10 by switching to a digital advertising platform like YouTube TV. 

Therefore, it makes sense for advertisers to move away from expensive linear TV and shift towards digital media, where there are more opportunities for engagement with consumers at lower costs, along with the technology to track conversions.

2) Time Spent

Advertisers are expected to move away from traditional linear TV advertising in favor of connected TV (CTV) in the next few years. There are several reasons for this shift, including that CTV offers more targeted and measurable advertising opportunities. 

Additionally, CTV platforms provide a better viewing experience for users; resulting in more people cutting the cord and ditching their cable subscriptions. 

It’s also worth noting that with the help of OTT video-on-demand services like Netflix, Hulu; Amazon Prime Video, and HBO Max, viewers can access content whenever they want without having to rely on set schedules.

Users are also more willing to sit through commercial breaks in favor of a free ad-supported streaming service; leaving the door open for more advertising opportunities.

3) Targeting Capabilities

Advertisers find that they can target consumers more accurately with CTV than with linear TV. With CTV, advertisers can target by demographics, interests, and even specific behaviors. This allows for a more customized approach to reach the right consumers with the right message.

For example, an advertiser may want to target millennials who have purchased athletic shoes in the past 12 months. They would use these criteria when looking at different content providers and find out what channels they air on and their audience makeup. 

They would then purchase advertising on those channels; and target only millennials who have purchased athletic shoes in the past 12 months. The targeting capabilities of CTV allow advertisers to be hyper-focused on the type of people they want to reach; which is impossible with traditional television advertising. 

With linear TV, you have no idea who is watching your ads because it is such a diverse group of people. In contrast, with CTV, you know what demographic or interest group your ads will be seen by and where you should place them so that it reaches the desired audience most effectively.

4) There’s Better Data, and The Cost of Viewership Is More Affordable

In an age where digital data collection is getting more accurate daily; advertisers need to consider how they measure their marketing campaigns. When it comes to CTV ads, you’ll not only know the number of impressions your ad receives; but also whether or not they pay attention to it.

This means that CTV marketers can get a clearer picture of what works and what doesn’t before implementing any changes. 

Final Thoughts

The move from linear advertising to TV marketing across connected TV; and OTT devices is happening because advertisers see the benefits of CTV advertising. These benefits include better targeting, more control, lower costs, and increased ROI. 

As more and more advertisers move their budgets to CTV, we will continue to see the growth of this industry.

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