When was the last time you watched basic cable? If you're anything like us, you likely have a subscription (or share a login) to a streaming service. The most popular TV shows are on streaming services, allowing viewers to watch their favorite shows on a whim at their leisure. The domination of streaming services is precisely why connected TV is the future of shows and paid advertising.

And no, we won't tell you which streaming platform to use on your smart TV; that's a different article.

Instead, it's good to get back to basics: what is connected TV? And why is it important?

What Is Connected TV?

A connected TV (CTV), or smart TV, is television that connects to the Internet. This Internet connection allows consumers to stream and view content across multiple platforms, like consoles. We recently went over blended in-game ads and how seamlessly they fit into some of the most popular video games on the market.

CTVs allows you to watch the latest episode of House Of The Dragon or the newest season of Stranger Things. CTV also enables you to stream video, music, and games.

We can spend hours arguing over which is the better show with different viewer statistics.

But the critical thing to focus on is how many viewers use streaming platforms. And how those numbers spell out success for brands, ad campaigns, and advertisers.

Let's include some generation-by-generation statistics to illustrate the enormous reach of digital media to millions of households in America.

CTV Reach By Generation: Who's Watching?

Perhaps it’s little wonder millennials, and Gen Z is the age demographics dominating the CTV market. Estimates show that by 2025 there will be:

• 62.5 million millennial users
• 56.1 million Gen Z users
• 50.5 million Gen X users
• 31.6 million Baby Boomer users

Over five years (2020-2025), Baby Boomers will decrease their CTV use, while the other demographics will steadily increase. But why? All data tells a story; marketers need to cling to that raw consumer data to help define their targeted advertising.

This rise in viewership signals a significant shift in pop culture and ad campaigns.

Connected TV Vs. Over The Top (OTT)

Curious readers looking for the best connected TVs will likely see the acronym OTT, meaning 'over the top.' Over the top, in this context, refers to streaming services like Spotify, Hulu, and Netflix.

CTV is the conduit for delivering OTT content to viewers.

Audiences use CTV platforms to receive OTT content. It doesn't matter if it's a desktop computer, tablet, or smartphone; as long as it's connected to the Internet, it's a CTV device.

Connected TV Advertising

How do advertisers capitalize on these numbers? How can marketers and advertisers reach their audiences? CTV makes advertising reasonably straightforward.

Remember Your Audience!

Before you start making big choices, remember to whom you're advertising. Are they millennials looking for car insurance? Or are they baby boomers on the lookout for a new

That's where the significance of your platform comes into play.

Choose The Platform

Put your favorites and biases aside for a second. While Hulu may be your preferred streaming platform, does it gel with your target audience and advertising goals? Learn which platform serves which demographic when advertising with CTV. Here are some excellent examples of popular CTV platforms to deliver your brand's message.

YouTube

While you have your favorite advertising avenues out there, sometimes good YouTube video ads make a huge difference. Since 2005, YouTube has been a tour de force for digital creators, advertisers, and marketers.

Advertising on YouTube is just an overall good idea. We've previously gone over the brilliance and effectiveness of YouTube Ads. In short, a few different types of video ads can be taken advantage of.

For example, there are bumper ads; seconds-long ads shown right before a video. Likewise, there are pre-rolls, which can play before or during the video. These ads usually last around 15 seconds.

To sum up, YouTube ads open many doors for reaching your target audience.

TikTok

If you've been browsing TikTok, you'll see how seamlessly ads can make their way into your feed.

For advertisers, this endless scrolling is a big win for campaigns. Many small and large businesses find immense success with advertising on TikTok.

Whether a Fortune 500 company or a local e-commerce business, this social media giant gives you unfettered access to multiple demographics.

Choose The Ad Type

There are, luckily for advertisers, multiple options to show products and services to target audiences.

Video Ads

These ads play before or during videos, shows, or movies. Video ads aren't too long, so they don't dominate a viewer's time, all while pushing a message. It's a great way to pull in viewers.

Interactive Ads

Interactive advertising is just that: ads that have viewers interact with content. You can give viewers choices. Do you want an advertisement for a new car or vacation resort?

Display Ads

These advertisements are usually images that show up near a video. It could be an image advertising a product or service. There's no abrupt interruption of content viewing, allowing people to take in what your ad is pushing.

Should I Use A Connected TV?

Yes. If you're a marketing professional, launching ad campaigns on CTV is a great way to access your audience in different ways.

For more digital marketing tips and how to build your brand, drop Sprinkles Media a line! We'll go over your business goals, how you plan to reach your audience, and help you grow your brand from the ground up.