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CTV is usurping linear TV’s crownEstimated reading time: 3 minutes

Blog

CTV is usurping linear TV’s crown

It's no surprise that TV advertising has traditionally been so successful. Offering huge reach, impact and the ability to grab attention – something hard to achieve today – it was the go-to choice for brand building. The combination of visual storytelling supported by memorable jingles resonates at that most important of levels – the emotional one.

Today, it’s a different world. The demand for attention has never been greater, and media has never been more fragmented. Attention is now divided between smart TVs, smartphones, laptops, and tablets. We’re watching streaming services, engaging in social media, instant messaging, texting, and listening to podcasts or music streams.

A declining dominance

Yes, time spent watching TV may still be relatively high compared to other media, but traditional TV faces a raft of challenges as an advertising platform.

Most significantly, it’s expensive. High production and media costs put it out of reach for many brands, bar the biggest. While it still offers reach, if you want to target, it’s not possible. And as brands seek outcomes from their advertising spend, traditional TV’s lack of a digital identifier means measurement is limited, especially when compared to video, display or social media.

Finally, it’s linear in a digital world. Evolving viewing habits mean over half of the population now watches programmes via a connected TV. But if you dig deeper and look at younger demographics, you’ll find an even greater propensity for it. Naturally, this will only increase over time as CTV becomes the norm. And for advertisers, this offers an array of opportunities.

Democratising TV advertising

Critically, it’s authenticated. This means the streaming platform – and an advertiser – knows who is watching and what they're viewing. Factor in access to additional data sources that can be brought into play, and then you can initiate greater targeting and measurement.

There’s also a wealth of choices, from smart TV platforms like Samsung or LG and the broadcasting platforms offered by ITV and Channel 4 to streaming platforms such as Disney+ or Netflix. Rather than one dominant player, there are multiple providers, and this choice results in more competitively priced media. Suddenly, smaller brands that can’t afford traditional TV advertising have access to an environment where they can run micro-campaigns on TV and target their ads to the audience they want to reach. And with authenticated identity, it’s possible to track behaviours, from when someone views a CTV ad to if they go on to buy. This can be extended further to measure customer lifetime values and understand CTV advertising’s contribution to driving this.

Take Currys, for example. By allowing Samsung to use its first-party data to reach in-market tech buyers, Samsung could integrate a CTV campaign alongside its display advertising. And the result? The addition of targeted CTV advertising saw conversions soar by 46%, and in-store sales boosted by 20%.

This combination of data, the CTV channel and precise measurement are transforming the nature and value of TV advertising, enabling brands to drive more efficient and effective media campaigns.

Watch Matt Rolfe’s presentation at eTail Spring Connect to learn how Epsilon helps brands and advertisers drive more efficient media.

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