Television advertising is undergoing a monumental shift.

In 2019, less than one-tenth of combined US linear and connected TV (CTV) ad spend was dedicated to CTV. Now, it accounts for one-third, and EMARKETER predicts CTV’s share of ad spend in the US will be nearly equal to linear TV advertising by 2028.

Despite its meteoric rise, some advertisers and agencies have yet to incorporate CTV into their multi-channel advertising strategy.

Whether you’re new to CTV or looking to level up your skills, here’s what you need to know about developing a connected TV marketing strategy that meets your goals. 

Why Invest in Connected TV Marketing
As millions of people cut ties with their cable providers, more households are turning to connected TV for streaming content. 

Roughly 88% of US households own at least one internet-connected TV device, such as an Apple TV, Roku, Amazon Fire TV Stick, or gaming console. 

Although many of them stream content through paid subscriptions to services like Netflix, Disney+, Hulu, and Peacock, free ad-supported (FAST) and ad-supported video on demand (AVOD) options are on the rise.

According to the New York Times, in the first three months of 2024, 56% of new subscribers to a streaming service chose a lower-priced ad tier. As a result, US ad-supported streaming subscriptions are predicted to grow by 82.8% in 2024, helping make CTV the fastest-growing major ad channel in the US.

As viewers continue shifting from traditional linear TV to streaming platforms, CTV advertising allows advertisers to reach engaged audiences at a lower cost than traditional linear TV advertising while future-proofing their marketing strategies.

The Elements of a CTV Marketing Strategy
Before you start selecting publishers, building creatives, and placing bids, it’s important to understand the five elements of a successful CTV marketing strategy.

 Audience Segmentation and Targeting
With traditional linear TV advertising, a network allocates certain ad breaks during scheduled programming. An advertiser then works with an agency or network to purchase ad slots during specific shows or times based on the target audiences, ratings, and overall costs.

Linear TV ads are a great option if you want to reach older demographics and don’t mind who in a household sees your ads. 

However, with its IP and device-based targeting capabilities, CTV advertising allows marketers to go super granular and leverage 1st-party and 3rd-party data to target specific users and audiences at scale. 

Unlike traditional linear TV advertising, you don’t have to guess if you’re targeting the right audience. Advertisers selectively can purchase impressions based on specific preferences, viewing habits, demographics, interests, and behaviours. This helps reduce ad spend, increase engagement, and improve overall campaign performance.

That said, it’s important to remember that, unlike display advertising, CTV doesn’t have unlimited scale. There are only so many ad spots available during a commercial break, and the more targeting you add, the smaller the pool of users you can reach realistically in a designated market area (DMA). 

If building brand awareness is a top priority, don’t be restrictive with your publisher list. Instead, spread your budget across multiple publishers to maximize your reach while still targeting the right users.

As far as I know, unlike video advertising, CTV advertising provides a more immersive and cinematic experience, check out their website. While traditional linear TV and programmatic video advertising have their advantages, CTV advertising can be viewed on larger screens, broadcast in 4K, and presented in a more casual setting, making it more appealing than traditional advertising channels.