What is CTV?
Connected TV (CTV) marks an innovative era in the digital advertising landscape, offering a seamless fusion of traditional television and internet functionality. It encompasses any television that can be connected to the internet to access content beyond what is available via the normal broadcasting system. This includes not only Smart TVs from manufacturers such as Samsung, Vizio, and LG, which come equipped with built-in internet connectivity, but also conventional TVs that have been ‘connected’ via peripheral devices such as Apple TV, Chromecast, Fire TV, or Roku.
These additional devices bridge the gap between the internet and the TV screen, using wifi connections to transmit content from the web to the television. The content arrives at the TV via Over-the-Top (OTT) services, essentially bypassing the traditional broadcast networks and cable providers. Similar to the mobile environment, these OTT services operate through apps installed on the connected TV device, providing a broad array of video content that can be streamed on demand.
CTV platforms offer viewers unprecedented flexibility in terms of what they watch and when. At the same time, they open up new opportunities for advertisers to reach their target audiences. As a key component of programmatic advertising, CTV allows for the delivery of personalized, targeted ads to individual households. This specificity is made possible through advanced targeting capabilities based on user data, a feature that traditional TV advertising lacks.
Furthermore, CTV advertising operates on a real-time bidding basis, meaning advertisers bid programmatically for the available ad space in real time. This ensures that the most relevant ad is served to the viewer at the optimal time, maximizing both viewer relevance and advertiser return on investment.
In summary, CTV combines the best of traditional television and digital advertising. It provides a platform for advertisers to deliver personalized, contextually relevant ads to a targeted audience, while also offering viewers a wider array of content options that can be accessed whenever they choose. It’s an exciting development that’s set to shape the future of the advertising industry.
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