Cable Cutting: What is Connected TV and Why Should You Use It?

By Melissa Palermo

The rumours are true, cord cutters have been slowly changing the game of traditional media consumption as we know it. The trend of “cord cutting” or “unplugging” continues to gain momentum as more individuals opt for alternative entertainment options, signalling a significant decline in what is now considered to be a thing of the past – cable TV usage. So the big question is: where do we go to reach this declining audience? 

With the rapid increase of streaming services offering a more diverse array of content at the viewer’s convenience, consumers are increasingly drawn towards customizable, on-demand viewing experiences – and where they go, advertisers will need to follow. 

This shift reflects not only changing consumer preferences but also the evolving landscape of media consumption as a whole, where flexibility and choice reign supreme over traditional bundled cable packages. This is not just a trend, but an indication of the improved future of the television landscape. As a result, advertisers and marketers alike are looking to streaming audiences to bridge the gap between brands and the cord cutters – otherwise known as Connected TV (CTV) advertising.

 

The Benefits of CTV 

If you know, you know, linear television has a long standing reputation for being hard to measure while wasting valuable impressions on broad audiences. With Connected TV, marketers are no longer stuck having to choose just one channel or platform – they are able to accurately pinpoint audiences and follow them on their journey using cross-device reach. 

In the wake of a Cookieless Future, CTV advertising stands out as a compelling solution, offering never before seen precision, engagement, and measurement capabilities – all while being entirely cookieless. 

CTV advertising breaks the mould of traditional metrics, offering sophisticated ways to measure actual outcomes that directly impact consumer behaviour​​. Advanced targeting on high impact screens also means an incredibly engaged set of eyes on brands choosing to advertise on this platform. 

Additionally, CTV provides new and engaging ways for brands to interact directly with their audiences through shoppable ads and QR codes directly on their television screen. These unique tactics offer new avenues for engagement and conversion​​. Across the board, we are seeing the future of technology and how it will impact advertising – and brands want to be a part of these innovations to stay top of mind.  

 

Challenges of CTV 

Like all things, Connected TV is not without its challenges. It is important to understand the wins, as well as the necessary precautions of this channel.

The biggest challenge for CTV is the unpredictability of viewership which leads to the cautious approach of sellers. The result being underselling, affecting the delivery of campaigns, especially in time-sensitive situations. Unlike traditional television, it’s impossible to fully comprehend the space needed for a specific show at a specific time. Especially as this platform is in its growth phase and constantly being improved upon.

Frequency capping is another challenge worth noting. While some platforms implement a standard three times per hour frequency cap, there is still a risk of overexposure that can lead to viewer fatigue. Users on streaming platforms are hit with constant pop ups, unskippable ads, and changing browsing layouts, making it a sometimes frustrating experience to browse for television and movies. When a brand is the face of that frustration, an ad can cause the opposite effect on consumers. Striking a balance between visibility and avoiding creative fatigue becomes crucial for effective advertising on Connected TV. The solution to this issue is a balanced media buy. 

As we look towards the future, the importance of CTV advertising in the digital ecosystem is undeniable – this is more than a trend, this is a turning point for advertising as we know it. CTV represents a significant opportunity for advertisers to prove that they are ahead of the curve. While traditional television may be on its way out, the opportunities surrounding television are growing exponentially. Embracing these changes is the key to showcasing your agency as disruptors of the status quo and unafraid of traversing new territory. 

At Tug, we have explored and seen great success testing CTV while it was in its infancy. Proving to be a key solution to raising awareness on a budget. Get in touch to find out more.