Innovation Blog

Shift from Traditional to Connected TV (CTV)

Connected TV

With couch time hitting a record high last year (my family is no exception!), content streaming is becoming the new normal for American households. People are spending more time at home than ever before, and in a society that requires continual instant gratification, it is no surprise that nearly 88% of Americans prefer to watch content through Connected TV (CTV).

In my household, CTV is basically all that we consume. We maintain our cable subscription, but aside from sports and the occasional morning or evening news program, it’s the streaming services that get all the action. We have become accustomed to binge watching what we want, when we want it, on any device at our disposal, from almost anywhere: the couch, the patio, the treadmill, even the laundry room. Shamelessly, I will admit that during all these months indoors, I’ve been guilty of hiding in my closet and watching Netflix on my phone for a moment (or, more accurately, 30 moments) of reprieve from the family! 

So, what does this ‘new normal’ for content consumption mean for the industry? Content producers, even the traditional linear TV media giants, are shifting to Connected TV because it is where viewers are increasingly spending their time. We all know that traditional television is supported by advertising dollars, so…what now?

Looking for some answers to these exact questions, Integral Ad Science (IAS) recently conducted an online survey investigating how Americans feel about the CTV advertising experience. They found that 91% of viewers watch some form of ad-supported streaming content. Paid streaming platforms (aka subscriptions services) have been the default choice for most people, but as viewers adapt to a streaming-first viewing experience, they are becoming more cost-conscience about accruing subscription fees. Bottom line, people are willing to view more ads if it means access to more content options at a reasonable price.

Unsurprisingly, participants in the IAS survey claimed toprefer the CTV ad experience over that of the traditional TV for a variety of reasons. Skippable and short ad segments topped the list. However, participants also offered suggestions for improvements in the CTV ad experience. They recommended frequency caps, while conceding that contextually relevant ads are less likely to be skipped. Participants were even willing to share some personal information to improve the experience and make it more pertinent to their household.

So, in summary, what is good for us—the CTV viewers of the world—is also good for the advertiser. They can target, measure, and provide on-trend and relevant advertising campaigns to an audience that can also tailor its viewing experience with the same level of precision and personalization. As CTV continues to gain momentum, we can all sit back, relax, and enjoy the endless options of shows from virtually anywhere—even our closets, when necessary!

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