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Connected TV or CTV: What All You Must Know

Understanding the power of connected TV and its impact on viewers and advertisers.

Author : Murali Manohar

Date: 17 May 2024

Connected TV, or CTV, is currently the new normal. It was the year 2013 when OTT (Over the Top) content gained attention, and users were introduced to CTV, which raised the cord-cutting trend. Antenna and cable wire took a backseat when the users started to rely on an internet connection more than ever before.
In 2021, 63.9% of the US population, or 213.7 million people, used CTV or Connected TV regularly. Reports suggest that in 2025, the number will increase to 238.3 million, which shows the growing inclination towards CTV. Connected TV integrates the vast capabilities of the Internet directly with TV units. It involves smart TVs and devices like Roku, Amazon Fire Stick, and Apple TV, facilitating internet connectivity. The Internet connection offers users various online experiences, from streaming video to interactive applications on their television screens.

How Does Connected TV or CTV Work

Connected TV is a user-friendly technology that allows users to access video content through broadband internet. It replaces cable and satellite boxes with internet streaming, bridging the gap between traditional television and internet streaming. With CTV, users can access a vast library of OTT apps like Netflix or Hulu directly on their TV, making entertainment more convenient than ever.

CTV not only displays content but also leverages internet protocols to provide features such as on-demand viewing and catch-up TV. Additionally, Connected TV utilizes ad insertion techniques like Dynamic Ad Insertion (DAI) to stitch targeted ads into the content stream users seamlessly are watching.

CTV revolutionizes advertising by making ads more relevant and effective than traditional commercials. It does this by seamlessly stitching targeted ads into the content stream users watch, enhancing the viewing experience and increasing ad engagement.

OTT Trends

The Rising Popularity and Importance

The ascent of CTV has been meteoric, with more households shifting from traditional TV to connected devices. This shift is primarily driven by the desire for on-demand content and the freedom to watch what and when you want. As a result, CTV has become a central entertainment hub for many, significantly altering the advertising landscape.

And it’s not only benefiting the viewers but creating ample opportunities for advertisers by catering personalization and analytics. Let’s have a look at how CTV benefits the viewers and the advertisers simultaneously:

For Viewers:

  • Freedom and Flexibility: CTV allows viewers to watch what they want, when they want, with on-demand access.
  • Goodbye Annoying Ads: It uses targeted advertising, showing ads relevant to the viewer’s interests.
  • Content Paradise: Offers a vast library of streaming services, allowing a wider selection of shows and movies than ever before.
  • Personalized and Interactive: Flexibility to build application having interactivity use cases along with personalized recommendations
  • Enhanced Experience: Connected TV provides high-quality (up to 8K) videos and clear sound for an immersive viewing experience.


For Advertisers:

  • Reaching New Audiences: CTV targets the growing population of cord-cutters who have moved away from traditional TV.
  • Precise Targeting: Deliver laser-focused ads to specific demographics and interests, maximizing campaign effectiveness.
  • Measurable Impact: Track viewer engagement with CTV ads, allowing for data-driven campaign optimization.
  • Captive Audience: Reach viewers who are actively choosing the content they watch, leading to potentially higher ad recall and brand recognition.

CTV offers a win-win for both viewers and advertisers. It personalizes the viewing experience and provides a powerful advertising platform. So, get ready to see CTV become the new standard in how we watch and interact with television.

Conclusion

Connected TV has rapidly transformed how we consume entertainment. It’s more than just a convenient alternative to cable; it’s a paradigm shift. As the number of CTV users continues to rise, we can expect even more innovation in content creation, ad targeting strategies, and interactive experiences.

One thing is certain: CTV is here to stay and poised to become the cornerstone of future home entertainment. So, let’s not wait but connect and explore the vast possibilities that CTV offers!

Want to learn how Logituit is helping media companies deliver a seamless experience for their millions of global customers across multiple devices? Feel free to reach out to us at  [email protected]  with any queries.

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