Connected TV advertising has become a prime tenet of marketing for big brands, but for relatively small businesses and brands, the domain of CTV ads still remains untapped.
Now, with increasing technological developments, it’s time for small businesses to get ahead in the game of CTV advertising. So if you are a SME and unsure of what this new advertising can do for your brand, we are here to tell you the benefits that CTV ads have in store.
On a global scale, CTV viewership has increased by 81% and although India is still a young market for these ads, it is steadily growing and has become a booming space for potential CTV consumers. On April 20, 21% of CTV viewers were cord-cutters, whereas 22% were cord nevers. According to the Indian CTV report 2021, CTV viewing has significantly increased by 31%. According to the Indian CTV survey, 78% of people own CTV and 93% of them have internet access.
What’s stopping SMEs from using CTV advertising?
Misconception regarding Budget
CTV is a potentially new market, which is why many brands and smaller businesses with less marketing budget might be reluctant to try CTV ads. There is a common misconception that advertising in CTV could exceed their allotted ad budget, and so SMEs don’t consider it worth the risk.
According to the FICCI-EY report by 2025 Connected TV is expected to reach 40 million viewers, so it is time that SMEs look into this option and broaden their reach. As per Gee Ranasinha, the CEO of KEXINO, for a small market agency, the real cost lies in the creativity for entering into the streaming market. He adds the real cost is in the ideation, if your SME invests in execution values and in-house talent one will find their way into the CTV ad platform too.
From a general perspective, SME owners feel that CTV advertising will go beyond their budget, but on actually scratching the surface of the expenses involved, you will feel it is right up your alley in terms of budget.
The battle of CTV versus linear TV advertising for SMEs
According to several advertising experts, a brand can advertise on both linear TV and CTV as both of these target different segments of the audience.
The business or advertiser can segregate as to what to advertise where and when. There are brands that prefer to run their traditional TV ads during a certain time, genre, or program depending on their target audience. The same brand can advertise on CTV to reach a different set of audience for their premium products or services.
In the end, it all comes down to better targeting
The primary objective of advertising is targeting the right viewers, in the right place at the right time. CTV is just more detailed when it comes to targeting as you would know the number of people streaming, their interests and age group. Advertising on CTV will hence allow SMEs to narrow down where they spend their money, both in terms of geography and demographics. A classic example of going smart work rather than hard.
The targeting capabilities of CTV advertising is why more small brands should consider it in their marketing plan,especially right now when it’s young and heavy in potential. You would know that the ads are reaching your consumers and that assurance is something every advertiser and business owner strives for.
One of the things that SMEs may find attractive is the ability of CTV ads to deliver content that is specific to one particular geographic region. There are streaming channels that are beneficial to one size of the audience, hence every penny spent on CTV ads is worth it as you know that your ads are reaching your target audience.
While linear TV does have a wide reach and is extremely effective for advertising, however, CTV gives you a level of control. You can control the expense and who you want your ad to be catered to.
Traditional TV ads do offer a considerable amount of reach, but CTV is gaining huge popularity in India as more and more urban and young audiences are engaging in OTT content. As per Counterpoint Research, there was a 65% increase in India’s smart TV market in the second quarter of 2021, due to an increase in demand.
Why CTV ads and SMEs are a match made in heaven
Once you go CTV, you can never go back
We cannot emphasize more on the fact that CTV is everywhere. Internet giants like Amazon, Netflix, and Sony LIV are producing their own content and the convenience and fear of missing out on any new show are attracting more and more customers to join the platforms. With internet consumption in India being boosted by the pandemic, the time is ripe for video advertising as households are quickly adopting CTV technology.
Cater to a young audience: CTV is clearly the future of video ads because of the young, tech savvy audience. Gen Z and millennials love the content that is available on Amazon, Netflix, Disney+Hotstar, etc, and now even YouTube is allowing the purchase of episodes. Most millennials now do not feel the necessity to get a conventional television package. In fact, the young audience is inclined towards CTV only, as 67% are more likely to be in a connected Tv house only and 25% say that they won’t need a pay-TV (Source: 10th Degree).
More Video ads with CTV: The CTV inventory available is less now, and most of it gets snapped quickly, but this is not a disadvantage for advertisers. The growth of CTV is massive and is creating a great opportunity for video ads.
Drive More Sales With CTV Ads: As per Business Wire 2021 Report, it is found that CTV ads help to drive sales. Here are some facts that you may want to know:
- CTV provides easy access to ads and purchasing options. More than 60% of consumers use their mobile devices to shop while CTV streaming. (Source: Business Wire Report)
- The customers are aware that watching ads is a cost that they pay for a convenient and excellent viewing experience. Hence, ads do not bother them.
- The ability to target the audience based on the data these apps provide is much higher in CTV. This can provide the advertiser with a much higher ROI than traditional TV advertising.
The one feature that sets Connected TV ads apart is the ability to incorporate advertisements directly into streaming apps. Businesses who want to drive maximum profit can benefit from targeting the right audience that matches their ideal customer base and converting ad viewing into immediate sales. Particularly, sales-driven brands and retail brands can benefit from CTV ads.
To summarize, CTV advertising is a lot more than expanding your ad reach; it has the potential to allow SMEs to expand their reach and target the exact consumers they want. All that SMEs need is a strategic plan for optimizing their ideas and marketing techniques to choose the right type of CTV ads.
We hope this article is useful for advertisers and brands. We would love to know your feedback. In case of any comments and queries, you can write to us at Help@TheMediaAnt.com.