The rise of digital marketing channels has taken the spotlight away from traditional TV advertising. But with digital marketing becoming a mainstay, the internet is being flooded by a cornucopia of branded advertising campaigns. It has compelled marketers to look for additional avenues in digital marketing.
That’s where connected TV (CTV) advertising steps into the picture. As the internet gets more chaotic, marketers are increasingly shifting focus to CTV advertising. It offers a great way to connect with target consumers via their television sets. The growing rise of the cord-cutting phenomenon is further propelling this shift in advertising.
Connected TV Advertising: A Brief Overview
When brands advertise on connected TV, it helps them harness the combined benefits of digital video marketing and traditional advertising. CTV advertising helps you reach potential customers in their living rooms in the same way as traditional TV commercials. However, it blends that with the precise targeting and monitoring features of video marketing.
Understanding the Shift from Traditional TV Advertising
The rise of CTV advertising can be attributed to the increased adoption of OTT platforms and smart TVs. A diverse assortment of high-quality on-demand content combined with cross-device accessibility makes OTT streaming ideal for this new generation of viewers.
Between 2014 and 2021, the number of cord-cutters in the U.S. has more than tripled. Traditional pay-TV operators dropped nearly 1.6 million subscribers in the first quarter of 2021.
As more households pull the plug on cable and satellite TV, the smart TV market is witnessing a massive surge in demand. According to Mordor Intelligence, the connected TV market is expected to grow at a CAGR of 15.53% between 2021 and 2026.
This emphasizes the need for brands to shift focus from advertising on traditional TV.
More marketers are jumping on the CTV advertising bandwagon than ever before. In fact, connected TV ad spending is projected to cross $27 billion by 2027 up from $13.4 billion in 2021. A recent survey by Innovid and Digiday also reveals that 83% of respondents are already using social media campaigns alongside CTV ad campaigns.
But why should you opt for CTV advertising? Read on to find out.
Connected TV Advertising: Exploring Key Benefits
The most obvious benefits of connected TV advertising include amplified reach and brand awareness, as well as strengthened brand reputation and credibility. However, unlike traditional pay-TV, interactive CTV ads can also help you establish direct lines of communication with target consumers.
A study from 2020 shows that interactive CTV ads help marketers achieve a 237% jump in time spent with viewers for 30-second ads. Moreover, for a 15-second ad, you get a 447% increase in total time with a viewer.
Interactive CTV ad campaigns also deliver an average engagement rate of:
- 0.23% for 15-second spots
- 0.41% for 30-second spots
The best part is that these campaigns help marketers get a direct response from their audience. Also, with many viewers using their smartphones or tablets as a second screen, you get opportunities to further boost reach and engagement.
The above study also reveals that 4% of consumers shared their phone number to receive updates from an advertiser after viewing a CTV ad. That translates to instant lead generation for advertisers.
Additionally, the Innovid-Digiday survey indicates that connected TV advertising has helped the 49% of respondents to increase brand engagement.
Apart from amplifying engagement, CTV advertising also helps drive conversions. The survey also found that more than 25% of marketers believe advertising on connected TV has helped them achieve higher conversion rates.
That’s understandable because CTV advertising lets marketers precisely define their target audience based on purchase history and online activity. They can even retarget website visitors and existing customers to drive more conversions and skyrocket sales.

Trends Shaping the CTV Advertising Ecosystem
As with any emerging digital marketing channel, connected TV advertising will likely go through a massive transformation. As more marketers take the plunge, the landscape will become increasingly competitive.
But the rise of OTT and streaming platforms will encourage more content creators and publishers to launch their own services. It’ll increase the CTV advertising inventory and make it more affordable.
Marketers can also expect to use more sophisticated integrated platforms for tracking and monitoring CTV ads.
Harnessing CTV Advertising for Your Brand
The rise of connected TV advertising is still in its infancy. As more brands advertise on connected TV, the landscape will become saturated with promotional content. At Lever Interactive, we provide our clients with the right solutions to leverage the benefits of CTV advertising to beat the competition.
If you’re keen to understand how CTV advertising works and whether it’ll fit into your digital marketing strategy, you can reach out to us at sales@leverinteractive.com. We’re always looking forward to helping you with your CTV advertising and digital marketing needs.
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