The way in which the American public consumes media is evolving at an exponential rate—are your advertising methods keeping pace? We are in the midst of a television revolution with the emergence of over-the-top (OTT) and connected TV (CTV), and Market Mentors can make sure you’re responding to this transformation by going over the top and creating a balanced media strategy.
What’s the Difference? Linear TV vs. OTT vs. CTV
TV is everywhere! Watching television is no longer the passive experience it used to be—younger audiences are picking and choosing their consumption methods instead of channel surfing through a cable box. Let’s take a look at some of the different models that now exist.
- Linear TV: the classic system in which a viewer watches a scheduled television program at the time it airs on its original channel. The viewer typically watches through regular programming or by paying for a cable or satellite subscription.
- OTT: a media service offered directly to viewers via the internet, bypassing cable, broadcast and satellite TV platforms. This refers to content such as Netflix, Amazon Prime, Hulu, etc.
- CTV: the device that delivers the OTT content to your screen, such as a Smart TV, Apple TV, Amazon Fire TV Stick, etc.
The Benefits of Adopting OTT and CTV
Nearly 82 million U.S. households—about two-thirds of all homes in the United States—use some form of CTV video, and that figure is rapidly growing as more and more viewers decide to cut the cord. The popularity of streaming has never been higher, so now is the time for your brand to take advantage.
The primary benefit of OTT and CTV advertising is the ability to reach a more targeted audience for a potentially much lower cost. CTV is bought programmatically through software and priced by cost per thousand (CPM). With this method, you can target specific audiences, increasing the likelihood that your ads will be relevant to the viewer. This, in turn, cuts the waste and stretches your marketing budget by providing the high-impact advertising experience of television while also offering the ultra-focused benefits of digital marketing.
What is Your Goal?
In order to achieve a balanced and successful approach to media buying, you first need to understand the goals of your target consumer. Are you trying to build brand recognition or directly increase your sales? Linear TV is preferable for middle-aged and older audiences as well as those that are paying close attention to the local news landscape. It is also better for overall brand recognition while CTV shines with younger adults and increased sales. Why?
Linear TV follows an advertising buying model based on reach and frequency, giving you the opportunity to cater to your primary demographic audience by being in the right place at the right time. Your ad will run on specific stations or programs that will reach these viewers repeatedly. On the other hand, CTV’s CPM method targets prospective customers with precision, instead of casting a wide net. With CTV, you can build your target audience beyond age and geography (demos).
Achieving a Balanced Approach
While CTV should now be central to any media strategy, the best approach balances this emerging technology with other advertising mediums. In addition to linear TV, CTV can be used in conjunction with terrestrial and streaming radio, digital display ads, paid search and outdoor advertisements, complementing widespread and targeted ads to hit multiple audiences simultaneously.
Are you interested in learning more about the ways Market Mentors can help you get connected to expand your reach? Reach out today.