Connected and Traditional TV Ads: The Big Picture
By Kim Burma
Advertising Sales Consultant
Read time: 2 minutes
At Midco, we’re all about staying ahead of the curve and helping businesses do the same. And with our fast-paced, tech-first world, things are changing all the time – including how audiences consume content.
These days, video viewership is on the rise – and streaming services and subscriptions reign supreme! Connected TV lets you access shows, movies, original content and sports conveniently, affordably and right at your fingertips. This shift in media consumption means you have new and exciting opportunities to bring strategic advertising to the right people at the right time – while increasing reach with traditional TV advertising, too.
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What is connected TV?
In a nutshell, connected TV (CTV) is a television connected to the internet via a smart TV, gaming console or streaming device (Roku, Apple TV, Amazon Fire, Chromecast, etc.).
Who’s watching connected TV?
A 2018 eMarketer study estimated that by 2022, 60% of the total US population will be using some form of CTV at least twice a month – or an estimated increase of 21.5 million users between 2018 and 2022.1
That being said, it’s clear that COVID-19 has changed things – as 72% of people are utilizing more media since the pandemic began compared to pre-pandemic.2 People are spending more time at home now, leading to a change in viewership habits across the board, including:
- 70% of people said they were binge watching more TV shows or movies.2
- 31% of people said they have increased use of ad-supported video on demand (AVOD – or Roku, Tubi) services during the outbreak.2
- 66% of people said they were more open to trying new types of media during the outbreak – such as new streaming services.2
- 54% of people said they have learned how to use more features on their smart TV or a TV-related device/platform during the outbreak.2
Moreover, households with kids, Gen Z and millennials are more likely to use CTV rather than (or in lieu of) traditional media. And, homes with streaming devices are 30% more likely to be earning $100K or more per year.3 We’re interested in seeing how these trends affect viewership predictions, but, either way, it’s safe to say that CTV is here to stay – with a bright future ahead.
Should I advertise on CTV or traditional TV?
Despite the growing number of streamers, traditional TV (also known as linear TV) remains incredibly relevant for advertising opportunities. In fact, live TV and time shifted TV make up around 79% of the weekly watching time for US adults 18+.4 People continue to follow their favorite TV channels – and like the familiarity of it – making traditional TV ads a significant way to tap into loyal viewers.
All the while, the research on CTV ads is astounding: 4 out of 5 streamers watch ad-supported programming.5 Additionally, CTV has the ability for more precise geographical targeting (which means less waste and less guesswork), and daily reporting for making data-driven decisions.
So where should you advertise? Our takeaway: both. The best strategy is a complete strategy. When you have a 360-degree approach to advertising, you’ll capture your audience’s attention where it matters AND consistently provide reinforcement in ALL the places they tune in regularly. Combining both linear TV ads with over the top ads doubled brand favorability.6
Kim Burma started at Midco in 1992. As an advertising sales consultant, she works directly with our customers to develop and execute ad campaign strategies. And although the advertising landscape has changed over the past 30 years, Burma still believes in face-to-face meetings and handwritten notes to build trust and customer relationships. She serves as board member for the Children’s Home Society, USD Howling Pack, USD Alumni Association and Sioux Falls Care. Burma earned her bachelor of fine arts degree from the University of South Dakota.
Kim Burma started at Midco in 1992. As an advertising sales consultant, she works directly with our customers to develop and execute ad campaign strategies. And although the advertising landscape has changed over the past 30 years, Burma still believes in face-to-face meetings and handwritten notes to build trust and customer relationships. She serves as board member for the Children’s Home Society, USD Howling Pack, USD Alumni Association and Sioux Falls Care. Burma earned her bachelor of fine arts degree from the University of South Dakota.
1 eMarketer: Connected TV Advertising: Almost Ready for Primetime, Q32018
2 VAB / Lucid: ‘Media Usage in the Time of COVID-19 Survey, Q22020
3 Pew Research Center: About 6 in 10 young adults in U.S. primarily use online streaming to watch TV, Q32017
4 Nielsen: The Nielsen Total Audience Report, Q32020
5 SPOTX: CTV Is For Everyone: An In-Depth Look at Connected TV Viewership in the US, Q12020
6 IPG Media Lab: Magna, Roku, Under the Hood of Over the Top Measurement, 2019