Streamlining Engagement: Navigating the CTV Platform Ecosystem
Connected TV has taken the world by storm in the last 10 or so years. With the rise of streaming platforms like Netflix, Hulu, and Amazon Prime Video, traditional television viewership has taken a massive tumble. It’s simply more convenient to watch content on-demand versus sticking to a rigid TV schedule and recording the programs you’ll otherwise miss.
It isn’t just the viewers who benefit from connected TV, though. Now, advertisers have a new and much more effective avenue to reach their target audiences. This has led to an explosion of CTV platforms, each offering unique features and capabilities for advertisers to tap into.
With so many options available, navigating the CTV platform ecosystem can be overwhelming for marketers. In this guide, we’ll dive into the different types of CTV platforms and how advertisers can navigate them to streamline their engagement strategies.
- 1 Understanding the different types of CTV platforms
- 2 How CTV advertising works
- 3 CTV advertising strategies to maximize engagement
- 4 Final thoughts about CTV platforms
Understanding the different types of CTV platforms
A CTV platform is any device or service that allows users to stream content on their TV screens. These platforms can be divided into two main categories:
- Connected devices. These are physical devices that connect a TV to the internet, such as smart TVs, gaming consoles, and streaming devices like Roku or Chromecast.
- Streaming services. These are online services that offer content for viewers to stream on connected devices. Examples include Netflix, Hulu, and Amazon Prime Video.
Within these categories, there are also different types of CTV platforms, such as:
- Subscription video-on-demand (SVOD) services — Subscription-based streaming services that offer a catalog of movies and TV shows for viewers to choose from.
- Ad-supported video-on-demand (AVOD) services — Free streaming services that generate revenue through advertisements shown during the viewing experience.
- Live streaming services — These platforms offer live broadcast programming, such as sports events or news programs.
- Virtual multichannel video programming distributors (vMVPDs) — Services that provide a variety of live and on-demand content similar to traditional cable or satellite TV packages.
How CTV advertising works
To get an advertisement placed on a CTV platform, advertisers and agencies use supply-side platforms (SSPs) and demand-side platforms (DSPs).
Supply-side platform (SSP)
Supply-side platforms (SSPs) are technological platforms that allow publishers to automate the selling of their digital advertising inventory. These platforms connect to multiple demand-side platforms (DSPs), where advertisers purchase ad inventory, creating a marketplace that helps publishers optimize the prices of their ad slots through real-time bidding.
In the context of CTV, SSPs work by allowing content providers, like streaming services or connected device manufacturers, to offer their available advertising space to advertisers. The SSP performs real-time analysis of incoming bids to ensure the highest possible revenue for the publisher.
Demand-side platform (DSP)
Demand-side platforms (DSPs) are technology platforms that allow advertisers to manage and purchase digital ad inventory from multiple ad exchanges through a single interface. DSPs enable advertisers to buy impressions from a wide range of publisher sites that are targeted to specific users based on factors like their location, browsing behavior, and demographic information.
Advertisers use DSPs to purchase available ad slots provided by SSPs. They can target their preferred audience, select the type of CTV platforms they want their ads to appear on, and determine the format of the ads. The automation process DSPs provide allows advertisers to optimize their ad campaigns, ensuring they reach the right viewers at the right time, thereby maximizing their advertising ROI.
CTV advertising strategies to maximize engagement
Navigating the vast CTV platform ecosystem can seem daunting, but there are some key strategies advertisers can use to make the most of their engagement efforts.
Understand your target audience
Before diving into CTV advertising, it’s essential for advertisers to understand their target audience. With so many platforms and types of content available, knowing who you want to reach will help narrow down the options and ensure your ads are reaching the right viewers.
Leverage data and targeting capabilities
One of the biggest advantages of CTV advertising is its ability to collect data on viewer behavior. Advertisers can use this data to target their ads to specific audiences, increasing the chances of engagement and ultimately conversions.
Utilize interactive ad formats
Interactive ad formats, such as click-through and shoppable ads, are becoming increasingly popular on CTV platforms. These formats allow viewers to engage with the ad directly, leading to higher engagement rates and potentially more conversions.
Monitor and optimize campaigns in real-time
CTV advertising offers real-time data and analytics, allowing advertisers to monitor their campaigns’ performance closely. This enables them to make adjustments on the go, optimizing their ads and targeting to ensure maximum engagement.
Final thoughts about CTV platforms
Connected TV platforms offer a new and exciting way for advertisers to reach their target audiences. By understanding the different types of CTV platforms, how CTV advertising works, and key strategies for maximizing engagement, marketers can effectively navigate this ever-evolving landscape and stay ahead in the game. So, embrace the opportunities that CTV platforms offer, and get ready to take your advertising efforts to the next level.