Traditional, Linear, Connected TV, OTT and Advanced TV Advertising…
In this blog, we’ll be discussing the different methods of advertising on streaming services.
Traditional TV
This method offers a 1:1 transaction with the television network /station selling airtime and businesses purchasing those spots. The goal was to get advertisements and brand messaging to the consumers that were watching with hopes that sales would soon follow. If you want to quickly reach mass audiences, this could be the way to go, but there are certainly more efficient & focused ways to target viewers.
Linear
Linear television is a traditional content distribution system that works by broadcasting TV programs on specific channels in scheduled time slots.In simpler terms, the viewer tunes in at a specific time to watch their desired programs. The viewer can record a given program on aDVR and watch it later since they have no control over the displayed content and must watch whatever programs are available at the time. Also, the consumer has no control over the ads they see and can’t skip them since they are scheduled through satellite / cable TV.
A report showed that, in Q1 2018 weekly linear TV viewing reached 88% of the adult U.S. population. One year later, another report released a statement that the impact of commercial TV ads fell by 4.4% in2019 and could fall as much as 21% by 2025.
TV advertisers can combat these downfalls by combining linear TV advertising with programmatic buying, thereby introducing programmatic linear TV (PLTV) to media buyers. The solution allows advertisers to add some limited targeting methods to their advertising campaigns.
Connected TV (CTV)
Connected television can be supported by any device that is designed to support multimedia and connect streaming content – Roku, YouTube TV & SmartTVs to name a few. In other words, a CTV advertising campaign can be supported by any internet-connected device and will reach TV viewers everywhere.
For the OTT model to work, devices need to be connected to the Internet.These devices come under the term connected TV (CTV). One of the most popularCTV examples would be streaming services. Advertisements are shown along tv shows or livestreams that are shown on a consumer’s streaming device -no cable or satellite subscription is required.
OTT (over-the-top) Video
OTT video refers to video-streaming platforms that have access to the Internet and are connected to the TV set. The traditional way of receiving a signal is through radio waves, a cable, or satellite, while OTT refers to transmitting “over the top”of existing infrastructure (internet).
For a viewer to access OTT services, they need a smart device, computer, game console, or streaming device like Apple TV. Advertising on OTTis like advertising on linear TV, with the difference being the delivery model— ads are served through streaming services.
OTT vs. CTV
In simple terms, the main difference between OTT and CTV is that OTT refers to the content being delivered on streaming services, and CTV refers to the device that the content is being displayed on. The majority of CTV and OTT ads are bought and sold via direct deals and private marketplace deals since they are considered as limited and premium inventory.
Advanced TV
Advanced TV refers to the various ways of streaming television content with the main difference being how the ads are served. This method enables more accurate user targeting and thus is in opposition to the traditional broadcasting model where targeting can be limited.
Summary
Each content delivery option provides various opportunities and drawbacks for consumers with their viewing preference dictating which streaming option is most optimal for them.
On the other hand, advertisers now have multiple options for meeting their target audience in their homes. The interaction can be traditional, as in the linear tv advertising model, or more personal, as in the other options mentioned in this blog. Trends in the TV advertising industry show that linear television is becoming a past, and the future is held by advanced technologies.
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