Why Advertisers Should Move Their Ad Budget From Traditional TV to Connected TV

Why Advertisers Should Move Their Ad Budget From Traditional TV to Connected TV

By Jessica Chase, CXO at Agility

In advertising, it sometimes helps to think about how our children will be consuming advertising in the future. If we look at our children and think about them leaving the house when they are old enough – do we as marketers really think they will sign up for cable television? At this rate, it’s highly unlikely. Our children will be consuming television advertising through apps via connected TV (CTV). The 18-34 year old group is cutting cable cords at the rate of 74%, but the other age groups aren’t that far behind. The 35-54 group’s cord-cutting rate is 64% and the 55+ age group is cutting at a rate of 56%. Users watching television content on traditional TV is quickly becoming non-existent and obsolete.

The 18-34 demographic is more open than any other age demographics to watching ads in exchange for getting a free service. This is a huge shift from the world we lived in just a few years ago where users consumed content on traditional TV and skipped all ads with their TIVO devices. With connected TV (CTV) advertising, brands can get their advertisements in front of a demographic that’s watching and engaging with their ads in exchange for free content through streaming apps. 

You’re probably used to traditional TV metrics such as gross rating points (GRPs) that are based off of Nielsen data to measure your traditional TV campaigns. According to Digiday, the GRP metric is based off of and modeled off of .03% of the population. Agility can help you get your TV advertisements in front of the right demographic at the right time with in-depth data insights. Not only will this help you save time and money, it will help you serve ads to a more relevant user base. 

Advertisers will spend nearly $7 billion dollars in Connected TV in 2020. OTT/CTV ad requests are up 1640% year over year. It’s exciting that brands can now reach users who are consuming TV online, in-app TV, audio and podcasts effectively and efficiently. Agility has the ability to help you reach cord cutters and cord nevers right where they’re consuming on the big screen. 41% of individuals reached through Agility on Connected TV (CTV) were unique and not reached by ads on linear TV.

Apps like Hulu, Disney+, Netflix are coming out with amazing content that connects users through a shared experience. The TV landscape is changing. It’s changing to a more digital, streamed platform. Something fundamental is going to stay the same – TV is going to remain an amazing vehicle for story telling and an amazing vehicle for brands to connect with consumer. It’s a great place for brands to tell their stories as well.

Move Your Ad Budget From Traditional TV to Connected TV

CTV/OTT gives you the cost-effective ability to reach your target audience with cross-device video ads through connected TV apps.

41% of users reached through Agility on Connected TV (CTV) were unique and not reached by traditional TV ads. An estimated 4.56 million TV households opted to ditch traditional TV in 2019 and that’s projected to grow in 2020. It’s time to move your ad budget from traditional TV to CTV. If you aren’t convinced that now is the time, we recommend setting aside some budget to test CTV campaigns in 2020. You’ll be surprised how many more data insights you are able to get from CTV campaigns in comparison to traditional TV. And not only will you get more insights, the data will be more accurate than ever.

The Agility team consists of well versed programmatic professionals equipped to help you achieve your marketing goals. We specialize in helping brands make the leap from traditional TV to connected TV. Let us help you today. Contact your Agility representative or email support@agilityads.com for help now.

A Smart TV, also known as a connected TV, is a traditional television set with integrated Internet and interactive Web 2.0 features which allows users to stream music and videos, browse the internet, and view photos. Smart TV is a technological convergence of computers, television sets and set-top boxes. Marketers can show CTV and over the top (OTT) ads to consumers on Smart TVs through apps such as Hulu, Fubo.tv, Pluto.tv, Crackle, etc.

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