The Evolution of TV Advertising: Traditional vs Connected TV

Read on to explore the differences, benefits and strategies for best practice in TV advertising.

Traditional Linear TV: What is it?

• Definition: Broadcasting content on predetermined schedules

• Types:

  • Cable TV

  • Satellite

  • Over-the-air broadcasts

Traditional TV Advertising Implementation Process:

1.   Audience identification

2.   Campaign planning

3.   Ad creation

4.   Media buying

5.   Broadcasting

6.   Performance monitoring

7.   Strategy adjustment

Connected TV (CTV): What is it?

• Definition: Television content streamed via internet-connected devices

• Components:

  •   Smart TVs

  •   Mobile devices

  •   OTT (Over-the-Top) devices

*Key Distinction: CTV refers to devices, OTT to content delivery method

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Comparative Analysis

Traditional TV Strengths

1. Broad Reach

   • 95% US household penetration

   • Established viewer habits

   • Prime-time viewing patterns

2. Brand Credibility

   • High perceived legitimacy

   • Trust factor

   • Professional association

3. Storytelling Impact

   • Emotional connection

   • Memorable content

   • High production value

Traditional TV Limitations

1. Measurement Challenges

   • Limited tracking capabilities

   • Uncertain viewer engagement

   • Imprecise targeting

2. Viewer Behavior

   • 86% skip commercials

   • Multi-device distraction

   • Declining viewership

3. Cost Structure

   • High upfront investments

   • Rising rates

   • Limited flexibility

Connected TV Strengths

1. Advanced Targeting

   • First-party data utilization

   • Third-party data integration

   • Precise audience segmentation

     
     

2. Performance Metrics

   • ROAS tracking

   • Site visit measurement

   • Completion rate monitoring

   • Cost per visit analysis

   • Google Analytics integration

     
     

3. Case Study Results

   • Mattress Retailer: 16:1 ROAS

   • Software Brand: 2X higher ROAS vs retargeting

   • Travel Site: 5.28% site visit rate

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Technical Requirements for CTV Advertising

Video Specifications

• Ratio: 16:9, 1920×1080

• Duration: 30 seconds maximum

• Format: .mp4 or .mov

• Size: Max 200MB

• Frame Rate: 23.98, 25, or 29.97 FPS

• Bit Rate: ≥2500 KBPS

Audio Requirements

• Mix Level: -10db to -14db

• Dialogue: -12db to -15db

• Music: -18db to -22db

• Effects: -10db to -20db

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Implementation Best Practices

Creative Elements

• Persistent logo placement

• Clear URL display

• Strategic voice-over usage

• Strong call-to-action

Campaign Strategy

• Multiple ad length options (15/30 seconds)

• Platform consolidation

• Quality inventory selection

• Performance monitoring

Market Positioning

• Direct-to-Consumer focus

• Cross-channel integration

• Incremental growth targeting

• Audience behavior adaptation

Future Outlook

• Projected doubling of ad spend by 2023

• Increasing cord-cutting trends

• Growing DTC brand adoption

• Enhanced targeting capabilities

• Improved measurement metrics

Recommendations for Advertisers

• Start with existing video assets review

• Develop both 15 and 30-second versions

• Implement clear tracking mechanisms

• Choose consolidated platform solutions

• Focus on performance metrics

• Maintain creative flexibility

• Monitor viewer behavior patterns

• Optimize based on analytics

Key Performance Indicators

• Return on Ad Spend (ROAS)

• Site Visit Rate

• Completion Rate

• Cost per Completed View

• Geographic Performance

• Device-specific Results

• Conversion Tracking

• Audience Engagement Metrics