Blog Trends

The Golden Age of Connected TV

A new golden era of television has emerged and become a revolution for brands and advertisers. It’s called connected TV. For those still getting up to speed, connected TV is television that is connected to the internet. Instead of watching via a broadcast signal or a cable network, viewers watch connected TV using apps such as Hulu, YouTube, or Roku; gaming consoles such as Xbox, PlayStation, or Switch; or a smart TV. According to recent data from The Trade Desk’s survey with YouGov, 64 percent of US adults have never had cable, or are planning to or have already cut their cable subscriptions. In the young-adult segment (18-to-34-year-olds), that number grows even higher to 74 percent.1 Audiences are showing that they prefer video content on demand—watching what they want whenever they want—and they don’t mind advertisements as a way to reduce the cost of streaming TV subscriptions.

Meanwhile, advertisers get much greater control and measurement with connected TV. Like other digital platforms such as display advertising, search advertising, and social advertising, advertisers using connected TV have the ability to target video ads by region, demographic, look-alike modeling, and much, much more. As The Trade Desk’s CEO, Jeff Green, puts it, “There is no place where advertising is both more effective or more measurable than in connected TV right now.”2 That’s a stunning value proposition.

The transition to connected TV is a trend that’s been building for years. But the pandemic has turned that wave into a tsunami and a golden opportunity for advertisers to jump in or increase what they’re already doing. Here are three reasons why connected TV is seeing a spike right now:

1. Viewers are looking to lower expenses.

The economic shock from the pandemic has consumers looking to cut costs. Cutting cable TV subscriptions is one way to do it. Ad-supported streaming services allow audiences to keep costs low rather than paying for premium ad-free formats.

2. The pause in live sports has disrupted viewing habits.

Many viewers have stayed with cable TV subscriptions to watch live sports. But the cancellations of games and entire seasons are leaving temporary holes (we hope!) in sports programming that are hastening the move to on-demand connected TV.

3. More at-home viewers mean more ad inventory.

With more people staying home and watching connected TV, ad inventory is up. That means there is more opportunity for brands to appear alongside premium content and increase the brand lift of an already compelling advertising channel.

From the producer’s perspective, connected TV provides that opportunity to understand the audience with more accuracy, tell stories more directly, and make content more relevant. GLG has been finding great success with connected TV for many of our clients today, from large consulting firms to regional grocery brands. The success of these campaigns and the confidence they bring in making decisions, in both creative strategy and media strategy, is immeasurable. Well, actually, it’s quite measurable. That’s what this new golden age is all about.

GLG is a full-service advertising agency. We would be happy to show you the benefits of what an integrated advertising campaign that includes connected TV will do for your business.

 

1. White Paper: The Time Is Now for Connected TV, downloadable white paper, The Trade Desk website, May 13, 2020, https://www.thetradedesk.com/blog/the-time-is-now-for-connected-tv-white-paper.

2. Jeff Green, “In Human Terms, Episode 13: Connected TV Acceleration,” The Trade Desk, posted April 22, 2020, YouTube video, https://youtu.be/X0kxUofQWJ4.