It’s here. There is no more time to take a wait-and-see approach to connected TV. Long gone are the days of black and white TV screens, and rabbit ears. Technology has far advanced over the last century.
- 1928: the first experimental television broadcasting
- 1939: NBC becomes the first network to feature regular broadcasts
- 1946: 1951: The number of TV sets in U.S. households increased from 6,000 to more than 12 million
- 1953: the first all-electric color TV was introduced
- 1976: Ted Turner’s superstation WTCG launched the first basic cable network
- 1980s-1990s: Networks like Disney, HBO, Cinemax, Showtime, Starz popped up and the standard cable box was introduced
- 2000-2010: Analog transitioned to digital for a better picture, sound quality, and more programming channels
- 2012: Streaming and Video on Demand
- 2014: Over 110 million U.S. adults watch via connected TV
- 2019: 759.3 million connected TV sets worldwide
To define Connected TV (CTV) think of content that a viewer watches via a streaming internet connection. This content is usually accessed through apps directly on Smart TVs or through specific devices like Apple TV, FireTV and Roku.
CTV is an advertiser’s dream; ads can’t be skipped or blocked and view-through rates are always high. (Which often cannot be replicated through digital media.) Audience targeting isn’t based on viewership demographics, they’re actually based on impressions using software automation and advanced data technology. And the best part? When a viewer matches your desired audience, only then are the ads purchased and delivered to the viewing audience.
“The majority of American households now subscribe to at least one video streaming service.”
The bottom line is that we can no longer think of connected TV as an experiment, now is the time to strategize. Statistics show CTV audiences aren’t only millennials either, older Americans are now a big part of the CTV audience thanks to the rise of Smart TVs and the increased price erosion from declining LCD TVs. According to statistica.com Smart TVs were around 70 percent of all TV shipments in 2018, and the number is only rising.
“The average connected television (CTV) user is older than advertisers might think, and almost 70 percent of these users have children.”
So, for our 2019 industry predictions, it is clear that brands will need to be flexible and open to change, and that means it’s time to diversify your ad spend and invest in these emerging technologies. So, from the words of Bob Dylan “the times they are a-changin’” and OEA is ready. Are you?