Update: Where Are Marketers With Connected TV Today?
TV advertising has historically been an expensive yet successful way to build long-term brand awareness among target demographics. However, in the last decade, certain target demographics have shifted the way they consume TV content. The common target audiences companies want to reach today are millennials and Gen Z, but they are dropping linear TV and cutting the cord by the millions. For Gen Z, a term “Cord-Nevers” has emerged, indicating a new generation of TV watchers who grew up with Chromecast or Roku, never having consumed entertainment on a cable or satellite TV. One might ask: what is the ROI on spending big chunks of ad budget on a 30-second commercial with little to no trackable metrics? In comparison to CTV (Connected TV) advertising, much lower.
In the next five years, 10.8 million customers will cut-the-cord, and in the next two years, 40% of TV watching hours will be from CTV devices. Advertising on CTV can help brands grab a market earlier before CTV adoption rate becomes more than 50%. CTV has the most engaging and premium inventory available and more targeted capabilities than linear television. If you’re a brand marketer looking to advertise a brand awareness campaign on TV, Connected TV devices are an excellent way to target younger generations.
By now, most millennials have entered the workforce and are possibly in the market for a TV. Gen Z-ers are still living with their parents, but in 10 years time, they will be in the market for certain modern day necessities. If your brand’s product/service is something that has a much longer conversion path like education, or purchasing a new vehicle, the time to target younger age cohorts is now. If you don’t enter somewhere in their minds today, then you won’t be as salient in their minds 10–15 years down the road. This is also a great time to be advertising, particularly to Gen Z-ers. Advertising is not seen as much of an eyesore to younger watchers, in fact, 54% of them either like or don’t mind CTV ads, and nearly 40% of them have shared an advertisement with a friend or family member. This is mostly due to Gen Z being native to CTV and OTT device watching, as well as the higher production value of TV ads in general.
Building a brand awareness TV campaign against Millennial and Gen Z demographics has a much lower barrier to entry than traditional TV commercials. On top of that, with CTV, you are targeting the exact demographic you want, not just a rough estimate. A lower budget with better targeting, reporting and optimization capabilities? That sounds like a much better deal.
Curious about how Katana can help you create and manage a CTV campaign? Contact us at letstalk@katana.media
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