What is CTV Advertising? A Guide to Emerging Paid Media

September 5, 2023

Trying to navigate the digital landscape of advertising can be challenging as new technologies continue to emerge. As a wellness brand, keeping up with all of the latest changes will help strengthen your brand’s physical and online visibility. It’s crucial to stay top of mind, especially in an oversaturated and competitive market.  

The key to staying ahead lies in the power of paid media! And not just any paid media, we’re talking about CTV advertising platforms. If you’re asking yourself, what is CTV advertising? No worries, we’ll answer that next. We’ll also cover the benefits of connected TV ads, how to maximize their potential and more. Now let’s get connected!  

What is CTV Advertising? 

If you’re unfamiliar with connected TV ads, let’s break down the basics! Connected TV (CTV) advertising uses devices that stream videos using an internet connection. Traditional TVs use cable, whereas Smart TVs use Wi-Fi to broadcast their programs and ads. Without a Smart TV with built-in internet streaming, consumers need to buy a CTV device to connect to their current TV. 

Some of the most popular types of CTV devices available are: 

  • Google Chromecast 
  • Apple TV 
  • Amazon FireTV 
  • Roku 
  • PlayStation 
  • Xbox 

From your Smart TV or CTV device, you can stream with over-the-top (OTT) content on platforms such as: 

  • Hulu 
  • Apple TV+ 
  • Netflix 
  • Disney+ 
  • Amazon Prime 
  • Discovery+ 
  • Max 
  • Peacock

The ads that play on your TV when streaming your favorite shows or movies are CTV ads. And if you’re like 92% of the households in the U.S. reachable with connected TV ads, you know they’re taking over the digital landscape. And for good reason!  

Benefits of Using CTV Advertising Platforms 

So, what’s all the hype behind connected TV ads? It’s pretty simple really! More and more of the population than ever before are cutting the cord on their cable providers and switching over to streaming devices for their viewing pleasure. As CTV continues to grow with a high number of viewers, there is a virtually limitless amount of untapped potential waiting to be explored.  

Here are three core benefits of using CTV advertising platforms to grow your wellness brand:  

Affordability  

If you’re a small to medium-sized wellness brand, buying a traditional TV ad can be prohibitively expensive. It costs an average of $105,000 to air a 30-second commercial on national TV! Buying connected TV ads is much more affordable and accessible. Instead of paying for a time slot on a big network, wellness brands are paying rates for actual ad views and impressions. Connected TV ad spend is based on cost-per-thousand (CPM) impressions. You can expect a 30-second CTV ad to cost anywhere from $20 to $65 on average. This allows brands to cast a wider net at a fraction of the cost.   

Precise Targeting  

With connected TV ads, advertisers can take a much more custom approach to where the ad dollars go! You’ll have the option to target specific audiences based on things like interests, demographics, and past viewing behavior. Casting a more intentional net allows you to get in front of the consumers who are much more likely to buy into and buy from your brand. Set your ad campaign up for success by targeting strategic buyer personas through CTV advertising platforms. (Learn how to do this in our Cultivating Media Playbook!)   

Extensive Data   

One of the biggest benefits to running connected TV ads is the ability to get granular with the data. Key metrics such as video completion rates (VCR), monthly active users (MAU), viewability, conversion rates, audience reach, attribution, and impressions allow you to truly evaluate success in real-time. With the incredible data points available with CTV, you’re better able to measure the effectiveness of your ad campaigns and optimize through A/B tests to achieve your goals. 

Now it’s time to put everything together and make your wellness brand’s connected TV ads the best they can be!  

How to Maximize Effectiveness of Connected TV Ads 

Get ready to harness the power of connected TV ads with your wellness brand! At the core of your emerging paid media strategy  you develop your ad campaigns, get really clear on what your goals are. Once you have your goals in mind, you can start creating your ad strategies from there. 

Here are some quick tips to leverage the maximum potential of your CTV ads:  

Create Clear Buyer Personas 

Creating buyer personas provides your wellness brand with a strategic foundation to create and distribute ads that resonate with the people who matter most—your ideal consumers. These detailed profiles guide you in crafting both tailored messages and precise targeting parameters based on a potential consumer’s unique needs and behaviors. By zeroing in on these personas before launching your paid media campaigns, you’ll not only see higher engagement and conversion rates, but you’ll also ensure that every dollar spent is reaching an audience with real potential to convert.  

Personalize a Series of Custom Ads 

With connected TV ads, you have the ability to hyper-segment your campaigns down to the specific audiences you want to reach. We always recommend creating different ad variations based on your buyer personas’ demographics and psychographics. Your ad creatives and targeting should always tie back to your initial goals.  

Measure and Analyze Ad Performance 

Data is everything! Use data-driven tactics to improve your ad campaigns and hone in on what’s working while moving on from what isn’t. Measure your performance on the different CTV advertising platforms to scale your campaigns and ad reach. By making tweaks along the way, you’ll be able to drive more conversions.  

We’ve just scratched the surface of all the advantages of using connected TV ads! Continue to explore all the possibilities of using CTV advertising platforms for your wellness brand by downloading our free Cultivating Media Playbook! 

Level Up Your Ad Strategy with Connected TV Ads 

It’s time to LEAP into the world of connected TV ads! No need to ask, what is CTV advertising – you’re an expert now!  

Boost your conversions, engagement, and brand awareness through effective ad campaigns that integrate CTV advertising. Your wellness brand deserves to have its moment to shine. Let connected TV ads help you better reach your target audience and watch as your visibility and sales skyrocket! 

Are you ready to see how Cultivating Media can help your wellness brand make a lasting impact? Contact with us to learn more!

Stay Up To Date!