Connected TV is exciting marketers and consumers alike. Connected TV (or “CTV”) combines the best attributes of linear TV with the precision of digital media, while giving audiences what they want – a controlled viewing experience supported by great content. Marketers have a lot of reasons to be excited about CTV, including how Connected TV improves reach.
Here are 3 ways CTV improves reach:
190M people watch Connected TV content today1; that’s ~60% of the U.S. population. While CTV coverage is pretty impressive in its own right, what makes it even better is that it includes people that are unreachable by traditional, linear TV – like cord-cutters and cord-nevers. As mentioned in our last CTV post, there are about 24M cord-cutters and cord-nevers today, and by 2019, that number will jump 17% to 28M1. Connected TV helps advertisers regain reach to these viewers to message them effectively.
As with all digital media, Connected TV audiences can be segmented and targeted based on user-level data. Advertisers can identify a high-value individual and their associated cookie or device-ID level, match him or her to a hardware ID, and serve that person a Connected TV ad. Net net, CTV targeting and delivery are explicitly tied to an individual.
Linear TV spots, on the other hand, are still purchased and targeted based on the archaic principles of rating points. It’s impossible to target a single individual through the purchase of rating points (GRPs or TRPs), and to add insult to injury, these ratings are hardly representative of all TV viewers. GRPs are still calculated by projecting viewership data from a small subset of homes. National ratings are derived via National People Meters from 20,000 homes (0.016% of the 125 million U.S. households). Local ratings are also based on an abysmally small count of U.S. viewers, and atop that, almost 75% of DMAs (154) are still tracked by Paper Diaries. Yup, paper; local ratings in diary markets are dependent on people writing down what they watch on TV…oh, and it’s only measured four times a year.
We could go on about the limitations of GRPs and TRPs, but I think we’re all on the same page. Connected TV’s targeting capabilities outshine linear TV by a long-shot.
Connected TV strengthens engagement in two ways:
Effective reach is just the beginning. Connected TV provides many more benefits to marketers – like actionable measurement and smart & easy execution. Check out our list of 9 Reasons Marketers are Excited About Connected TV to learn more.
1 eMarketer, US ConnectedTV Users, by Device, 2015-2020; Oct. 2016 2 eMarketer, Americans Cutting the Cable TV Cord at an Increasing Pace; Dec. 2015
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