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Why Connected TV Advertising Will Explode in 2022

December 7, 2021

Connected TV advertising, also known as OTT advertising, is primed to dominate digital video campaigns in the upcoming new year. To maximize the performance potential of your video creatives, placing them on popular streaming services shouldn’t be overlooked. 

Today, we’re going to explore the benefits of connected TV and why you should consider adding this product to your marketing campaign strategy in 2022. First, let’s talk about why these platforms will continue to gain popularity in the near and long-term future. 

The Amount of Connected TV Advertising Inventory Continues to Grow 

In 2019, people began spending more time at home consuming content from their favorite connected TV streaming services. Taking notice, more media titans began taking their programming in-house as they released their own branded platforms. Major third-party streaming companies like Netflix were now competing against the likes of Disney+ and NBC’s Peacock. 

These platforms are not just repackaging nostalgic programs either. Original OTT-native content like Pluto TV’s 76 Days and Hulu’s The Handmaid’s Tale have won Primetime Emmys for their quality acting and storytelling, and Netflix beat out HBO for this year’s awards. Other services like Amazon’s Prime Video Cinema allow viewers to watch movies that may also be in theaters right now. 

The major draw for many of these connected TV apps? They offer free versions. In exchange for not paying a monthly subscription fee, the audience member agrees to watch advertisements throughout their viewing experience. 

Cutting the Cord

Over 50 Million Viewers Will Cut Cable by 2022 

Over 55 million cable customers are expected to cut the cord with traditional cable by 2022. This translates to almost one-sixth of the entire United States population. Rather than pay a large cable bill for a broad range of channels, consumers are opting to pay multiple small subscription fees to OTT services to watch the programming they are actively interested in. 

Beyond eclectic, large-library streaming services, other direct channel apps also exist to serve audiences that have particular interests and preferences. Popular examples include HGTV and AMC’s applications. 

Connected TV Advertising Helps You Reach the People that No Longer Use Cable 

Unlike traditional cable advertising, connected TV campaigns allow you to harness both the power of digital targeting and the broad appeal of the television screen to reach desirable audiences. You can deliver your ads to specific households containing at least one viewer that shares the characteristics of an ideal customer. 

Does this mean that traditional cable has become obsolete? Not exactly. While connected TV advertising proves effective on its own, it can also function as the perfect extension to a legacy media campaign. Combining both allows your agency to reach viewers on both a macro and micro scale to ensure maximum reach potential.

Key Features of a Connected TV Campaign: 

📈 Reach Viewers at a High Point of Engagement

Connected TV provides users with a wealth of on-demand content that appeals to their specific interests. Audiences are viewing these programs with a higher level of engagement, which also implies that they are paying closer attention to what is on the screen. 

👀 Co-Viewing is the Standard for Streaming Programs 

Instead of a Friday night run to Blockbuster, household viewing nights are happening on today’s OTT platforms. Many viewers that are streaming movies and series from these apps are not doing so by themselves. Instead, they are engaging in co-viewing with others, which means multiple sets of eyes on the same ad. 

📺 Ads on the Biggest Screen in the House 

OTT apps are often streamed on televisions. Through devices like smart TVs, casting accessories, and video game consoles, streaming one’s favorite content has never been more accessible. Ads shown in between programming segments will also be shown on these  screens, increasing their visibility by sheer screen size alone. 

Target Audiences at Multiple Levels 

While running an OTT campaign, you can target users across a variety of dimensions, including but not limited to: 

  • Geographic location 
  • Platform-specific audiences 
  • Client website visits (retargeting) 
  • Online search behavior 
  • Demographic characteristics 
  • In-market/intent 
  • Time of day 

What to Look for in a White Label Connected TV/OTT Advertising Partner 

If your agency is considering running connected TV campaigns for your clients in the new year, you might be looking for a partner to help you deliver an enhanced level of performance. As you are looking for the right partner, here are some key factors to look out for: 

⏰ Early Adopters

Though OTT advertising has gained popularity steadily over recent years, it is still a relatively new advertising channel compared to ones like paid search, paid social, or display. By working with a team of early adopters, you can extend your in-house team with one that has managed OTT campaigns through their earliest inception to today’s ecosystem; remaining ahead of the curve on emerging trends and best practices. 

💪 Expert Analyst Team 

Why invest your client’s advertising budget in a provider that will then outsource or offshore your campaigns to a subcontractor? If you desire quality performance, make sure that your potential partner manages your campaigns in-house with a qualified team of expert programmatic analysts. 

🤍 Custom App & Domain Whitelists

Not all connected TV platforms are created equal. We’ve seen ones that are designed for people to stream while they’re asleep and others specifically for pets. When you’re reviewing your options, how do you know which apps are the best for your client’s budget? 

Look for a team that can offer you custom whitelists that can be tailored to your client’s campaign needs. This enables your ability to deploy ads across pre-vetted platforms and direct channel apps that are tested for quality and higher return on ad spend potential. 

💰 Other Complementary Advertising Products 

Connected TV is just one advertising product under the larger programmatic umbrella. Beyond complementing a traditional television campaign, it can also be used in conjunction with other digital tactics like display, YouTube, and audio advertising. The right partner should provide you with a full product suite to activate these opportunities as campaign needs evolve. 

📊 Performance-Based Reporting 

Reporting on campaign performance ensures that your agency can properly evaluate ROAS. With detailed reports in hand, you can prove that your team is delivering as well as identify opportunities to further optimize and refine your tactics. 

Enable Better Opportunities for Your Agency in 2022 with a White Label Connected TV Partner 

At Conduit, we strive to be the elite white label connected TV advertising partner for successful agencies around the globe. With a holistic digital product suite, an in-house team of expert analysts, and our own custom-developed OTT whitelists, we can provide you with the solution you need to say “yes” to better client opportunities.  
To learn more about how we can help your agency scale with connected TV advertising, visit our Agency Partnership page.

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