Do you remember when you would change hundreds of channels just to find reruns or commercials? For many viewers, traditional cable television has become a source of frustration due to rising costs and limited control. This frustration has led to a trend called “cord cutting,” where viewers cancel their cable subscriptions and look for other ways to watch shows and movies. One popular alternative is Connected TV, or CTV, which is transforming how we enjoy entertainment. Let’s explore why Connected TV is becoming so important these days.

What is Connected TV?

Connected TV, or CTV, refers to any device that connects to the Internet and accesses content beyond traditional broadcasting methods. These are not just smart TVs with app features but include any device that can stream digital content to the TV screen. This includes streaming devices such as Roku, Amazon Fire Stick, Chromecast, and even game consoles (Xbox, Playstation, Nintendo Switch) that facilitate the delivery of Internet content to the TV.

The definition of Connected TV broadly includes:

Smart TVs: Televisions with built-in internet capabilities and pre-installed apps;

Streaming devices: External devices that enable a regular TV to access internet content (e.g., set-top boxes, HDMI dongles);

Gaming consoles: Systems that offer multimedia functions and streaming capabilities alongside gaming;

Connected TV Apps: Applications specifically designed to operate on these platforms, providing content from various streaming services and networks.

88% of US households own at least one Internet-connected TV device (e.g. smart TV, a streaming device like Roku or Amazon TV Fire Stick, gaming console, etc) and 49% of adults in U.S. TV households watch video on a TV via a connected device daily.

How Connected TV differs from traditional TV and streaming services

Connected TV differs from traditional television in its method of content delivery and interaction. Traditional TVs receive content through terrestrial, satellite, or cable signals, with a linear programming schedule dictated by networks. In contrast, Connected TV uses the Internet for content delivery, allowing for on-demand access and a more personalized viewing experience.

Comparing Connected TV to standard streaming services (like watching Netflix on a laptop or mobile device), the difference primarily lies in the integration and functionality.

While streaming services on mobile devices are designed for personal use, Connected TV is tailored for a communal viewing experience with enhanced quality and comfort of a large screen. Moreover, Connected TV often offers a more integrated user experience, combining live TV, video on demand, and access to various apps and services through one interface, potentially replacing the need for multiple devices. Streaming services also curate their libraries of content, while CTV refers to the broader ecosystem that allows viewers to access this content through internet-connected TVs.

Essentially, CTV acts as a bridge between the limitations of traditional television and the vast amount of content available through streaming services. It offers the convenience of on-demand viewing and a wider range of content options, all delivered directly to the TV screen.

CTV vs. OTT: understanding the nuances

The terms Connected TV (CTV) and Over-the-top (OTT) are often used interchangeably, but there’s a subtle difference between them.

OTT refers to the method of delivering streaming video content over the internet, bypassing traditional cable or satellite providers.

CTV narrows the focus to the device used to access OTT content. It specifically refers to internet-connected TVs, whether smart TVs with built-in apps or those equipped with streaming devices like Roku or Fire Stick.

Think of it like this:

OTT is the ‘what’: It describes how content is delivered – via internet streaming.

CTV is the ‘where’: It specifies the device used to access streamed content – the internet-connected TV.

All CTV is OTT: Every time you watch streaming services on your smart TV, you’re experiencing both CTV (using a connected TV) and OTT (streaming content over the internet).

Not all OTT is CTV: While you can access OTT content on various devices, CTV specifically refers to the TV viewing experience.

Benefits of Connected TV for viewers

Connected TV (CTV) has rapidly become a preferred platform for media consumption, offering several distinct advantages that cater to the modern viewer’s demands for flexibility, diversity, and personalization in their entertainment options. Here are some of the key benefits that highlight why Connected TV is a superior choice for viewers.

Convenience

Connected TV redefines the viewing experience and brings great convenience to viewers. Unlike traditional television, which operates on fixed programming schedules, CTV allows users to watch their favorite shows and movies whenever they want. This on-demand feature is further enhanced with features that allow viewers to pause, rewind, and fast-forward content, giving them complete control over their viewing experience.

Personalization

One of Connected TV’s standout features is the ability to personalize the viewing experience. Using sophisticated algorithms, CTV platforms analyze viewers’ viewing habits and preferences to tailor content recommendations. This personalization means viewers spend less time browsing through irrelevant options and more time watching content that suits their tastes. Over time, these platforms become more and more effective at predicting what viewers will like, making each recommendation more accurate and rewarding.

Wider content selection

Connected TV platforms provide access to an extensive library of content that goes well beyond what is traditionally available on broadcast and cable television. This applies not only to mainstream films and TV shows but also to many documentaries, niche shows, international content, and exclusive original programs produced by streaming platforms. This diversity opens up a world of new entertainment possibilities, allowing viewers to discover content from different cultures, genres and creators they might not otherwise encounter.

Cost-effectiveness

Many viewers choose Connected TV because of its cost-effectiveness. Traditional cable and satellite TV packages can be expensive, often including channels that viewers do not watch. CTV offers a more economical solution through a la carte subscription options, where viewers can select exactly which channels or services they wish to pay for. Moreover, many streaming platforms provide free or ad-supported versions, making it possible to enjoy a wide range of content at a reduced cost or even for free. This flexibility in pricing and subscription models allows viewers to tailor their expenses according to their budget and viewing habits.

Enhanced viewing quality

Connected TV offers not only more in terms of quantity but also in quality. Many CTV platforms stream content in high definition (HD) or ultra-high definition (4K), providing an excellent visual and audio experience. Integration with advanced audiovisual technology in modern Smart TVs ensures that viewers will be able to enjoy cinema quality directly in their living rooms.

Together, these benefits make Connected TV an attractive choice for today’s diverse, tech-savvy, and economically conscious viewers, offering tailored immersive media consumption experiences that traditional TV formats can no longer match.

Benefits of Connected TV for advertisers

Connected TV (CTV) offers a unique and compelling proposition for advertisers looking to reach audiences in a more targeted and engaging manner. As viewers increasingly shift towards streaming content via CTV, the platform presents several advantages for advertising strategies.

Expanded targeting capabilities

One of the characteristic features of CTV advertising is the ability to reach specific demographic groups with unprecedented precision. Unlike traditional television, where ads are broadcast broadly, CTV uses viewer data such as browsing history, app usage, and even geographic and demographic information. This enables advertisers to display ads specifically tailored to the viewer’s interests, age, location, and viewing habits, increasing ad relevancy and the likelihood of viewer engagement.

Measurable impact

Connected TV platforms provide detailed analytics and reporting tools that allow advertisers to measure the effectiveness of their campaigns in real-time. Metrics such as views, click-through rates, and conversions are readily available, enabling advertisers to quickly assess performance and adjust their strategies as needed. This data-driven approach helps optimize ad spend and ensures that advertising budgets are used effectively.

Increased viewer engagement

The interactive nature of CTV ads offers a new dimension of viewer engagement. Advertisers can incorporate interactive elements into their ads, such as clickable content, that can lead viewers to websites, promotional offers, or additional branded content. This not only enhances engagement but also facilitates immediate action by viewers, something that traditional TV cannot offer.

Access to cord-cutters

CTV provides advertisers with a key channel to reach “cord cutters” – viewers who have moved away from traditional cable services in favor of online content. These audiences tend to be younger, familiar with technology and are difficult to reach through conventional TV ads. By leveraging CTV, advertisers can effectively reach this growing segment, which is often more receptive to digital formats and innovative advertising experiences.

These benefits underscore why CTV is becoming an essential advertising medium. As CTV continues to grow, it offers advertisers innovative ways to connect with audiences, measure impact, and increase conversions in ways traditional TV never could.

The future of Connected TV

The future of Connected TV (CTV) has exciting prospects, driven by rapid technological advances and evolving viewing habits. We can expect even more personalized experiences as algorithms become smarter and integration with other smart devices becomes smoother. Voice recognition and AI are likely to play a significant role in making content discovery easy and intuitive.

Launch a CTV app with Spyrosoft BSG

Launching CTV app can be a complex undertaking, involving complex technology and requiring a deep understanding of both software development and user experience. In Spyrosoft BSG, with our expertise in technology solutions, we offer a solid path for companies looking to enter or expand their presence in the CTV space.

Our expertise spans all major CTV platforms, including Roku, Amazon Fire TV, Apple TV, and Android TV, which guarantees compatibility and reach. We go beyond just launching your app. We are committed to your ongoing success, offering continuous support, maintenance, and data-driven insights that help you refine your strategy and enhance viewer engagement over time. Our goal is to make your CTV venture not just operational but outstanding.