The Future of TV Advertising: Linear vs Connected TV

The investments in CTV advertising keep growing: only in the US, this amount is expected to surpass $42 billion by 2027, while in 2022, it was around $20 billion. Does this mean the end of linear TV advertising? Our guide is here to answer this question and clarify the pros and cons of both linear and CTV advertising.

What is Connected TV?

CTV refers to any device with an Internet connection that allows users to browse the web and watch video content on connected TV streaming platforms like Netflix and Amazon. A smart TV is the most obvious example here, but gaming consoles and devices like the Roku Streaming Stick are also on the list. These Internet-connected devices enable CTV advertising so that ads are displayed on the users’ smart TV screens.

Pros of CTV Advertising

Let’s review the benefits of CTV and this type of advertising.

Growing Audience

The number of CTV users is increasing — the figure is forecasted to exceed 62 million by 2025 (in the US). Besides, CTV ads are often displayed to several people at once (for instance, when a family is going to watch a movie together). For advertisers, this means access to a wider audience, which is a way to drive conversions.

Precise Targeting

Programmatic CTV advertising enables accurate targeting and allows marketers to deliver the right messages to the right users at the right time. As a result, the performance of the ads increases.

Higher Ad Quality

CTV allows for delivering high-quality ads fullscreen and with stereo sound, which draws attention and increases ad viewability. Additionally, marketers can experiment with different ad formats to drive engagement and ensure better campaign results.

Easy Monitoring

Thanks to programmatic technology, CTV campaigns are easy to track, analyze, and adjust according to the collected insights. This way, marketers can not only improve the performance of their ads but also allocate their budget more effectively.

Cons of CTV Advertising

The advantages of CTV marketing are convincing enough, but there are still several nuances to keep in mind.

Audience Specificity

CTV devices are getting more and more popular among younger generations, while so-called baby boomers and Gen X are adopting them at a slower pace. Therefore, marketers targeting older audiences may find it challenging to reach their customers via CTV.

Ad Fraud

Just like any type of digital advertising, the CTV approach is prone to fraud. Fake impressions and other fraudulent activities can become a problem for marketers, affecting their budgets and data-driven decision-making.

Issues with Clickability

Currently, most CTV ads are not clickable, which affects interactivity. However, advertisers can equip ads with QR codes to solve this challenge.

Ads May be Blocked or Skipped

Users may skip CTV ads, so marketers need to deliver valuable and relevant messages to prevent this from happening and build trust. One more potential danger is that ads may simply be blocked.

What is Linear TV?

Linear TV is a traditional television model requiring a satellite or cable network. All the content is programmed and watched according to a schedule, including ads. Advertisements are delivered during the breaks between the content pieces.

Pros of Linear Advertising

Linear TV seems outdated, but it still has certain benefits.

Access to Older Generations

Marketers targeting older audiences may find traditional TV more effective than CTV. Yes, older demographics are adopting CTV, but many of these users still prefer linear TV since they are used to it.

Ads Cannot be Blocked or Skipped

Since commercials are scheduled, it is impossible for users to skip or block them. However, instead of watching an ad, they may still pay attention to something else.

Advertising During Mass Events

Delivering ads during popular events allows marketers to reach an extremely wide audience at once, which can help improve brand awareness and drive conversions.

Lower Risk of Fraud

Since it is impossible to track clicks or impressions for linear TV ads, the risk of fraud gets significantly lower. Therefore, when comparing linear vs digital ads, the linear ones are safer.

Cons of Linear Advertising

As for the cons, here they are:

Accurate Targeting is not Available

Unlike programmatic CTV ads, linear TV advertisements cannot be targeted effectively. Advertisers may select specific channels and air time, but it is impossible to set up, for instance, age and location. As a result, ads can reach a lot of irrelevant customers.

Precise Analytics is Inaccessible

Linear TV commercials cannot be tracked and analyzed thoroughly. Therefore, there is virtually no way to determine the campaign’s effectiveness and make data-driven decisions.

The Age of the Audience

Marketers targeting younger customers may find it difficult to reach them via linear TV.

High Expenses

Creating high-quality ads and securing air time (especially during popular events) can be very expensive. Companies with small marketing budgets may not be able to compete in the linear TV ecosystem.

Linear vs Connected TV: Who is the Winner?

So, connected TV vs linear TV. Here is the comparison:

When talking about linear vs CTV, CTV seems to be an undeniable winner. However, linear TV may still be helpful for advertisers targeting older demographics. Another approach is to combine CTV and linear TV advertising. Ads can be repurposed to cut expenses on their production.

Achieve Consistent Revenue Growth with Attekmi

For ad exchange owners, the growing popularity of CTV advertising means the need to integrate such features into their platforms. With Attekmi (ex-SmartHub) offering an entire set of ad exchange solutions, this process gets much easier. The CTV advertising capabilities are already implemented in the platform, so you can connect supply and demand partners with ease and start earning right after deploying the solution. 

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Final Word

In the battle of linear TV vs streaming platforms, services like Netflix obviously win due to their convenience. However, older generations still prefer watching linear television. So what to choose? 

While CTV advertising allows for accurate targeting and analytics capabilities, linear TV ads can also bring the desired results. Everything depends on the marketer’s goals. Marketplace owners should integrate CTV advertising capabilities since this type of marketing is on the rise, and doing this with solutions from Attekmi is a way to simplify the process.

FAQ

Linear TV vs CTV. What is the difference? 

CTV devices like smart TVs and gaming consoles are connected to the Internet and allow users to watch any video content they want, as well as pause it, turn on subtitles, etc. In the case of linear TV, all the content is programmed and delivered via cable or satellite network according to a specific schedule. Actions like pausing are impossible.

Is CTV advertising more effective than linear TV advertising? 

Usually, yes, since CTV advertising enables precise targeting, analytics, and control over budget. However, advertisers should remember the probability of ad fraud and the fact that CTV devices are more popular among younger audiences. The choice of advertising approach depends on the marketer’s objectives and budget, although combining them may deliver even better results. 

Is linear TV advertising going to be fully replaced by CTV advertising?

In the near future — no. While CTV ad spending is increasing, marketers invest even more in linear TV ads. Therefore, when talking about linear TV vs connected TV, both approaches are currently in demand, and this is not projected to change in the coming years.