Running commercials on TV has been the choice of advertisers for decades, since the first TV ad ran in 1941. But, audiences today are not spending time watching TV like they used to. “Cord-cutters” and “cord-nevers” are on the rise, and in the US alone, 55% of the population will watch programs on Connected TV (CTV) this year.
In our latest eBook, Connected TV: The Emotional Power of TV and the Precision of Programmatic, we help travel marketers learn about CTV benefits and industry trends, and why CTV works in reaching travel audiences—for both linear and programmatic buyers.
What is CTV?
The channel is proving an increasingly popular format with travel marketers. But, when using the terminology, the actual meaning is often misconstrued. The term CTV is commonly used in reference to many aspects of the digital TV world, interchangeable with OTT or advanced TV. CTV is any TV that can be connected to the internet and access content beyond what is available via a cable provider, and any device that can be connected to a TV, allowing a continuous stream of content via an internet connection. i.e.,Roku, Apple TV, Xbox, and PlayStation. Think of CTV as using a smart TV to watch content through OTT devices.
Why Does CTV Matter to Me?
Where consumers go, advertisers go. And today, consumers are cutting the cord on linear TV—making CTV one of the largest opportunities for advertisers to reach new audiences and enhance the effectiveness of their video ad campaigns. This year alone, 57.2% of the US population will be connected TV users, equivalent to 190M users. By 2022, CTV users are expected to increase to 204.1M, and programmatic video will account for more than 83% of all US video ad spend.
“Cord-cutters” are viewers who have canceled their linear TV subscriptions for CTV services only. “Cord-nevers” are usually younger generations who have never subscribed to linear TV.
CTV’s millennial audience concentration and the trend of their high travel spend is a powerful combination for travel advertisers. With CTV, advertisers can influence a millenial’s path to purchase on a tech savvy ad platform. CTV audiences tend to be younger (millennials are 67% more likely to be in a CTV-only house, and 25% report that they don’t have pay-TV) and, because they access TV interactively, have the potential to be more engaged with other viewers through social media. In fact, according to an IAB report, 87% of consumers use a smartphone, computer or tablet when watching content on a connected TV for: texting friends, searching for information, reading or posting on social media, searching for reviews of a product they saw on a commercial.
How Can I Connect with Travelers Through CTV?
Consumer travel behavior has seen massive shifts with technological developments. Travelers are dreaming, searching, and booking travel across devices through a variety of advertising channels. Travel brands need to diversify their ad channel mix to stay relevant and align their budgets to guarantee their presence wherever the traveler may be—and they are finding that on CTV. A third (34%) of travel marketers planned to use CTV in 2019.
According to a recent Skift and Sojern report, CTV presents an opportunity for travel marketers, as in the case of GoUSA TV, a connected TV network launched last year by the destination marketing organization Brand USA. The channel offers curated video content to inspire travelers to visit the US. The platform brings together the best of the TV and digital worlds by offering the scale of linear TV with the precision targeting once associated only with digital.
Disney has also gone in on CTV. In August 2019, Disney announced they will offer a bundle package of its three streaming services—Disney+, Hulu, and ESPN+. One can predict their services will feature ads that highlight their parks and cruises to travelers.
Interested in learning more about connected TV for travel marketers? Read more in our latest eBook, Connected TV: The Emotional Power of TV and the Precision of Programmatic.