Traditional television, also known as linear TV, has long been one of the most popular and reliable choices for advertisers to reach consumers. However, connected TV (CTV) is quickly eroding the market share of traditional broadcast as CTV continues to rise as the platform of choice among TV viewers. Offering greater flexibility and a vast content library, CTV is becoming an essential part of modern advertising strategies. In the United States alone, eMarketer estimates that there will be 80 million cord-cutting households by 2026, showcasing the shift from traditional TV to streamed content.
Linear or traditional TV refers to the conventional television broadcasting model where content is delivered via satellite or cable. Content is programmed and displayed on particular channels at specific times and dates.
Connected TV (CTV), on the other hand, refers to any television set with an internet connection, offering viewers the freedom to watch content on-demand. Viewers can use smart TVs, gaming consoles, and streaming devices to access streamed content from platforms like Netflix, Hulu, and Amazon Prime Video, choosing from a wide range of programming, live events, and viewing options.
On traditional cable, content is broadcast at specific times and dates, while connected TV allows viewers to watch content on their own schedule.
Typically, TV viewers watch programs in real-time on cable, and the content is delivered through broadcast channels. Connected TVs require an internet connection and provide content through streaming services, giving advertisers new ways to reach their target audience.
While linear TV ad placements depend on specific times and scheduled programming, connected TV advertising offers more precision targeting. Advertisers can reach niche audiences based on demographics, interests, and viewing habits, making CTV advertising a more data-driven approach to ad spending.
Traditional television advertising involves placing commercials within programs by buying time slots or pods during specific commercial breaks to reach the target audience. The Designated Market Area (DMA) refers to a group of territories considered the primary television viewing area for a particular city or metropolitan region. The DMA defines the television markets, and everyone within a DMA viewing a specific channel where a brand purchases ad space will see the same commercial.
Linear TV ad placements are effective for broad audience reach but lack the precise targeting capabilities of connected TV vs. linear TV approaches. Advertisers must rely on DMA-based targeting, which can limit the effectiveness of ad spending since many viewers may fall outside the desired demographic.
CTV advertising is a form of digital advertising that involves placing ads on connected TVs like smart TVs and streaming devices. Advertisers buy ad inventory through ad exchanges or directly from CTV platforms and then place the ads within the content viewers watch on their connected TVs. This approach allows advertisers to reach their target audience with greater precision targeting by analyzing viewing habits and engagement data.
With the rising number of cord-cutters and increasing CTV viewership, advertisers are shifting their focus from traditional television advertising to connected TV advertising. CTV enables advertisers to reach highly specific demographics, ensuring that ads are delivered to relevant viewers. This capability contrasts sharply with traditional broadcast advertising, which cannot offer the same level of addressable TV precision.
While linear advertising enables advertisers to reach a wider audience base, the targeting capabilities are more limited. Advertisers cannot target niche audience segments making it difficult to target specific demographics or interests precisely. Since targeting is primarily based on DMAs, advertisers have restricted capabilities and could target segments where many viewers fall outside the desired target group.
Bagging prime-time slots for ads on traditional TV is also expensive when compared to CTV ads, and measuring campaign effectiveness is also difficult on cable as there is no access to detailed data and analytics. Advertisers only rely on traditional measurement methods like Nielsen ratings that provide a general overview of viewership.
Furthermore, CTV advertising provides real-time data and analytics, allowing advertisers to measure impressions, engagement rates, and conversions. Unlike linear TV, where success is measured through Nielsen ratings and broad estimates, connected TV advertising allows for more accurate and trackable results. This makes it easier to adjust advertising strategies and optimize campaigns in real-time.
Unlike traditional television advertising, which broadcasts all ads to a general audience, CTV advertising enables personalization and relevance by targeting based on audience interests and viewing habits. CTV targeting focuses on an interest-based approach to effectively capture audience attention and engage them by showing viewers ads that are relevant to their preferences.
Since the ads align with a viewer’s real-time interests and you can now engage with the ads, CTV ad placements tend to lead to higher engagement and conversion rates. The ability to track key metrics like impressions, viewability, engagement rates, and conversions, makes it easier to measure the effectiveness of campaigns, optimize ads, and measure ROI.
Linear TV viewing is often passive, the engagement rates are lower, and viewers are less likely to interact with ads or take immediate action. CTV ads offer interactive capabilities that allow viewers to take action with an ad to learn more about the product or service, leading to higher levels of engagement and brand recall. The ability to target specific audiences reduces ad budget wastage on viewers who are not relevant, thus making CTV more cost-effective than traditional advertising.
CTV advertising is emerging as a preferred choice among advertisers as it empowers them with a more targeted, measurable, and engaging way to reach audiences compared to traditional advertising. CTV advertising can help maximize the effectiveness of campaigns by aligning ads with the current genre or show being watched by viewers. The ads appeal to the audience as they find them more relevant and engaging.
CTV and linear TV both have their strengths, but as consumer preferences shift towards streamed content, advertisers must adapt to these changes. While the advantages of linear TV advertising include broad audience reach and familiarity, CTV advertising offers better targeting, measurable engagement, and cost efficiency.
Additionally, comparisons highlight how CTV reduces ad budget wastage. Traditional TV ads often reach broad audiences, including many viewers who may not be interested in the product or service being advertised. In contrast, CTV’s addressable TV capabilities ensure ads are shown to the most relevant viewers, improving conversion rates and campaign effectiveness.
The growing adoption of smart TVs, gaming consoles, and streaming services like Netflix and Hulu further solidifies the dominance of connected TV in modern advertising strategies. As more TV viewers transition to digital platforms, advertisers who leverage CTV advertising will benefit from improved precision targeting, higher engagement, and a more effective return on investment. The future of advertising lies in the evolving landscape of CTV vs. linear TV, with connected TV leading the way in delivering personalized, data-driven ad experiences.