Connected TV Will Get Brands Highest Returns On YouTube Ads

YouTube launched its Android app in 2007 and revolutionized the video marketing space as smartphones took over the world. Another revolution is in the making as TV gets a technological makeover evolving into “Connected TV (CTV)”, echoing the features of smartphones.

What is a Connected TV?

Connected TVs are modern television sets with built-in internet connectivity (WiFi-enabled), interactive Web2.0 features, allow OTT entertainment, and run on platforms like Android that support hosting of apps and easy streaming of online content, including videos.

Why Do YouTube Consumers Prefer Connected TV?

Video consumers moved away from traditional TVs to YouTube because they could exercise better control over what content they consume. Another reason was smartphones provided a better viewing experience than their contemporary TV sets.

Connected TVs provide the best of both worlds to video consumers – control over content with access to YouTube and a great viewing experience, thanks to LED technology and Ultra HD resolution. Also, Connected TVs have a YouTube app for easy access.

Connected TVs also provide an opportunity for video consumers to enjoy their favorite YouTube videos along with their family and friends. The time families used to spend watching their favorite series on TVs is now being spent watching YouTube videos on Connected TVs.

YouTube Ads on Connected TV vs Other Devices

According to Marketing Charts, Connected TV have the highest Video Completion Rates among all device types. In its Video Ad Benchmarks in 2019: Completion Rates Rise, Marketing Charts points out, “With a consistent rate of about 96 percent throughout 2019, CTV stands apart from all other devices.”

YouTube consumers are more engaged on Connected TV than on smartphones or tabs. As per another report, viewing sessions on YouTube on Connected TV were more than twice as long as on mobile devices and 30 percent longer than on the PC.

Brands Favor Connected TV in Digital Video Ads Spend

If you are a brand and don’t have a strategy for advertising on Connected TV, it is high time you have one! Brands are diversifying their advertising strategies to include Connected TV in the mix and, in most cases, diverting money from advertising on broadcast TV to video viewing platforms on Connected TV.

As Matt McDonald, Head of Emerging Formats at YouTube points out, “Planning CTV to complement or replace linear TV can help ensure you’re reaching your target audience and entirely new audiences as well.”

According to the Interactive Advertising Bureau (IAB) report ‘Connected TV is the Driving Force in 2020 Digital Video Advertising Spend‘, “Nearly three-quarters (73%) of CTV buyers report shifting budget from broadcast and cable to CTV in 2021. Advertisers, on average, spent $20M on CTV in 2020, and more than a third (35%) of buyers expect to increase CTV video ad spending in 2021.” And as per another report, YouTube received the most significant chunk of Connected TV ad revenues – 36 percent of all US CTV ad revenue in 2020.

The number of YouTube consumers watching videos on Connected TV will increase further as Connected TVs become cheaper and replace traditional TV sets worldwide, akin to the smartphone revolution.

Connected TV Ads Ease Sales, Conversions Are Measurable

Brands must launch advertising campaigns on YouTube, explicitly targeting YouTube consumers on Connected TVs. Brands can tailor their video campaigns for connected TVs – for example, using a different creative or setting a specific device bid adjustment.

Romana Pawar, Director of Product Management, YouTube Ads, in A Shoppable TV Screen with YouTube announced that advertisements on YouTube on Connected TVs have been made more “shoppable”. This has been achieved by YouTube by expanding Video action Campaigns to Connected TVs to help advertisers drive more online sales or generate leads and grow their business.

How will the ads be more shoppable? When YouTube viewers click on the URL that appears at the bottom of their screen during advertisements, they will be redirected to the brand’s website on their connected desktop or mobile device — without interrupting their viewing session on the Connected TV.

Pawar writes, “Advertisers can also take advantage of the Conversion Lift beta on TV screens to get actionable results in real time. Conversion Lift measures the impact of YouTube ads on driving user actions, such as website visits, sign ups, purchases and other types of conversions.”

The benefits offered by advertisement on CTV are many, and there might be a high price to pay for it. Reports point out that the Cost Per Mille on YouTube on Connected TV is higher than other platforms. But advertisements on YouTube on Connected TV give more bang for the buck, resulting in lower Cost-Per-Completed-View (CPCV) as YouTube consumers view up to 95 percent of the CTV ads.

More Reasons Why Brands Must Advertise on Connected TV

Connected TVs and YouTube Content Creators

A rarely discussed but relevant topic is how would the rise of YouTube on Connected TV impact creators and content. YouTube and Google have published a lot of content regarding YouTube on Connected TV but have seldom touched upon the content creator aspect, except the video YouTube Creators on Connected TV.

With YouTube consumers watching videos on Connected TV spending more time on videos, will shorter videos become irrelevant for the large screen? Will watching videos on Connected TV, which have high resolution, reward only those content creators who publish high-quality videos? The questions are many, but answers are presently unavailable.

YouTube creators are seeing connected TV’s viewership share increase‘ in Digiday points out, “If creators were to see that CTV views rake in more revenue than views on other devices, they would be more incentivized to make bigger changes to adapt their YouTube strategies to the bigger screen. Those changes could include further extending the lengths of their videos, enhancing their videos’ production quality or adjusting the pace of their videos because it may be easier to maintain a CTV viewer’s interest. But first creators would need to know those changes would pay off.”

Connected TV is the Future

Veoh Founder, Dmitry Shapiro, spoke of “Internet TV” as far back as in 2007. In the video Veoh Founder: Future of Video on the Web is “Internet TV”, Shapiro says that YouTube does not allow a person to enjoy videos as a couch potato. YouTube has managed to combine its technological prowess with Connected TV’s opportunities to make it possible for video consumers to enjoy YouTube as a couch potato. For brands, the fusion of YouTube viewership and TV presents a possibility to precisely target customers who hold more promise of emerging out successfully through the funnel than their finicky smartphone counterparts.

Are you looking for a reliable partner to launch Connected TV YouTube advertising campaign? Contact Touchstorm today! Our certified YouTube experts will help you dominate YouTube on Connected TV.