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Digital advertising on connected TVs: the new strategic territory for brands and advertisers

The evolution of connected TVs (CTV) is reshaping how content is consumed and transforming the digital communication landscape. Unlike conventional television, this new environment allows precise segmentation based on browsing behavior, viewing history, and shopping interests. In this context, companies that invest in integrated strategies, combining artificial intelligence, interactivity, and retail data, are achieving better results.

According to Bruno Belardo, VP of Sales at US Media, CTV is no longer an isolated channel but takes center stage in a broader digital journey. ‘CTV advertising needs to be connected to different consumer touchpoints. When well-structured, it combines qualified reach and technology to deliver relevant messages at the ideal moment,’ he says.

The growth of the AVOD model (Advertising-Based Video on Demand), where users accept watching free content with ad inserts, reinforces this scenario. Today, four in every ten TV households in Brazil use streaming platforms, according to Pnad Contínua/IBGE. Meanwhile, Comscore reports that 32% of viewers seek more information online after being impacted by ads on smart TVs.

Precision, context, and technology as alliesUnlike open TV, CTV enables large-scale personalization. It’s no longer about reaching a broad audience with the same message but delivering the right message to the right person at the right time. This maximizes impact and advertising ROI. Behavioral data, AI, and machine learning combine to create adaptable, dynamic ads that consider each user’s viewing history, preferences, and consumption context,’ comments the executive.  

On the other hand, the fragmentation of the CTV market, with its wide range of devices and platforms, makes audience measurement a challenge. Ensuring ads reach the target audience requires advanced technological solutions. ‘Features like contextual data, device synchronization such as Household Sync, and measurement tools like Nielsen Streaming Signals are essential to optimize campaigns and assign demographic information to viewers accurately,’ adds Belardo. 

‘Whether it’s a food ad shown during a cooking show or a sports brand campaign during live broadcasts, contextual personalization creates greater audience identification,’ explains Bruno. Currently, 45% of users expect ads to reflect their personal tastes and daily habits, according to Comscore data.

Another competitive advantage comes from combining CTV and Retail Media. By linking consumption data with digital behavior, companies can create more precise and highly measurable campaigns. Solutions like Shoppable Ads, which allow viewers to access offers via QR codes on the screen itself, are gaining traction by shortening the path from impact to purchase. No wonder GroupM projects that by 2025, global Retail Media investment will surpass traditional TV advertising, reaching $176.9 billion and accounting for 15.9% of global ad spend.

Integrated media and channel complementationFor Bruno Belardo, CTV’s true potential lies in its ability to work alongside other channels. ‘Today, no single medium can cover the entire consumer journey alone. The combination of different formats—from traditional TV’s mass reach to CTV’s precision, Retail Media’s conversion, out-of-home media reinforcing brand presence, and digital measurement—is what ensures more efficient campaigns aligned with real audience behavior,’ he states.

With 78% of Brazilians with access to connected TVs consuming content daily (Connected TV Brazil Survey, 2023), the current mission is capturing the attention of an increasingly demanding audience. CTV has already established itself as a strategic tool for brands looking to combine creativity, data, and technology to create real, measurable impact.

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