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

The evolution of connected TVs (CTV) is reshaping the way content is consumed and transforming the digital communication scenario. Unlike conventional television, this new environment allows precise segmentations based on browsing behaviors, viewing history and shopping interests.In this context, companies that bet on integrated strategies, combining artificial intelligence, interactivity and retail data, have achieved better results.

According to Bruno Belardo, VP of Sales US Media, CTV ceases to be an isolated channel to take a leading role in a broader digital journey. “A advertising on CTV needs to be connected to different points of contact with the consumer. When well structured, it combines qualified reach and technology to deliver relevant messages at the ideal time”, he says.

The advancement of the AVOD (Advertising-Based Video on Demand) model, in which users accept to watch free content with advertising insertions, reinforces the scenario. Today, four out of ten homes with television in Brazil use streaming platforms, according to Continuous Pnad/IBGE. Comscore points out that 32% of viewers look for more information online after being impacted by ads displayed on smart TVs.

Precision, context and technology as allies“Unlike open TV, CTV enables large-scale personalization.It is no longer about reaching a large audience with the same message, but rather delivering the right message, to the right person, at the right time.This maximizes the impact and return on advertising investment. Behavioral data, AI and machine learning they combine to create adaptive and dynamic ads, taking into account the viewing history, preferences and consumption context of each” user, 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 that ads reach the target audience requires advanced technological solutions.“Resources such as contextual data, synchronization between devices such as Household Sync and measurement tools such as Nielsen Streaming Signals are essential to optimize campaigns and assign demographic information to viewers with” accuracy, adds Belardo. 

Whether a food ad is displayed during a culinary program or a sports brand action during live broadcasts, personalization by context generates more identification with the” audience, explains Bruno. Currently, 45% of users expect the ads to reflect their personal tastes and everyday habits, also according to a Comscore survey.

Another competitive differential arises from the union between CTV and Retail Media. By crossing consumer data with digital behavior, companies can mount more assertive campaigns with high measurement power. Solutions such as Shoppable Ads, which allow the viewer to access offers via QR Code on the screen itself, have gained strength by shortening the path between impact and purchase. No wonder, the projection of GroupM is that in 2025, the global investment in Retail Media exceeds that of traditional television advertising, reaching US$176.9 billion and representing 15.9% of the worldwide advertising budget.

Integrated media and channel complementationFor Bruno Belardo, the true potential of CTV is in its ability to act together with other channels. “Today, no media alone can manage to follow the entire consumer journey. The combination of different formats, from the massive reach of traditional TV to the accuracy of CTV, through the conversion of Retail Media, out-of-home media reinforcing the presence of the brand in the daily consumer and the measurement of digital, is what ensures more efficient campaigns and connected with the real behavior of the” audience, he says.

With 78% of Brazilians with access to connected TVs consuming content with daily frequency (Search TV Conectada Brasil, 2023), the current mission is to capture the attention of an increasingly demanding audience. CTV has already established itself as a strategic piece for brands that want to combine creativity, data and technology to generate real and measurable impact.