Why Connected TV Needs to Be a Part of Modern Marketing Strategy

Authored by Mangesh Kaurase, Director, Biddable, GALE India

In an era defined by rapidly evolving media consumption habits, Connected TV (CTV) has emerged as a transformative force in marketing. As audiences continue to shift from traditional television to streaming platforms, CTV has become an essential tool for brands aiming to reach digitally savvy consumers.

With strategic advantages such as advanced targeting, real-time insights, and cross-platform reach, CTV is paving the way for deeper engagement and more precise advertising.  This positions it as a cornerstone of modern marketing strategies. According to a report by VDO.AI, CTV advertising in India is set to hit $395 million by 2027, with a CAGR of 47%. This remarkable growth highlights the need for modern marketers to harness the potential of this rapidly expanding medium.

Data-Driven Audience Reach

The industry continues to grapple with the issue of cookies and what will or won’t be available in the future. But cookies were never used in CTV; the authenticated verifiable data powers brands to communicate the right message to the right audience. For marketers, first-party data serves as a valuable source to deliver tailored messages. The ability to upload first-party and third-party data fuels the biggest ad-buying opportunities for brands. The open marketplace is also gaining traction for its effectiveness in targeting the right audience.

Brand Interaction in Ad & Non-Ad Models

The emergence of diverse subscription models on CTV platforms is transforming how brands engage with audiences. Many platforms now offer tiered options, including lower-cost subscriptions with limited ads and free access supported by regular ad displays. Research indicates that ad tolerance on CTV is significantly higher, driving the popularity of ad-supported models among cost-conscious viewers eager to save money while enjoying content. Non-skippable ads on CTV encourage longer viewer engagement and improve ad recall. By catering to both ad-supported and ad-free audiences, brands can unlock greater flexibility to craft personalized and impactful experiences, maximizing their reach and resonance in the evolving CTV landscape.

YouTube's Role in Growing CTV Inventory

YouTube has become synonymous with entertainment, offering something for everyone—whether you are looking to relax, learn, or laugh. It’s fascinating to see how YouTube has evolved from being a platform primarily accessed on mobile devices and desktops to dominating our living rooms. What was once a personal screen experience is now a shared one, bringing families and friends together. It is still a sleeping giant in the CTV ecosystem, and it holds immense potential for marketers seeking to reach broader audiences. 

Persona Targeting for Relevant Brand Experiences

CTV is revolutionizing personalization in advertising, prompting brands to shift budgets from linear TV to capitalize on its growing household popularity. With advanced targeting capabilities, CTV empowers brands to align messaging with specific viewer personas, delivering highly relevant and impactful experiences. This data-driven approach leverages insights from logged-in users to create connections and foster stronger brand loyalty.

Demographic targeting remains essential for reaching the right audience with tailored messages. By building detailed user profiles based on age, location, and interests, marketers can focus their efforts on audiences most likely to engage with their products. Behavioural targeting enhances precision by analyzing activities such as search history and past purchases to deliver marketing content that resonates with individual preferences. Together, these capabilities make CTV an indispensable tool for modern, data-informed advertising

 CTV Value Through Research-Backed Insights

Is CTV living up to its promises? As with any marketing channel, early adopters often grapple with uncertainty due to lack of robust, data-backed evidence. However, comprehensive studies by Ipsos and Nielsen highlight CTV’s ability to drive key brand metrics, such as awareness, consideration, and customer loyalty, proving its strategic value. 

CTV is rapidly gaining momentum due to its targeting capabilities and actionable data. Marketers increasingly recognize its potential to combine customer insights with creative storytelling, delivering impactful experiences directly into viewers’ homes.

Delivering Interactive Ads on Full-Screen

As the CTV medium evolves, opportunities to experiment with diverse ad formats are also expanding. Gone are the days of one-size-fits-all, passive ads on linear TV. CTV empowers brands to craft dynamic, interactive content that not only catches the viewer’s eye but also holds their attention.

What sets CTV apart is its ability to deliver precise and actionable data. With data as fuel, CTV advertisers can identify relevant audiences and deliver targeted ads, connecting creativity, data, and audience engagement. Additionally, CTV’s integration with other marketing channels allows advertisers to stay on a customer’s radar long after they have seen an ad, remarketing to them across platforms and creating a cohesive brand experience.

Challenges in CTV Marketing

With all the benefits that exist in CTV, there are some challenges marketers must navigate to be successful. For example, connected TV devices operate on various operating systems (OS) like Android TV, Roku, Amazon Fire TV, and Apple TV. New entrants like The Trade Desk with its Ventura CTV OS are also adding to the mix. This fragmented OS ecosystem creates unique challenges for brands and marketers, particularly when it comes to optimizing advertisements. To ensure ads remain interactive and engaging across platforms, marketers must tailor their strategies to work seamlessly on each operating system.

Rising ad fraud also poses challenges for advertisers; bots and fake devices are used at scale to manipulate viewership numbers, deceiving the brands to pay for unviewed ads. Inconsistent measurement mechanism is the next big issue that marketers are grappling with; with this area consisting of a complex interconnected ecosystem of publishers, platforms, and devices, it needs significant improvement and standardization going forward. Finally, another critical challenge is data privacy. As audiences grow more aware of how their data is being used, brands must prioritize transparency in data collection and remain compliant with evolving privacy laws.

How The Market Evolved in 2024 and What Lies Ahead

2024 marked a year of maturity in CTV marketing, with significant experimentation on both the ad buyers' and sellers' sides. Marketers spent time figuring out how their CTV spends stacked up against linear TV investment. Looking ahead to 2025, the momentum is set to accelerate, fuelled by increased ad budgets and the rising popularity of live sports. Intuitive programmatic tools will further streamline the ad-buying processes, positioning CTV as a dominant force in the advertising landscape. The future is bright for this dynamic medium, and I’m excited to see where it leads. Those who overlook CTV risk missing out on a significant opportunity to meaningfully engage with audiences and drive growth.

 DISCLAIMER: The views expressed are solely of the author and Adgully.com does not necessarily subscribe to it.
Also Read: Why Social Proof is Key for Real Estate Brands