As more people cut the cord to cable and watch TV through streaming services, financial institutions need to think outside the traditional broadcast box to reach their customers and prospects, especially if they want to connect with millennials and Gen Z.
Connected TV (CTV) isn’t exactly brand new. Still, the notable uptick in streaming service consumption and interest combined with the maturation of the industry infrastructure has made CTV even more appealing.
As with many new advertising methods for financial institutions, there can be a bit of a learning curve — from the basic definitions to the practical applications — to take marketers from the promises of the technology to realizing the real returns.
What is CTV?
CTV is a device that connects to or is built into a TV to stream video content.
Some examples of CTVs include:
- Apple® TV
- Amazon® Fire TV
- Google® TV
The increased popularity of CTV has resulted in the practice known as “cord-cutting.” This refers to subscribers abandoning their traditional satellite and cable subscriptions to exclusively use these streaming or video on demand (VOD) forms. Interestingly, a study has shown that the number of cord-cutters will increase by 82% by 2023.
Is that the same as OTT?
The distribution of TV programming and videos directly from the internet is known as over-the-top (OTT) – regardless of the device you use to get it. Users don’t need to subscribe to a typical cable or satellite provider to access this content. They may watch it on a variety of devices, including tablets, phones, laptops, desktops and televisions.
The video is presented to the viewer in the form of streaming or video-on-demand (VOD). Netflix®, Amazon® Prime Video, SlingTV®, YouTube® TV, and Hulu® + Live TV are great examples of OTT services. Various networks and mass media have also launched their OTT services, such as Peacock®, HBO® Max, and Disney+®.
CTV vs. OTT advertising: what’s the difference?
CTV devices and OTT programming are two common ways to access programs and videos. However, they’re easily confused. And when you add linear TV – aka “traditional TV” – to the mix, the water becomes even more murky.
Let’s highlight a few pointers to assist you in understanding the distinctions between CTV, OTT, and linear TV. Understanding the differences between the three terms will definitely help you build your advertising plan in the same language as everyone else.
- CTV is a customer-owned, internet-connected gadget that allows them to watch TV/video content online. It might be a smart TV, a game console, or any internet-connected gadget. Although the device may be used to stream OTT material, the phrases are not interchangeable.
- OTT refers to the transmission of programming online, typically via streaming or video on demand (VOD) in addition to traditional network providers.
- Linear TV is the traditional arrangement in which an audience watches a television show as it airs on a particular channel. The user can watch the show by subscribing to a cable or satellite service or using an antenna.
Benefits of CTV and OTT advertising
With both CTV and OTT advertising, you may reach viewers who are not reachable through traditional Linear TV (i.e., antenna, satellite and cable). This audience includes the increasing number of cord-cutters or those who no longer subscribe to traditional cable or satellite providers. With more CTV and OTT viewing, comes more opportunities for advertisers to precisely target their audience at the right moment instead of just covering anyone watching a show in a metro area.
CTV for Financial Institutions
CTV viewership has increased in recent years and shows no signs of declining. This has sparked interest in the marketing industry about the possibilities of CTV as an advertising medium. And the financial industry isn’t an exception. Since 80% of households have at least one connected device, CTV represents promising – and often underutilized – marketing media for banks and credit unions.
To get more details about the opportunities in streaming TV and CTV advertising for financial institutions, watch check out this webcast on demand.