NuVoodoo’s Guide to Connected TV (OTT) Advertising in 2025

MOC article image NV Jan 2025

This article provides a comprehensive overview of the Connected TV (CTV) advertising landscape, covering key trends, opportunities, and strategies for success. You’ll gain valuable insights into:

  • The Rise of CTV: Understand the shift from traditional TV to streaming and why CTV is dominating the market.
  • Industry Shifts: Stay informed about the latest trend in Live and On-Demand streaming, including the Disney-Fubo merger and the rise of addressable and shoppable TV.  Learn the distinctions between these models and how to leverage them for your advertising goals.
  • AVOD and its Advantages for Advertisers: Explore the rise of ad-supported streaming and its impact on the advertising industry.
  • NuVoodoo’s Tech-Driven Targeting: Discover how CTV enables precise audience targeting and advanced AI-assisted campaign management.
  • NuVoodoo’s Expertise: Learn how our research and services can help you navigate the CTV landscape and maximize your ad campaigns.

We’ll equip you with the knowledge and tools to reach your target audience effectively, drive engagement, and achieve your marketing goals.

Connected TV Explained

The TV world is undergoing a dramatic transformation. Viewers are abandoning traditional cable and embracing streaming, creating a dynamic and competitive environment for advertisers. Connected TV (CTV) has emerged as a dominant force, offering a unique blend of reach, engagement, and measurability. Recently, a major shakeup further underscores the rapid evolution of this space: Disney is merging Hulu + Live TV with Fubo!

Let’s dive deeper into the key trends shaping the CTV landscape…

Smart/Connected TV (CTV) advertising is booming, and it’s reshaping how brands reach audiences. Traditional TV viewership is declining as viewers ditch cable and satellite for streaming platforms like Netflix, Hulu, Disney+, etc. This has fueled the “Streaming Wars” as platforms compete for subscribers.

CTV includes any internet-connected device that streams video to a TV, like smart TVs, streaming devices, and gaming consoles. With the proliferation of streaming services, CTV has become the go-to entertainment source for millions.

Live streaming and on-demand video represent two distinct approaches to delivering content and engaging audiences. Live streaming captures the immediacy and excitement of real-time events, like sports or breaking news, fostering a sense of urgency and community among viewers. On-demand video, on the other hand, provides viewers with the flexibility to access pre-recorded content at their convenience. This model allows advertisers to precisely target audiences based on demographics, viewing habits, and content preferences. On-demand platforms also offer more control over ad placement and brand safety.

For advertisers, the choice between live streaming and on-demand depends on specific goals and target audience. Live streaming excels at mass reach, building brand awareness, and fostering community, while on-demand offers greater precision in reaching specific viewer segments.

Advertising-based Video On Demand Takes Center Stage

Many streaming services now offer ad-supported plans (AVOD) to attract cost-conscious viewers. This has opened up a massive inventory for advertisers. Think Hulu with ads, Netflix’s Basic with Ads plan, and platforms like FreeVee, Tubi, and Pluto TV.

Tech-Driven Targeting and Measurement

AVOD allows for automated ad buying and precise targeting, similar to online advertising. Advertisers can use data like demographics, viewing habits, and interests to reach specific audiences.

Forget outdated TV ratings! CTV offers granular data on ad impressions, completion rates, and even website visits or app downloads driven by ads. This enables better optimization and ROI tracking.

Multi-Device Viewing

People watch content on various devices – smart TVs, phones, tablets, laptops. CTV advertising allows brands to reach audiences across these screens. Moreover, CTV ads are becoming more interactive, with features like QR codes, shoppable ads, and personalized messaging. This boosts engagement and drives conversions.

Industry Shifts

Advertisers are shifting budgets from traditional TV to CTV, attracted by its targeting capabilities, measurement, and reach. Even premium streaming services like Netflix, Amazon Prime Video, and Disney+ have introduced ad-supported tiers, recognizing the revenue potential.

What’s Next?

  • Addressable TV: Delivers highly personalized ads to different households based on their individual profiles.
  • Shoppable TV: Viewers can purchase products directly from their TV screens, blurring the lines between entertainment and shopping.

The Disney-Fubo Merger: A Game Changer

This unexpected merger combines two major players in the live TV streaming market, creating a powerful new entity with a combined 6.2 million subscribers. While both services will remain available separately, the combined entity will command a larger portion of the CTV market, potentially influencing pricing and content offerings. The merger brings together Hulu + Live TV’s strength in entertainment and Fubo’s focus on sports and news, potentially creating a more comprehensive and competitive offering. Advertisers should be able to place on-demand campaigns on Hulu & Disney Plus in conjunction with the more immediate medium of live streaming in one turn-key platform once the merger is optimized.

Why CTV Demands Your Attention (and Your Ad Dollars)

  • Captive Audience: CTV viewers are highly engaged, often enjoying ad-free or ad-lite environments, making them more receptive to advertising. Advertising view rates are close to 100% on TV screens.
  • Precision Targeting: Unlike traditional TV’s broad strokes, CTV allows for granular targeting based on demographics, interests, and viewing habits.
  • Data-Driven Optimization: CTV campaigns offer real-time performance tracking, enabling continuous optimization and maximizing ROI.
  • Elevated Brand Experience: CTV ads often appear within high-quality content, enhancing brand perception and recall.

NuVoodoo’s Insights: Unveiling the Attention Economy

At NuVoodoo, we’re passionate about understanding consumer behavior in the digital age. Our recent Digital Media Study, conducted in the second half of 2024 with over 3,000 respondents aged 14-64, provides valuable insights into where viewers focus their attention.

How often do you pay attention to things advertised on: [6-point scale, 1=Never, 6=All the time, % 5-often + 6-always shown, ad-channel descriptions summarized here for brevity]

Here’s what we discovered:

  • YouTube Reigns Supreme: Nearly four in ten respondents, particularly men and millennials, reported paying close attention to ads on YouTube. A plurality of NuVoodoo YouTube campaign views are now on TV screens, with view rates much higher than those on computers or mobile devices.
  • CTV Holds its Own: With 35% of respondents paying close attention to ads on ad-supported streaming platforms, ad-supported streaming video ranks 3rd of 21 advertising channels tested.

The NuVoodoo Advantage: Your Connected TV Planning and Execution Specialists

Navigating the CTV landscape requires expertise and a deep understanding of consumer behavior. Most competent agency partners promise these basics:

  • The ability to target your ads with laser precision.
  • Ensure your message is seen and remembered.
  • Get the most out of your ad spend by combining the power of CTV and display.

Here’s how NuVoodoo makes sure  these promises are actually delivered:

  • Audience Identification: We’ll help you pinpoint your ideal viewers on CTV platforms. We offer clients access to all of our ongoing media research, customized brand perceptuals, and market entry studies.
  • NuVoodoo AI-Matched Audiences: Think of it as a super-powered audience targeting tool. Instead of just basic demographics, AI-Matched Audiences uses keywords, website traffic patterns, and CRM data to model and identify households most likely to be interested in your products or services. This means your ads are shown to the right people, not just any people.
  • Household Retargeting with Video and Display: This is all about maximizing impact and cost-efficiency. When someone watches your video ad all the way through on their CTV device, NuVoodoo’s household IP address-matching ad tech kicks in. It recognizes that engaged household and starts showing follow-up videos and related display ads on other household devices, like phones and laptops. This reinforces your message across multiple touchpoints, keeping your brand top-of-mind. Plus, by incorporating cheaper display ads, you can boost frequency without increasing costs significantly.

Ready to Conquer the CTV Frontier?

Partner with NuVoodoo and unlock the full potential of CTV advertising. Contact us today (tellmemore@nuvoodoo.com) to learn how we can transform your brand’s presence on the biggest screen in the house. Let’s make your brand a CTV superstar.