Defining smart TV advertising

Before we start, let’s quickly define what we mean by smart TV advertising. A smart TV, also known as a connected TV, is a television set with integrated internet capabilities that allow users to access streaming services, apps, and online content directly from their TV screens. Smart TV advertising means delivering targeted advertisements to viewers through these connected devices.

The main difference between linear TV advertising and smart TV advertising is delivery. With the former, ads are delivered according to a set schedule, regardless of whether the user is watching TV at that moment or not. With the latter, ads only appear when the user interacts with content on their smart TV device. Now, let’s examine the benefits of running ads on smart TV.

1. Wide reach

Smart TV advertising allows your brand to reach a wide and diverse audience. As more and more households adopt smart TVs, the potential reach of these advertising campaigns continues to grow. By 2026, smart TV ownership is set to exceed 1.1 billion households worldwide. Unlike traditional TV advertising, which is limited to specific time slots and channels, smart TV ads can be delivered to viewers across various streaming platforms and apps, maximising exposure.

2. Targeted advertising

One of the key benefits of smart TV advertising is its ability to deliver highly targeted ads to specific audience segments. By leveraging data analytics and user insights, you can tailor your ads based on factors such as demographics, interests, and viewing behaviour.

This approach ensures that your ads are shown to the most relevant audience, increasing the likelihood of engagement and conversion. Smart TVs often host multiple user profiles, allowing advertisers to specifically target different audiences within the same household and on the same device.

3. Interactive engagement

Smart TV advertising offers interactive features that traditional TV ads lack. Viewers can engage with ads through clickable elements, interactive content, and even voice commands. This interactive experience not only captures viewers’ attention but also allows them to interact with brands directly, driving deeper engagement and brand awareness. In the last year, interactive CTV campaigns drove a 5.42% engagement rate, compared to a rate of 0.97% for mobile and PC.

4. Measurable results

Unlike traditional TV advertising, which can be challenging to measure and track, smart TV advertising provides you with detailed analytics and performance metrics. From impressions and views to engagement and conversions, advertisers can accurately measure the effectiveness of their campaigns and optimise them in real-time for better results. This data-driven approach enables brands to make informed decisions and maximise their ROI.

5. Cost effectiveness

Smart TV advertising is a cost-effective alternative to traditional TV advertising. With flexible budget allocation and pricing models, advertisers can optimise their spending and achieve their marketing objectives within their budget constraints. Additionally, the ability to target specific audience segments reduces wasted ad spend, making smart TV advertising a cost-efficient option for brands of all sizes.

Taking the next step

If you’re ready to start exploring smart TV advertising for your business, try exploring Roku Ad Manager. Roku is the #1 TV streaming platform in the U.S. (by hours streamed) and offers advertisers a simple self-serve interface to create sponsored content. Roku Ad Manager is a partnership between Roku and DanAds, the world’s leading provider of self-serve advertising technology. You can learn more about how DanAds empowers advertisers with our case study library, or by subscribing to our newsletter. Thanks for reading!