Connected TV has changed the way advertisers are using the television to market to consumers.
With Connected TV, advertisers can now accurately target and measure ad performance to ensure a better return on their investment, which is why many auto manufacturers and dealers are shifting their ad spend away from traditional channels like newspapers, radio, and cable TV.
An industry report in 2022 showed that many auto dealers are no longer spending money on paid search. In 2023 dealers are expected to spend more on Connected TV than they will spend on paid search creating a shift that will make Connected TV advertising the number 2 digital channel behind paid banners within the next two years. In addition, the BIA Advisory service forecasts that local CTV spend for auto will rise 80% to $545 million by 2025.
In Canada, Connected TV viewership in has grown, and so has the number of households that cut their cable TV subscription. In 2022, 70% of adults in the country aged 18-44 no longer subscribed to linear TV and 87% preferred targeted ads, while 89% prefer short ads. Canadians aged 18-29 in the country have also switched to a preference for more interactive ads, while 3 in 10 Canadians would prefer shoppable ads. Something that Connected TV advertising can do.
With statistics like this, it is no secret why there is a shift in where the auto sector is spending their digital ad spend. It's clear that this switch is driven by the desire to stand out in an overly saturated market while being able to connect with consumers on the platforms they prefer. More importantly, with the power of Connected TV advertising, the auto sector can accurately target customers with their ads based on individual and household interests, while also being able to track conversion rates and even attributing foot traffic back to the ad.
The brands that are already leveraging Connected TV advertising are sending ads to targeted homes at specific times across premium inventory to aTV audience who are already two screen users that will happily scan a QR code.
The time to switch gears has come for auto brands in Canada. It's time for more dealers and manufacturers to discover how ALPHA Konnect is connecting brands with millions of Canadians streaming TV today!
Carlos Guevara is the Marketing Director at APEX Mobile Media and previous host of the podcast "In Search of Good Data." He has also helped various organizations in the private and non-profit sector to become more customer-centric with the use of enriched data and modern marketing and advertising technology and strategies.