Jump on this new TV outreach now
Connected TV or Over-the-Top TV has been a growing trend in the last year. This type of TV viewing should not be a big surprise, as consumers take more control of how and when they watch TV. What may surprise you, however, is who is watching. The 55-plus segment makes up more of the Connected TV audience than the under-25 viewers. In fact, 60% of total viewers are age 35 and up, with 35% falling in the 45-69 year-old casino marketing “wheelhouse.” Another surprise is that over 30% of all TV programming is viewed via Connected TV, compared to 38% live TV and 16% DVR. It is the second largest way that TV is watched today.
Many of our clients ask the question, “Are our older, less tech-savvy consumers responding to digital marketing, and will that result in activity on our casino floor?” With the largest two growth segments in smartphone usage being the 55-64 and 65-plus age groups making up over 25% of all users, the answer is yes. This sweet spot target market for casino patrons is embracing smartphone technology and, in turn, viewing TV online. These two behaviors are becoming mainstream in how audiences consume media and just a part of everyday life. Just as mobile marketing has become a necessary inclusion of digital marketing due to its dominant usage, Connected TV in the near future will also become a necessary way to purchase a TV viewing audience.
Advertising on Connected TV is a bit of a hybrid. It is purchased like digital marketing by impressions, but viewed like traditional TV. The format allows advertisers to take advantage of a captured audience to deliver a traditional thirty-second TV message. Currently, Connected TV programming has traditional commercial breaks just like live TV, but for now, a little less of them and they cannot be skipped. Unlike DVR viewing, the full length of the commercial has to be viewed, making this an ideal medium. In terms of targeting, demo targeting to a particular age group is possible, but targeting down to actual programming is currently not available. As more targeting capabilities become part of the medium, the advertising dollars in this tactic should skyrocket.
With any new technology or advertising medium, the question becomes, when should we jump in? In terms of Connected TV, the answer is now. Whether you are looking for Connected TV to supplement an existing TV schedule or be the only TV outreach you have, this medium represents a lower out-of-pocket cost to reach a valuable audience. The powerful blend of the visual and audio message that TV provides is something that every advertiser hopes to include as part of their media mix. However, with TV’s higher out-of-pocket cost, it is not something that every advertiser can afford. Connected TV can change all of that, as the cost of entry follows a lower out-of-pocket digital cost versus higher traditional media costs.
As new formats, devices and platforms come online, there will be more opportunity for cost-effective guest touchpoints through digital marketing. Advertising spend in digital video has grown by double digit percentages, and that trend is projected to continue over the next four years. As many casinos are beginning to work through their FY2019 budget, it is important to understand how these types of shifts are projected to change how media dollars should be budgeted throughout the year.
Understanding the effectiveness of each media channel has become paramount to efficiently allocating your media budget. Now is the time to consider Connected TV as part of your budget moving forward.