Connected TV is changing the game in the digital entertainment industry. It offers new opportunities for brands to target their consumers in a more personalized and effective way.
As such, the rise of connected TV is a wake-up call for marketers to adapt to changes in the industry.
As this unparalleled technology continues to evolve, brands that are willing to embrace innovation will be the ones that thrive in the future of digital entertainment.
So what does the future of digital entertainment look like, particularly as it relates to connected TV growth? We’ll take a closer look at that in this post.
Explaining the Growth of Connected TV
Over the past few years, connected TVs have gained some serious traction — and there’s some compelling evidence of its growth. According to a Nielsen report, the number of US households with connected TVs has significantly increased, with almost 85% of households in the US having at least one TV-connected device.
Part of this growth is due to the rise of streaming services such as Netflix, Hulu, and Amazon Prime Video. These services have gained immense popularity, largely due to their convenience, flexibility, and affordability. All you need is a connected device and an internet connection — and then you have access to a vast library of content you can watch at your leisure.
Another factor contributing to the growth of connected TV is the increasing number of devices available. Smart TVs and streaming boxes such as Roku, Apple TV, and Amazon Fire TV offer users a seamless streaming experience. Many of these devices now often come pre-installed with popular streaming apps such as Netflix, Hulu, and Amazon Prime Video. As a result, users don’t need to buy a new device to readily have access to their desired content.
With connected TVs, users can watch what they want, when they want it, and where they want it. Streaming services are recognizing this and tailoring their services to users’ preferences, providing recommended content based on viewing history. This increases engagement and time spent using the services.
Plenty of benefits exist for those of us in the marketing world, too. CTV offers more accessible advertising opportunities than traditional television advertising. Instead of interrupting viewers during a live broadcast, advertising can be integrated into connected TV experiences.
For example, ads can appear before or after a streaming program or appear as a banner ad within an app. This approach is much less invasive than traditional TV advertising and provides a better overall user experience.
What the Future Holds for Connected TV and Digital Entertainment
If you want to stay relevant, reach more customers, and provide an enhanced user experience, embracing CTV is absolutely necessary as it continues to grow. It continues to emerge as an unstoppable force in the digital entertainment industry
So what does that future look like? Here are some elements that will likely come into play:
5G networks are absolute game-changers when it comes to digital entertainment. They provide lightning-fast internet speeds that allow users to stream high-quality video content — all without buffering, the arch-nemesis of home entertainment as we know it.
5G technology, to say the least, is essential for enhanced user experiences on CTV platforms, where users demand high-quality video and audio content. As a marketer, leveraging 5G networks can enable you to provide users with better streaming experiences and drive engagement with your ads.
Artificial Intelligence (AI)
AI is continuing to revolutionize digital entertainment. It enables CTV platforms to personalize user experiences – predicting what users want to watch, and even recommending similar content (Netflix is an excellent example of a company that’s already doing this quite well and has been for some time).
AI also enhances the targeting capability of advertisements, making it possible for marketers to deliver ads that resonate with specific users and enhance their overall experience.
As AI technology continues to evolve, it will make it possible for platforms to deliver more engaging and personalized experiences (tailored to individual users) than ever before.
Virtual Reality (VR)
VR technology is also poised to catapult the digital entertainment industry to new heights.
This technology allows users to feel like they’re part of the action and actively participate in the content they’re consuming.
CTV platforms can use VR to offer users the ultimate immersive experience when watching movies, TV shows, or playing games.
As a marketer, leveraging VR technology can provide users with enhanced experiences that push the boundaries of traditional digital entertainment.
Voice-activated search is a rapidly growing technology that many platforms are already taking advantage of, and for good reason — it has the potential to revolutionize the way users interact with their CTVs.
This makes it easier for users to search for and consume content they enjoy, using simple voice commands. In the world of advertising, leveraging voice-activated search capabilities can help you produce more targeted content that resonates with users and drives engagement with your ads.
Augmented Reality (AR)
Not to be confused with VR (virtual reality), AR is another emerging technology that is set to transform the way users interact with content.
It helps users overlay digital content onto the physical world, creating an incredibly immersive experience. CTV platforms and devices can leverage AR technology to offer users unique experiences when watching movies or TV shows, and, as a marketer, using AR technology can provide consumers with ads that are more engaging, drive conversions, and enhance the overall user experience.
As you can see, the future of digital entertainment lies in our ability to embrace (and anticipate) connected TV growth. By creating highly targeted, relevant ads with the help of some of the emerging technologies described above, marketers can create ads that are highly targeted, highly relevant, and most importantly, highly effective.
Leverage CTV as part of your strategy toolbox today. If you don’t, you risk being left behind in the digital entertainment industry.