There is no doubt that Connected TV (CTV) is a key growth area within the video advertising landscape. According to Emarketer, ad spend is projected to reach $33.35 billion in 2025 and that number is expected to increase to $46.89 billion in 2028. Although social media currently dominates in video ad spending for marketeers with Meta forecasting video ad revenues of over $48 billion by 2026. CTVs growing share of the video advertising market shows how important CTV is as a strategic channel for advertisers.

When video streaming services like Netflix, Disney+, etc saw their subscription service growth slowing, they introduced reduced priced subscriptions supported by advertising. In fact, according to Statista, in May 2023, for the first time, the number of CTV households streaming ad-supported services in the U.S. was higher than that of non ad-supported content in May 2023. So while the audience growth rate of subscription-based services has slowed down, the number of ad-supported video streaming viewers has increased at a faster pace, opening up new opportunities for advertisers to reach the CTV market.

Viewers stream CTV content on many devices including smart TVs, laptops, tablets, games consoles and of course mobile. The focus of this article is to examine smartphone usage for viewing CTV content and the importance of video advertising to mobile devices.

Benefits of Smartphones and CTV content consumption

Smartphones are faster: To view content on a Smart TV, first you have to turn it on, wait for it to connect to the internet, use your remote control to open the streaming app, use many clicks to navigate the app using the remote to find the content you want to watch. Whereas with a smartphone, you open the app, quickly scroll to or type in what you want to watch, tap play and you can instantly watch the content.

Watch out of home: While a Netflix & chill evening is spent on a large screen SmartTV. When traveling, on holidays or long commutes, mobile devices allow viewers to stream and watch CTV content outside of the home. With TV to mobile transitions, viewers can start watching something on their TV and pick up the next day on their phone while commuting, or or vice versa.

Smartphone as a control hub: Mobiles can be used to seamlessly cast a streaming app’s content onto a larger screen. Smartphones can also be used as TV remotes with many CTV streaming apps using voice controls (via Siri, Google Assistant, Alexa), and swipe-to-TV functionality.

Blurring the lines between short and long-form video content: Platforms like Instagram, TikTok and YouTube are making short-form video content feel like long-form content by pushing vertical video content on smartTVs. This content is hugely popular as well as being integrated into the entertainment lifestyles of Gen Z and Millennials, we can expect to see more mobile native content to get adapted for CTV.

How mobile CTV ads are more impactful for advertisers

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Watching ad breaks on a smartTV is a ‘passive’ ad experience. Advertisers try to create movie style or TV style content to persuade you to buy their products or drive brand awareness. It is described as a ‘lean-back’ experience. Additionally, when people are viewing at home on their smartTV it begs the question, how effective is large screen advertising really? Because during an ad break they will do one of several things:

  • Stay put on the sofa and watch the ads
  • Move away from the screen to do something, like make a cup of tea until the ads are over
  • Have a chat with their fellow viewers ignoring the ads
  • Wait until a ‘Skip ad’ button appears, to skip the ad and get back to the content
  • Pick up their mobile to check notifications

Mobile interactive ad experience

Now on mobile it’s a more ‘interactive’ ad experience. Imagine the same scenario when a viewer is watching the content while commuting on the train, catching up on a series they didn’t finish the previous evening on their smartTV. During an ad break served to them on their mobile device they are a fully captive audience and will exhibit the following behavior:

  • Watch the ad in full, while waiting to return to continue watching streamed content
  • If an ad is of interest to the viewer, with one tap the viewer can be taken to the advertisers landing page or website within the same device. Automatically pausing the content as they investigate the product or brand advertised in more detail
  • If the product is an app it can be a one click install to download the product to their phone
  • They can instantly shop and if they want to purchase a product, delivery details can be autofilled in and paid for with one click via Google or Apple Pay, or other mobile payment solutions
  • If the goal is for the advertiser to get end users to join a mailing list, again email details can be autofilled
  • First-party data can be leveraged by the ad serving platform to show relevant ads, or retargeted ads to the user, to target them with products of interest
  • More first-party data will also be generated by the end users interaction with the ad break, providing more data for the CTV ad server to add to the end users profile. EXADS provides a large range of advanced targeting options including Custom Key Value Pairs, allowing your business to monetize and segment this first-party data.

Then the end user can return to watch the content.

Second screen enhanced ad viewing experiences

Mobile devices will undoubtedly become second screens to streamed CTV content, an important strategy involves synchronizing CTV ad exposures with targeted mobile follow-ups, effectively creating a cohesive, multi-screen customer journey. This “double push” or retargeting approach allows advertisers to capitalize on the brand awareness generated by CTV and translate it into measurable actions on mobile devices.

  • QR codes: Displaying a prominent QR code during a CTV advertisement offers a direct call to action. Users can quickly scan the code with their smartphones to access exclusive offers, product information, website landing pages, or even download relevant apps. This provides an immediate pathway for engagement and conversion.
  • Push notifications: For users who have previously interacted with the brand’s mobile app, CTV ad exposure can trigger personalized push notifications. These notifications can reinforce the CTV message, present special deals related to the advertised product, or provide reminders to complete a desired action, such as visiting a website or making a purchase.
  • Retargeted social media ads: Based on CTV ad viewership data, advertisers can retarget users with relevant ad creatives on social media platforms. This ensures consistent brand messaging across different touchpoints and allows for more interactive ad formats that encourage clicks, shares and engagement.

A better CTV advertising experience

Similarly, imagine watching a car advertisement on television. This initial exposure can trigger a series of follow-up interactions on the viewer’s mobile device:

  • Interactive 3D tours: Instead of static images, users could receive an interactive 3D tour of the car model they just saw on TV, allowing them to explore its features and interior in detail.
  • Location-based offers: By leveraging location services, advertisers can present users with special offers or incentives specifically for the nearest car dealership, encouraging a physical visit and test drive.
  • Time-synced reminder CTAs: Advertisers can even synchronize mobile reminder ads with the user’s TV viewing schedule. For instance, if a user frequently watches a particular program where the car ad airs, they might receive a follow-up ad on their phone shortly after the show ends, reinforcing the message and providing a direct call to action, such as scheduling a test drive.
  • **Next-gen ad formats: **Interactive ad experiences for example, choose your ending style ads, shoppable ads allowing viewers to tap their smartphone to buy while watching a smartTV ad, gamified content tied to what’s on the big screen, AI ads which Netflix is currently testing.

Additional mobile content to monetize with CTV advertising

By offering additional content to viewers on mobile while they watch content on their smartTVs or laptops, allows CTV businesses to cross sell their own services and products as well as opening up this first-party data to advertisers. Examples include:

  • Actor bios: Appearing on the mobile screen and upsells to rentals of other movies/series they star in
  • Sponsorship: Open up sponsorship of fan trivia and ‘extra behind the scenes’ content based on the show being watched or of watch party group chats.
  • Upselling: Opportunities to upsell merchandise and brand extensions based on the show or franchise
  • Product placement: Links to purchase goods that are product placement

Conclusion

In this integrated ecosystem, CTV primarily functions as a powerful brand-awareness driver, reaching a broad audience with impactful visuals and storytelling. Mobile, on the other hand, becomes the engine for performance and direct call-to-action execution. By strategically connecting these two screens, CTV content and their ad serving technology can create a rich advertiser eco system allowing advertisers to maximize the impact of their campaigns, moving beyond simple brand exposure to achieve tangible marketing objectives, such as website visits, lead generation, and ultimately, sales. CTV ad businesses using this synergistic relationship of unlocking the full potential of cross-screen advertising can really offer a competitive advantage to their platform. In order to deliver a more engaging and effective experience for consumers while driving superior results for advertisers. Get in touch with us and find out how EXADS is the best CTV ad serving technology to take your business to the next level!