Connected TV (CTV) is a tremendous opportunity for advertisers to reach engaged audiences with the right message wherever they may be. People have changed the way in which they consume big-screen content, and in tandem, advertising is also adapting to keep pace, opening up a world of new opportunities for advertisers.
Audience login and authentication allows advertisers to target individual households or viewers, while digital attribution helps identify the link between ad exposure and engagement. At the same time, return data flow and rapid execution means buyers can analyse and optimise campaigns with agility, without needing to lock in to lengthy or rigid upfront commitments.
With analysts predicting digital video and CTV spend to grow 14.8% and 34.8% in 2021 respectively, CTV is emerging as the premium channel for the post-linear future. Still premature in many markets, there are a few key ways ad tech platforms that can help buyers and sellers realise the full potential of CTV around the world.
Apply programmatic methods
CTV benefits from being driven by real-time data, providing an opportunity for precise targeting at the local, household or even device level. Today, marketers can use first-party data from their own customer relationship management (CRM) and transaction records, online data such as website visits and available digital segments indicating, for example, kids at home or occupation type, to identify when and where to reach their desired audience.
Frequency capping and competitive separation
Consumer fatigue due to excess ad exposure can be a brand-killer and a waste of valuable advertising budgets. Frequency capping allows media owners to specify the maximum number of times ads are served to a viewer, while competitive separation ensures ads from similar or competing brands are not played back-to-back. Both methods are key to maximising a campaign’s efficiency.
The digitisation of the TV-buying workflow will speed up ad trading. More than that, the ability to activate, optimise, report and adjust campaigns rapidly allows ad buyers to change their creative messaging or spending commitments far quicker than traditional TV would typically afford, as many had to do early in the COVID-19 pandemic.
CTV has grown at a tremendous rate, accelerated by the rise of on-demand consumption. These changes are leading to a broader convergence of traditional and digital media and increasing innovation in TV advertising products. With the right technology in place and partnerships across the industry, ad tech platforms can help participants on all sides reach their full CTV potential.
The next chapter of growth and innovation
Increasingly, we are seeing TV players ramping up their digital capabilities to complement their traditional strengths, while online players are looking to integrate third-party audience metrics into their platforms to improve comparability and transparency.
Proactively tackling challenges arising from emerging formats like CTV – around identity, context, campaign planning and outcomes – and ensuring that buyers can transact with assurance and drive performance has been top of mind for everyone.
Innovative thinking and solutions are fundamental to go beyond traditional CTV capabilities. Xandr’s data science-based CTV pacing solution, for example, instills confidence that buyers’ budgets are allocated correctly, and its novel content taxonomy system enables a user of curated marketplaces to transact and report on a clearly defined and manageable set of OTT content descriptors, gaining critical insight into where their ads are running.
Around the world, broadcasters and technology platforms are working to align and simplify access, thereby making it easier to buy across multiple channels. This exciting evolution will ensure all parties are able to reap the benefits of CTV.