Addressing CTV’s growth and potential
A growing section of the population is moving away from traditional broadcast TV, with our research finding that one-fifth (20%) of the UK audience now exclusively streams TV. With nearly 7 in 10 (69%) Rakuten TV users watching with at least one other person, streamed content is now at the centre of many family homes.
To support this growth in demand, many Connected TV (CTV) providers are upping their game with new shows and channels that appeal to multiple audience segments. Both free ad-supported streaming (FAST) channels and ad-supported video on demand (AVOD) can attract viewers with hero content, such as major blockbuster films, without the need to start a paid subscription. Therefore, the ad inventory available on these platforms will be hot property this year.
Complement existing TV strategies
As such, advertising on CTV should be a vital part of brands’ and ad agencies’ TV strategies for 2022.
Frequency-driven, brand awareness campaigns work – they always have done and always will do. Traditional broadcast TV provides the brand with repeated exposure, which establishes and reinforces its recognition, enabling ad buyers to cast a wide net and reach a large audience base.
What FAST channels on CTV platforms offer is an additional avenue for investment, alongside traditional broadcast ads, by providing a way to reach those viewers who stream. What traditional TV and CTV, combined, create is the ability for brands to be present when an audience is at its most receptive.
Communicate the power of Moments
A brand will resonate more when it reaches the right audience at the right time. It can increase resonance by aligning to an emotional mindset present at certain points in their day.
Think of your own day: the person you are at 9am – starting off your morning by catching up on the news – is different to who you are at 7pm, relaxing in front of a boxset. Like everyone, you live your life through a series of different ‘Moments’, each defined by a set of emotions and attitudes that influence how you are feeling. Brands need to align and make sure they exist within these Moments.
Connecting with an audience in the right Moment augments the impact of advertising through being explicitly chosen by the viewer, who has selected the content based on their mood at that time – whether that’s a particular film or programme via AVOD, or a particular genre channel via FAST. CTV offers more potency, as it enables more than simply a choice of what is being broadcast.
In this sense, Moments are far more than just ‘momentary’. They cover extended periods of time that range from a 30-minute episode of the latest crime drama to a two-hour Hollywood blockbuster. Understanding these Moments is what allows brands to hit that sweet spot.
Build smarter budgets with CTV
By demonstrating the power of Moments to ad buyers, CTV can grow into an important part of the advertising ecosystem, cementing streaming as a pillar of short- and long-term strategies.
Sure, traditional broadcast TV is always going to be essential, but buying ad space on it is expensive and not very agile. Building in a CTV campaign – alongside the budget that has been ringfenced for traditional broadcast campaigns – enables advertisers to be smarter with their remaining budget.
Alongside additional reach and the impact of finding someone that is choosing to watch that particular piece of content, CTV is a cost-effective way of ‘Connecting in the Moment’. If you were to look at the cost of reaching an additional 100,000 viewers, for example, adding a CTV campaign – rather than upping your traditional broadcast budget – is a more efficient way to do that.
With this in mind (and as its share of the market keeps growing) CTV should already be an essential component of any successful TV advertising strategy. Buying CTV inventory, brands and agencies can better align messages with their audience when it really matters – in the right mood and mindset.
CTV providers should communicate this message to brands and agencies of all sizes to maximise their advertising revenue at a time when ad budgets are becoming more streamlined and efficient.