Are Advertisers Ready for Connected TV?
March 12, 2019 | Article written by Frank Pasquine
Many believe we’re living in the golden age of television, a renaissance of the small screen—which, come to think of it, isn’t really that small anymore. With the proliferation of addicting and binge-worthy content on OTT services like Netflix, Hulu, Amazon Prime Video, HBO Now, and others, who can argue? Certainly not the numbers.
According to eMarketer, US connected TV (CTV) users will reach 204.1 million by 2022, up from 182.6 million in 2018. As a percentage of the US population, CTV users will increase to 60.1% in 2022, from 55.5% in 2018. In fact, according to Business Insider, some agencies say that the demand for inventory is outpacing supply.
What Are the Benefits of CTV?
Similar to television, advertisers are able to engage massive audiences through cinematic storytelling. The bonus? They’re able to leverage the targeting abilities of digital. Not only that, people are more inclined to watch the ads, which are unskippable. According to an Extreme Reach study, completion rates for CTV ads were in the 94% range.
CTV ads can also be more personalized to an audience’s interests—its technology allows advertisers to harness first-party data to perform granular audience targeting. Equipped with audience predictor tools and audience-building algorithms, you can create precise audience profiles within the CTV ecosystem.
With CTV you also have the ability to optimize your TV campaigns in real-time—whether that means turning them off, increasing their intensity, or switching the ad content altogether.
What Are the Concerns?
How do you navigate this new world? With CTV, video advertisers have the option of buying from an array of sources, including streaming device manufacturers, smart TV makers, content aggregators, programmatic ad firms and broadcast networks that allow advertisers to extend traditional TV buys into the digital space.
Fragmentation in CTV may provide some hesitation for advertisers, but this isn’t anything new. Many TV buyers have faced similar dilemmas with linear TV—whether to buy upfronts versus scatter, affiliate buying, cable syndication, MVPD, etc. While the options may be daunting at first, the process should become more seamless for those who pursue CTV solutions.
There will always be concern over brand protection. In the case of Tremor Video DSP, for example, brands can be reassured their videos are only delivered in the safest and most effective CTV environments by ensuring pre-bid fraud through DoubleVerify is applied across all supply.
What Do We Recommend?
Be sure that you’re targeting and designing for the digital experience. To truly realize the potential of CTV, video advertisers need to engage these audiences with the same granularity as a desktop or mobile campaign.
Unlike traditional TV, there’s no need to run a single :30 spot with the same partner. It will play on repeat and your frequency will be obscene! Consider sequential messaging as a way to take advantage of the digital platform and enhance the user experience.
Think creatively. With added creative features like end-cards or overlays, advertisers can leverage data in order to speak directly to their audiences with a customized message or call-to-action.
Take your video advertising game one step further by owning the modern living room. With ACR technology, you can retarget viewers by telling your story not only on CTV, but across all second-screen devices. Leveraging this strategy enhances brand recognition among consumers in a world full of distractions.
Want to learn more about the power of CTV advertising? Visit tremorvideodsp.com.