Are advertisers missing out on connected TV?
We’ve discussed the powerhouse that is connected TV (CTV) before, but if you’re new here, it refers to digital video streaming that occurs via an internet-connected TV screen or over-the-top (OTT) device. The concept has seen rapid success in the US, mirrored by an equally welcomed reception across the pond in the EU.
CTV has a long list of benefits for users, broadcasters and advertisers alike. From convenience and access to larger content libraries for consumers to enhanced targeted advertising opportunities for broadcasters and their advertisers. It’s fair to say that these benefits are being noticed, with more homes than ever swapping their traditional TV set for a more connected alternative, as well as broadcasters and content providers building and distributing CTV-friendly apps. Such an increase in uptake poses significant opportunities for advertisers, broadcasters and consumers. A recent report from FreeWheel typifies this, outlining further some of the advertiser specific benefits that CTV can offer.
So, how exactly can advertisers benefit from CTV?
Despite the digital revolution making desktop and mobile content consumption favourable through years past, audiences are constantly evolving. In the post-covid era, Connected TV is the new front runner, with 61% of viewers choosing CTV to watch videos. This is good news for advertisers who can reach larger audiences and various demographics with more memorable content via CTV.
Coupled with this, CTV advertising facilitates multichannel marketing. One common example of this includes providing on-screen QR codes that once scanned with a mobile, directs users to a promotional webpage or social media account. Such content, which inspires sharing, is complementary to the obsession with real-time sharing whilst watching TV amongst modern audiences. This type of advertising and engagement not only appeals to multi-device using younger viewers, who are traditionally more adverse to TV content, but also has the benefit of increasing the global reach of ad content.
Additionally, advertisers get to reap the rewards of the trust associated with the TV screen. For over 70 years now, television has proved itself to be one of the most important influencers of public opinion. This bond helps agencies in forging longer-lasting relationships with viewers, resulting in a more receptive and engaged audience. This is a benefit that mobile and desktop advertisements fall short of – often considered more intrusive to users. Further to this, CTV platforms offer ultra-specific targeting and segmentation that not only ensures an advertising budget is better spent, but also assists in the development of perceived advertisement authenticity. Ad authenticity is integral amongst younger audiences, who typically respond well to personalised and hyper-relevant targeting.
Are advertisers making the most of CTV?
Despite all of the benefits, are advertisers actually embracing CTV? The answer is, sort of.
The uptake of CTV in the US is immense, where AVOD (ad-supported video-on-demand) accounts for 34% of the total streaming time there. Research also suggests that CTV ads are reaching audiences more effectively than the more traditional linear approaches. US advertising success with CTV is definitely creating a buzz in the EU, where European markets are increasingly willing to view ads in exchange for free VOD (video-on-demand) content.
However, execution in these European markets is lacking. Broadcasters are enthusiastic about moving into UK markets but lack logistical direction with further EU expansion, with little insight into the importance of localisation and language, which therefore restricts the rate at which successful CTV advertising can be offered. In larger EU markets like Germany, France, Italy and Spain, getting localisation right is key.
Ultimately, the current ‘copy and paste’ approach where broadcasters look to US markets for guidance, ignores local intricacies and market requirements and thus impedes advertisers in the EU looking to embrace the same CTV revolution. As promising data and reports continue to make a case for CTV, we hope to see worldwide advertisers realise the potential benefits of the platform. In the post-covid age where you need hyper-relevance (once thought the realm of sci-fi) to catch the eyes of younger audiences, we would love to see advertisers exploring all possible avenues of doing so.
At PlayBox Technology, we’ve been helping broadcasters and streamers get their content from A to B for over 15 years now. We have seen our fair share of change and advancement – and we’re delighted to be helping our broadcasters expand into CTV. Our solutions benefit any OTT workflow, offering professional automated playout to start-ups and multinational broadcasters alike.
Stay tuned to our blog for more key updates on connected TV. If you’d like to find out more about what we do, get in touch.