Advertiser Q&A: Connected TV

Advertiser Q&A: Connected TV

Advertising

As we blogged in 2019, we are living in a connected TV (CTV) era, one in which audiences are fragmented, consuming content across multiple devices and channels. CTV provides brands with tremendous opportunity, but some confusion persists about what it is exactly. Read on to learn more about CTV, how it differs from over-the-top (OTT) TV, and how it might benefit your brand:

What exactly is connected TV?

Connected TV refers specifically to the device used to access content (e.g., devices such as Amazon Fire, Roku, and Apple TV, not to mention gaming consoles like Xbox). Andison Flores at LiftIntent explains, “CTV is anything that allows your TV to access video content through the public Internet, as opposed to traditional cable.”

Is connected TV the same as OTT?

Though CTV and OTT are often used interchangeably by marketers, brands, and even reporters, there is a distinction. As Tal Chalozin, Co-founder and CTO at Innovid, says, “OTT means you are accessing content ‘over the top’ of infrastructure providers.” For example, users might be purchasing bandwidth from a provider like Comcast. But they can go “over the top” of Comcast by buying additional content—subscribing to Hulu, say, or Netflix. Chalozin explains, “You’re using the bandwidth provider as an access layer but not as the main way you’re accessing content.” In short, OTT refers to the new breed of content providers.

The Interactive Advertising Bureau (IAB) makes a handy comparison:

  1. “Use CTV when you are specifically talking about Smart TVs and streaming devices that are attached to TVs. Mobile and desktop devices are not included under the term CTV.
  1. Use OTT when it doesn’t matter which devices are included. For example, if you want to talk about ‘OTT services’ (like Hulu or TubiTV), and delivery to a particular device doesn’t matter. OTT is still a valid term that distinguishes premium television content from the vast world of online video where user-generated content is commonplace.”

Why is connected TV getting popular with viewers?

As Anna Kuzmenko, COO at BidMind by Fiksu, notes, CTV offers users the freedom to “watch whatever they want, whenever they want.” Millennials and Gen Zers in particular have “cut the cord,” eschewing the limits of linear TV viewing in favor of streaming.

Why is connected TV popular with advertisers?

Advertisers are following their audience. According to Forbes, a recent study from the Leichtman Research Group estimates that 80 percent of TV homes in the U.S. have at least one connected TV device. That number represents a steady increase from the 57 percent logged in 2015, and 24 percent in 2010.

Predictably, CTV use soared during the pandemic: Forbes also cites a Nielson report, which notes that CTV viewing exploded from 2.7 billion hours during the pre-pandemic week of March 2, to 3.9 billion hours during the weeks of March 23, March 30, and April 6. Even during the week of May 4, when stay-at-home laws eased in some states, CTV viewing remained above pre-pandemic levels at 3.5 billion hours.

These stats are good news for advertisers embracing CTV. So is the fact that CTV allows brands to reach out to specific audiences. As Forbes notes, “CTV’s targeting capabilities are the ‘holy grail’ for advertisers.” Many CTV companies use ACR, or Automated Content Recognition, which collects data that can inform programming recommendations for users and better target ads to niche groups. Although audiences in the era of connected TV may not be as huge as the linear TV days, CTV helps brands better understand and reach their niche market effectively.

And the future of CTV looks bright. Kuzmenko says, “In 2021, CTV ad spend is estimated to hit the significant sum of $10.81 billion.”

How do you set up a connected TV campaign?

The approach for now is very passive: you give a connected TV provider such as Verizon Media/Yahoo the desired demographic you want to reach, and Verizon Media/Yahoo tells you what the CPM (cost per thousand impressions) will be. Verizon Media/Yahoo manages the rest.

Note: different providers have different requirements. With Verizon Media/Yahoo, for example, you can dive in with any budget, but a $20 CPM is minimum if you want to get a reasonable amount of impressions. And as might be expected, the more targeting that you do—narrowing your demographic by city, say—the more expensive advertising is going to be.

What metrics can connected TV providers give you?

It varies. iHeart Media gives you impressions, cost, CPM and completion rates as well as some demographic results with similar KPIs. Verizon Media/Yahoo gives you impressions.

Additionally Verizon Media/Yahoo can include conversions as well based on users’ IP address, Yahoo mail receipts, and other proprietary data/tools.

Contact True Interactive

Eager to capitalize on the opportunities CTV can offer your brand? Contact us. We can help.

Photo by Li Lin on Unsplash

How Verizon Media Is Evolving

How Verizon Media Is Evolving

Advertising

Verizon Media (formerly known as Oath) is enduring a transition. But advertisers, especially business-to-business brands, should keep the company on their radar screens and be ready to act on some of the changes occurring at the subsidiary of Verizon Communications.

Verizon Media Shares Mixed News

In recent months, Verizon Media has been the source of difficult news, including layoffs and declining revenues. One piece of news we’ve been following and reacting to throughout 2019: the closing of the Oath Ad Platforms ad server in 2020. As Verizon Media told Adweek,

Following a strategic review of our business, we have decided to close the Oath Ad Platforms Ad Server, effective 2020. We are working with our customers to ensure they are supported as they migrate from the Ad Server platform. This does not affect our Oath Ad Platforms SSP business.

I see the shutting down of the Oath Ad Platforms Ad Server as good news for Oath customers. Advertising on the Oath Ad Platforms Ad Server means using the Yahoo! platform, which lacks strong functionality and uses dated features. With the shutdown of the Oath Ad Platforms Ad Server, your business will transition to Bing. This change is especially advantageous now that Microsoft organized its advertising products under Microsoft Advertising. The rebrand entails the launch of new features such as Sponsored Products and an enhancement of recently launched features such as Microsoft Audience Network, which is powered by artificial intelligence. Advertisers will be in a stronger position thanks to the stronger role Microsoft now plays.

A New Phase for Verizon Media

Meanwhile, Verizon Media is entering a new phase that includes the embrace of augmented reality and virtual reality, according to CEO Guru Gowrappan. In a recently published interview with Fortune, he said,

The biggest thing we’re investing in is 5G [the faster successor to 4G LTE mobile networks]. Every product is going to have an aspect of 5G. You’re going to have deeper integration of augmented reality and virtual reality.

We not just have front row seat and access to what is happening but we’re also building all of our apps, products, and content in that experience. So if you go to our Los Angeles office, we have the first 5G animation studio [Ryot Studios]. It’s brought down the cost of producing animation, and Ryot does a lot of AR content.

He also plans to integrate e-commerce with advertising more effectively, following the example set by Instagram. As he pointed out,

Let’s say you’re watching the Dallas Mavs and want to buy a jersey while you’re watching. We want to integrate commerce more deeply.

Also, the ad model itself has become combined with transactions. That’s what Instagram does. It’s advertising and sponsorships, but in the end, it’s enticing you to come in and transact on the platform.

These are bold statements for a company emerging from hard times, but the company understands that its previous game plan has been flawed.

What You Should Do

My advice to brands advertising on digital:

  • Take stock of Verizon Media’s considerable publishing assets, such as Engadget, Huffington Post, TechCrunch, and Yahoo! According to Verizon Media, its publishing platforms deliver an audience of more than 1 billion people.
  • Watch how Verizon Media evolves its ad products under Guru Gowrappan. He has made it clear that it’s no longer business as usual at Verizon Media. The possibility of ad products using AR and VR is exciting, but the more important near-term development is the integration of e-commerce with its ad products for businesses seeking a tighter integration between online ads and sales.
  • Make sure you understand the impact of the demise of the Oath Ad Platforms Ad Server. Talk with your agency partner if you’re working with one. Ensure that you understand the role of Microsoft (which I see as a positive one).

As always, contact True Interactive if you need help navigating the digital landscape. We have deep experience with online advertising. We’re here to help.