The massive increase in the influx of masses has fueled the desire to advertise on these platforms. After spending most of the year on the front lines meeting hundreds of local agencies and advertising buyers, here's my assessment of the lessons learned in the 2018 CTV-related advertising market.
The fourth quarter witnessed the biggest rise in the trend of cord cutting, with more than 1 million consumers canceling their subscriptions to cable or satellite television. CTV emerged as the fastest growing video segment this year, with marketers planning to increase CTV budget commitments significantly, according to the "Advertiser Perception" study. At the same time, the fragmentation of the TV streaming system is increasing, with DTC services increasing on a weekly basis.
For many agencies and brands, the concept of CTV is that it is still an emerging market made up of a very complex network of players, making the buying experience puzzling. There is still a lack of understanding of the difference in inventory quality and implementation among service providers as each platform has its own set of targeting criteria and measurement methods. More importantly, when it comes to budgeting, marketers are still thinking about whether CTV should be part of a television or digital budget or whether it's stand alone.
Scope and inventory are major concerns
To demonstrate their spend, marketers need a better understanding of how data-based and audience-based campaigns can increase sales, awareness, and willingness to buy.
The scale is still the main obstacle for marketers. The explosion of flow options makes it difficult to aggregate the reach of the public and to build scalable media plans when applying granular targets, especially at the local and regional levels.
When it comes to stock, it is more puzzling that marketers know what they are really buying. While smart marketers know that premium video is a safe choice for a brand, those who buy stock on open exchanges may not have an excellent inventory. In a program environment, the campaign can not be run on any particular publisher; ads can actually be delivered to hundreds of networks, platforms, and viewers that have not been verified, which means an increased risk of fraud and uncertain delivery.
The scale that now appears in CTV not only allows marketers to start increasing designability, but also more specifically targeting their audiences across interest categories at home to the viewer level while providing the ability to make one purchase across each OTT platform on a scale.
Demonstrate the effectiveness of CTV constriction
CTV's appeal is that it offers the best viewing experience on the big screen with digital media accuracy. Advertisers reach the most engaged audience, because the chance to show a viewer to navigate away from an ad that is displayed in a low-self-selected display is low. Because CTV ads are not skippable, the end-to-end rate is usually 95% or higher.
To demonstrate their spend, marketers need a better understanding of how data-based and audience-based campaigns can increase sales, awareness, and willingness to buy. Thus, the hot topic for marketers is attribution in CTV and whether the scale exists to do so.
So, how does the referral work in the CTV campaign? The IAB defines this as a family-level interaction with measurable outcomes by identifying a set of user actions that contribute to the desired outcome.
There is potential on OTT platforms that allow a marketer to track whether someone has taken a required action after seeing a CTV ad. For example, a car dealer can measure whether a viewer has visited his or her website to schedule a driving test or if he goes to the dealership and buys a car. This level of online and offline referrals gives marketers richer statistics on the measurable results of spending on CTV.
The alignment of key performance indicators and benchmarks to measure success is the cornerstone of CTV's value proposition. Proof of value starts with clear definitions of KPIs and early expenditure expectations. This will help marketers identify solutions that provide the greatest return on investment on important impact metrics, whether brand awareness or driving traffic online or in-store.
CTV's unique future advertising experience, which is expected to become the largest in 2019, paves the way for an immersive and personal experience by ensuring that both advertising and content are closely related to the consumer.