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BizReport : Advertising archives : January 07, 2019

Experts: Embrace differences in CTV, linear TV

Too many brands and marketers are looking at the digital space through analog vision according to some experts, and that distorted view makes it hard for those brands, publishers, and advertisers to fully connect with digital consumers. A new year is the perfect time to update that digital strategy. Here's how two experts believe brands should change their interaction via CTV, walled gardens, and M&A.

by Kristina Knight

First, stop trying to force CTV to match linear TV

"Back when MTV was on the rise the slogan was "I want my MTV", in 2019 I feel like imploring "don't dumb down my CTV." Linear TV is measured via ratings which estimates how many people watched a TV show.  The only reason it matters is because it is an indicator of how many saw the advertisements that ran at that time. Every week, more and more households consume a greater percentage of their TV time shifting to CTV. And with CTV, a greater percentage of the shows, no matter when they are watched, will have different ads tailored specifically for that household. This means the old system of ratings for shows becomes less and less relevant as a metric for advertisers to gage reach," said Andre Swanston, CEO, Tru Optik.

"CTV/OTT is not traditional TV, it is NOT linear; it is a pull mechanism vs a push mechanism, a user is opting to watch sometime at a given moment. Cable companies are now selling VOD as OTT (video on demand) - but that approach will not extract the true value and new audience reach that OTT provides," said Aman Sareen, CEO, ZypMedia.

Second, remember walled gardens aren't the enemy - when used properly

"Walled Gardens can be positive for advertisers and consumers when data and insight are used to enhance the experience of viewers and provide superior capabilities and efficiencies for advertisers.  The problem with most of the walled gardens device manufacturers and media networks trying to exploit across CTV, is that they provide neither advertisers or consumers much value. Viewers often have a worse experience and advertisers must contest with fragmented and inconsistent capabilities and metrics across different OTT providers and devices," said Swanston.

Third, M&A will continue

"Publishers/networks that have their own and/or exclusive content will be more valuable. Content has, and will continue to be, king (Disney creating its own content, Tubi TV licensing exclusive content from Lions Gate, etc.)," said Swanston. "We will continue to see M&A in data, measurement or video/TV space, especially with the larger companies buying the "smaller" ones (just like AT&T bought AppNexus). However, VC's will continue to be stingy. To fill this void, Private Equity will step in."

"Consolidation will happen, especially when it comes to TV groups (Nextar Media Group just bought Tribune for $6.4B). Small companies/start-ups that can move fast, innovate quickly and provide complimentary solutions will be an M&A target for companies that are more established, but can't be as fast," said Sareen.

Finally, ad fraud and fragmentation mean proper data strategy is more important than ever

"When it comes to local advertisers, they are poisoned by misinformation - being sold web inventory under the guise of OTT. Also, SSP's are selling the same inventory. Exchanges exist to make publishers inventory more valuable but if you're buying through different exchanges it important to ensure you aren't bidding up your own prices," said Sareen.

"OTT ad fraud is really desktop and mobile web-based ad fraud hyped up by companies trying to stay relevant as more and more ad spend shifts to Connected TVs. The majority of OTT is transacted with direct IOs to premium publishers, followed by the fastest growing vertical, which is programmatic direct or private marketplace transactions which are also predominantly buying inventory from premium publishers. Only a small fraction of OTT happens via open exchange and typically those publishers over index on desktop/mobile inventory more so that CTV inventory. The real validation or measurement challenge across CTV are not ad fraud or bot traffic. It is deduping Household Reach and Frequency, validating what device type and manufacturer your ad ran on, and confirming that your audience and/or geo parameters were in target," said Swanston.

Tags: advertising, advertising strategy, advertising trends, CTV, digital marketing, linear TV, TruOptik, ZypMedia

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