CONNECTED TV Your Video Asset Guide - Centro
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I N T R O D U CT I O N Fragmented video viewership By 2022, the ranks of Connected TV users Does your digital video across screens is a major will swell to 204.1 million, or 60.1% of strategy reach audiences challenge that most advertisers the population. Despite this groundswell face—on the flip side, it’s also where they view video? part of the beauty of video, of consumer adoption, Connected TV since the number of advertising hasn’t caught the world opportunities to reach target by storm—yet! —eMarketer, 2018 audiences is still on the rise. Though Connected TV (CTV) has not reached The numbers speak for themselves—and the same levels of ownership as desktop and it’s more important than ever to incorporate mobile devices, it is a growing space that is CTV as a valuable player in your media mix. worth consideration for multi-screen video buys. It is also the way to reach your target The time is now! audiences on the big screen! Take full advantage of this emerging channel eMarketer estimates 190 million people in and review this guide to learn everything the U.S. will use Connected TVs at least once you need to know about the latest digital per month in 2019—a number that amounts to nearly 57% of the general population. video opportunities. 3
W H AT ’ S I N S I D E ? 7 THE 411 ON CONNECTED TV ADVERTISING 16 CONNECTED TV STRATEGIES 18 GET STARTED WITH BASIS 5
In its simplest form, a Connected TV is a TV set that’s connected to the Internet. This connection is made through built-in capabilities (a Smart TV), or an external “over-the-top” (OTT) device that enables a standard TV set to become a Connected TV. Voila! These include media streaming devices (i.e., Roku, Amazon Fire TV, Apple TV or Chromecast), blue-ray players or gaming consoles (Xbox or PlayStation). Video advertising on Connected TV occurs during the in-app experience. For example, if a Connected TV user-experience opens an app such as Tubi TV to watch an episode of The Lone Ranger, a :15 or :30 video ad would play prior to the content starting. In this way, the TH E 411 ON experience is similar to a pre-roll ad watched Connected on a laptop or mobile phone, but the user- experience is comparable to a linear TV ad. TV Advertising “ 74% OF HOUSEHOLDS have a connected TV. —Leichtman Research Group, 2018 ” U.S. CONNECTED TV USERS (millions and % of population) 2018 2019 2020 2021 2022 182.6 MM 190.0 MM 195.9 MM 200.4 MM 204.1 MM (55.5%) (57.2%) (58.6%) (59.4%) (60.1%) Source: eMarketer, 2018 THE 411 ON CONNECTED TV ADVERTISING // 7
Historically, advertising has been somewhat limited on Connected Benefits of Connected TV because viewership has been heavily skewed toward services like Netflix and Amazon, which are not ad-supported. TV Advertising An increase in content providers has opened up a supply for ad placements. In December 2018, Roku reported that its users spent an average of 2.8 hours daily watching video through CT V the platform, and that “free” was the most searched term, Connected TV is an additional indicating a preference for ad-supported content. device to reach an audience. Allows 100% full-screen viewability, with limited skipping options. When it comes to advertising in the digital space, media buyers can work “ Nearly 70 MILLION directly with publishers, content households have aggregators and device manufacturers— a connected TV Has the most premium and engaging inventory available in-market. or they can access inventory through a Demand-side Platform (DSP). streaming device. —AdWeek, 2017 ” A study run by the Interactive Advertising Bureau (IAB) in Connected TV offers the targeting of digital advertising, with the lean-back experience of September 2018 found that of all of the ad-supported video viewers in the U.S., TV. When a consumer watches CTV, they are experiencing it in the same way they would 63% 59% 57% watch linear TV—on a big screen, within the casual environment of their living room. said they didn’t mind seeing said they didn’t mind seeing said they liked when brands A CTV ad is more immersive and relaxed than a small ad via mobile or laptop screen. ads if the content was free. ads if they could watch their supported the content they CTV also provides an opportunity to reduce waste, with greater targeting opportunities— preferred content whenever watched. compared to traditional TV. CTV should be part of your brand’s overarching and digital they wanted. video strategies. Source: eMarketer, 2018 8 // THE 411 ON CONNECTED TV ADVERTISING Copyright © 2019 Centro, Inc. All Rights Reserved. THE 411 ON CONNECTED TV ADVERTISING // 9
DIGITAL VIDEO: OVER-THE-TOP (OTT) DEVICES Connected TV Capabilities Connected TV uses an Internet connection to watch Over-The-Top (OTT) video content on a TV. OTT devices connect a TV set to the Internet. Gaming Consoles The definition of “watching TV” has changed. (such as Xbox) Individuals who have never had any standard TV subscription don’t even call it ”TV” anymore, they simply call it “video”. The average time spent watching Streaming Device (including Chromecast, Roku, Apple TV) digital video content is expected to increase from 86 minutes per day in 2018 - to 98 minutes per day in 2020—with approximately 30% of this time spent on Smart TVs Connected TV. Source: eMarketer, 2018 (via a built-in capability in the TV itself, Blu-Ray Player) Blu-Ray Player Adoption Levels 1 TRADITIONALS 2 SHAVERS 3 CUTTERS 4 NEVERS “ 38.9 MILLION Americans will use a Roku ” Only have traditional Have combinations of Used to have traditional Have never subscribed television via cable traditional TV and CTV TV and have transitioned to traditional TV and device at least once a month. or antenna. in their household. to 100% CTV. receive all content —eMarketer, 2017 via CTV. What connected TV devices do Internet users in North America own? 12.5% Google Chromecast 13.3% Apple TV 15.7% Amazon Fire TV stick 17.7% Roku streaming player 19.4% Game consoles 27.1% Smart TV 34.2% Other Source: eMarketer, 2019 10 // THE 411 ON CONNECTED TV ADVERTISING Copyright © 2019 Centro, Inc. All Rights Reserved. THE 411 ON CONNECTED TV ADVERTISING // 11
Campaign Set-up Connected TV Inventory Check out a few of the targeting parameters that you can adjust TV CONTENT OWNERS AVAILABLE IN BASIS and optimize for your CTV campaign in Basis, below! Target inventory from specific CTV apps or networks to focus on content alignment. DEVICE GEOGRAPHY Select Connected TV as the Generate brand impact with device type you wish to target. national targeting or select certain Designated Market Areas (DMAs). DEVICE MAKE/MODEL “ Sling Choose specific models of OTT devices, TIME AND DAY gaming consoles, and smart TVs. Maximize scale by targeting TV closed 2018 with All Times of Day, or use 2.42 MILLION SUBSCRIBERS.” Day-parting to match —DISH Network, 2018 viewers’ schedules. FREQUENCY CAPPING Control the frequency with which the ads are displayed. PREMIUM DISTRIBUTORS CTV SUPPLY-SIDE PLATFORMS Choose from a variety of distributors Many supply-side platforms (SSPs) Targeting with PMPs that aggregate TV content from multiple are expanding to offer access to networks. CTV inventory. Target households based on traits like age, gender, income, presence of kids, search or shopping intent. Also select from categories like sports, food and drink, style and fashion or automotive—with a dedicated Centro Private Marketplace team, our PMPs are updated often. 12 // THE 411 ON CONNECTED TV ADVERTISING Copyright © 2019 Centro, Inc. All Rights Reserved. THE 411 ON CONNECTED TV ADVERTISING // 13
Ad Formats Measurements Ad placements on Connected TV are bought and sold like digital video, just on a TV screen. Measure the success of your Connected TV advertising with the following metrics: IN-STREAM VIDEO AD PLACEMENTS INTERACTIVE PRE-ROLL provides an that run within the stream of video content, opportunity to run interactive versions of 1 I MPRESSI ONS DELI VERED look and feel like a TV experience to the these video ad formats because Connected consumer. This is still the most popular format TV is a hybrid screen and ads are served like available. If your brand only has standard :15 digital video. This type of ad format offers a 2 COST PER COMPLETED VIE W ( C PC V ) and :30 spots that were built for a traditional way to move beyond branding and awareness TV environment, this is the easiest place to offer an opportunity for engagement from to repurpose those spots in a digital video the consumer. You may have seen these types 3 VI DEO COMPLETI ON RATE ( VC R ) environment. There are many opportunities of units on desktop or mobile devices in the past, for in-stream in the DSP, but site direct and they’ve more recently been coming to opportunities are available as well via Connected TV. This is available only via site direct 4 VI DEO QUARTI LE COMPLE TI ON S the RFP process. opportunities. 5 UNI QUE DEVI C E REAC H HOME SCREEN PLACEMENTS are MID-ROLL PLACEMENTS are available available on some Connected TV devices. through some private marketplaces. This kind These are essentially banner ads on a TV screen, though some are clickable. You won’t of ad breaks up content, playing after the video has already started. It can be set to play at a “ Completion rates for connected TV, at 95 percent, is 27 PERCENT HIGHER THAN typically see as many clicks or engagements designated moment, essentially pausing the with these types of units as you may with the content for a commercial break, or do it based DESKTOP AND 32 PERCENT HIGHER ” previous example of interactive pre-roll, but on a unit of time that has passed. For example, THAN MOBILE these ad placements offer the opportunity to after 5 minutes of view time an ad could play. —eMarketer, 2019 potentially capture a user’s attention before This type of advertisement is best suited for they may go into a non ad-supported app. long form content. This is available only via site direct opportunities, reach out to learn more. 14 // THE 411 ON CONNECTED TV ADVERTISING Copyright © 2019 Centro, Inc. All Rights Reserved. THE 411 ON CONNECTED TV ADVERTISING // 15
B I D APPROPRI ATELY CTV ads serve on premium inventory; review their prices and bid accordingly. Connected EXPAND I NVENTORY & I NC REASE REAC H TV Strategies Supplement CTV strategy by serving video assets on other devices in order to better scale video campaigns. MAK E A DEAL Access video content on CTV devices through a variety of pre-negotiated PMP deals—and negotiate your own deals. CONNECTED TV STRATEGIES // 17
Connected TV is an opportunity to extend your digital audience base and optimize budgets from traditional ads. Still not sure about the benefits of advertising on Connected TV? PREMIUM, BRAND SAFE ENVIRONMENT CTV video ads runs in HD-quality content, often within long-form TV or TV-like programming. G ET STARTE D W ITH 100% VIEWABLE In-stream CTV placements are full-screen, just like “ $2.1 BILLION traditional TV, with limited skippable ad options. Basis programmatic TV ad spending ” LESS CLUTTER, MORE MEMORABLE ADS Ad pods are shorter than live TV, leading to fewer within US in 2018 commercials airing and more memorable ads. —eMarketer, 2019 REACH MULTIPLE VIEWERS Unlike the one-to-one experience of desktop and mobile, CTV often reaches multiple co-viewers in a household. B ASI S MAK ES CONNECTED TV E ASY is integrated with some of the biggest programmatic video exchanges in the industry, including SpotX, One by AOL, Tremor, and BrightRoll. Though it’s possible to purchase some OTT inventory in the open marketplace via these supply partners, it’s pretty scarce, and more of this premium video inventory is available through Basis PMPs. Today, these platform deals include inventory from partners like Samba TV, Scripps Networks, A&E Networks, 495 Communications, Newsy, Tubi TV, Sling TV, Bloomberg, etc. across all types of Connected TV devices. Basis also offers the opportunity to build custom PMPs for this inventory. GET STARTED WITH BASIS // 19
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