CONNECTED TV Your Video Asset Guide - Centro

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CONNECTED TV Your Video Asset Guide - Centro
CO N N E CT E D T V

                      Your Video Asset Guide
CONNECTED TV Your Video Asset Guide - Centro
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
CONNECTED TV Your Video Asset Guide - Centro
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
CONNECTED TV Your Video Asset Guide - Centro
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
CONNECTED TV Your Video Asset Guide - Centro
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
Start the
Connected TV
Conversation.
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