If content is king, then video is building an empire. With the rising popularity of Connected TV and Over the Top Television, advertisers know they have to get on the bandwagon, but what exactly does that entail? There are still so many unknowns that many advertisers are reluctant to jump in. Many advertisers are unaware of the capabilities of CTV, and therefore don’t utilize this dynamic strategy for serving messages to their target audience. In a study of 100 advertisers across a mix of industries, only 7% of advertisers regularly include and optimize ConnectedTV/OTT tactics in their media plans. But if a company really wants to get ahead of their competitors, advertisers need to embrace it now. What factors are important to consider when including alternative video media tactics? First, let’s tackle some definitions:
ConnectedTV – Any television set that is connected to the internet, either natively or through a connected device like AppleTV or Amazon FireStick.
Over the Top Television (OTT) – Any television that is subscribed to a service such as Netflix, Hulu, or Crackle.
- 42% of U.S. households use at least one streaming service
- 39% of U.S. households now have at least one SmartTV
- 24% consumers under age 49 that watch 10+ hours per week, which accounts for about half of all their video viewing.
But that’s not all. Roku’s quarterly financial report revealed that they had a 57% growth in the number of hours watched on the Roku platform, compared the prior years. The fastest growing channels? Those that are ad-supported. What can we conclude from these statistics? Consumers are still watching the same amount of video as they used to, however they’ve watching it on different platforms now. And as live sports and news are now becoming more popular on OTT, consumers don’t differentiate how they’re consuming media – they just view it all as video entertainment.
So how can you ensure your CTV/OTT advertising is working for you? Your marketing partners are vitally important. Any integrated agency you engage should be adept in multiple planning and buying models and have access to a variety of premium inventory. They also need to be data savvy –measurement is still being refined, but you need to define how you’ll measure success before you place the buy. Tracking that customer journey is going to help you identify attribution, or the source of your conversion or website traffic. Things like Video Completion Rate (VCR), Gross Rating Points (GRP) and Cost Per Thousand (CPM) are all valid forms of measurement with CTV/OTT.
The digital media environment continues to grow and evolve. If you’re not evolving with it, your brand is in danger of falling behind. New technologies are bridging the gaps between digital and traditional advertising to be able to build new dynamic solutions to reach target audiences where they are watching.