Connected TV (CTV) is one of the most discussed topics for adtech in 2019. There has been a considerable shift from traditional linear TV to OTT streaming platforms which open up new opportunities for advertisers.
As this new medium provides exciting and commercial opportunities for targeting highly engaged users programmatically, The Drum speaks to Samuel Tan, senior director of market development of Xandr, the advertising and analytics division of AT&T about CTV, the consumer trends that are driving it, issues of ad fraud and the trends hitting APAC.
CTV is being pegged as a big strategic move for 2019 – how is Xandr responding to this?
Connected TV advertising is growing in importance as a component of media budgets as consumers switch from traditional TV to digital. In order to meet advertisers and publishers where they are now and prepare them for the future as digital and TV advertising converge, Xandr has steadily introduced new, advanced products like Xandr Invest, our strategic buying platform providing more ways to transact and access to omnichannel inventory across screens, as well as community, our curated video-forward marketplace. Each of these simplifies and improves an advertiser’s ability to connect with hard-to-reach audiences regardless of how they engage with content.
What consumer trends are driving this?
As the number of platforms and devices for content consumption increase and new providers continue to enter the space, viewers are beginning to adapt by changing where and how they watch shows, and what convinces them to even check shows out.
Research commissioned by Xandr found that viewers plan opportunities to maximize their content experience and time, averaging about 5.5 hours per session. As a result, the timeframe in which they actively watch and finish shows is more sporadic. As they look for convenient, one-stop shops to view content on their own schedule, CTV devices have become an obvious choice.
What should broadcasters and publishers be doing to get ready for this?
In this environment, broadcasters and publishers need solutions that help unify viewers and audiences across channels in order to sell ad inventory the way advertisers want to buy it and measure it, all while improving the experience of viewers. Access to technology, either through owned channels or collaboration, will ensure they are equipped with the controls, data, and buyer demand they need to unlock the full value of their inventory.
How does the increase in live content impact CTV trends? What do publishers and advertisers need to be doing to get ready for this shift?
The emergence of live content for CTV is creating new opportunities for both publishers and advertisers.
To prepare for this shift, publishers need to ensure they have access to the resources they need to create premium content and the channels to monetize it, while advertisers need to adapt the formats in which they serve ads and obtain consumer insights needed to reach target audiences.
How much of an issue is ad fraud in CTV?
Due to its emphasis on premium inventory and its tendency to transact via deals rather than an open exchange, CTV is generally less prone to ad fraud than other formats. However, avoiding ad fraud is never guaranteed and advertisers should remain cognizant of it like the would with any other format. Therefore, understanding the policies of all parties involved in any transaction is essential.
Xandr, for example, proactively combats ad fraud through strict inventory quality controls and collaboration with other industry leaders to help prevent invalid traffic and unauthorized inventory sales.
What are the key differences in CTV trends across APAC versus global?
According to eMarketer, Asia-Pacific is home to one of the most competitive subscription over-the-top (OTT) video markets in the world. In fact, OTT investment into Asia-Pacific spurred the fastest subscriber growth rate worldwide in 2018, rising 35.2% to 331.5 million.
However, there are certain challenges in the region, from creating localised content to obtaining approvals and low internet penetration in underdeveloped areas. As a result, we can expect region-specific partnerships to emerge to provide global companies with the resources they need to reach target audiences.
Xandr is a partner of Programmatic Punch APAC, a one-day event designed to help you duck and dive to ensure you exploit the opportunities of this new age. They will feature on the Advanced TV panel exploring the trend and detailing how advertisers can make their campaigns most effective.