Will Keggin, Director, Advanced Advertising, UK at LiveRamp, looks at the future of connected TV.
Connected TV (CTV) is gaining momentum in the UK, not only for consumers, but also for the advertising industry, where the fastest growing pool of inventory is now accessible. This inventory offers advertisers greater efficiency in reaching audiences and provides marketers with identity resolution tools to leverage alongside sales and transaction data, and even dive beyond the ROI of countryside.
The data is clear on the format’s popularity with consumers. Smart TV ownership has exploded from 11% of UK households in 2014 to nearly 67% of UK households in 2021. And consumption via these Smart TVs continues to rise year on year; Ofcom’s 2021 report found that total viewing of audiovisual content increased by 47 minutes to 5 hours 40 minutes per person per day in 2020, compared to 2019.
With 80% of UK households having at least one internet-connected TV, it is clear that the ripe opportunity and growth of CTV is closely tied to the increased ownership of smart TVs.
Growing addressable inventory also gives all current TV advertisers, and potentially newer TV advertisers, greater targeting options to create effective reach. Advertisers and their agency partners want to make purchases based on a consistent audience definition across inventory. Broadcasters would increase the size of the TV market, attract more advertisers and different types of budgets by offering their customers a safe, easy and consistent way to use their audience definitions on valuable TV inventory.
As connected TV grows in popularity, the opportunities for television advertising have transformed, paving the way for targeted CTV advertising. The benefits for the advertising industry are clear. Additionally, getting the most out of advertising investments is best achieved with CTV because it is measurable and accountable.
The prospect of pursuing advertising strategies that have a better and clearer return on investment is vital. CTV is creating a connective ecosystem that allows brands to connect production and see omnichannel reach across all platforms while ensuring broadcasters continue to see the business benefits.
Indeed, 67% of advertising professionals in the UK think CTV is a more effective advertising channel than linear TV, showing CTV’s growth opportunities. Recent research reveals that over 77% of brands would like to invest more in CTV advertising over the next 12 months. The rationale for this investment is split between profitability (52%), the ability to measure and attribute performance (48%), and because it is effective for brand campaigns and achieves campaign goals ( 38%). With the perfect storm of people spending more time on their couches watching TV and the imminent end of third-party cookies – the CTV turf is ripe for growth.
Another advantage is that CTV operates in a cookie-free environment, promising privacy and addressability beyond the next few years. As we near the end of third-party cookies, marketers are turning to cookieless growth channels, such as connected TV, that prioritize privacy and addressability. The opportunity for broadcasters, marketers and consumers to benefit is immense as we head into the new year.
We have already seen this growth trajectory in the US and France – and the UK will not be far behind. But collaboration will be key to unlocking the potential of omnichannel advertising.
Brands and media sellers need to be able to securely connect multi-screen data such as ad impressions for advanced business applications including closed-loop measurement and collaborative analytics. All parties need to be able to manage their data, but also collaborate many-to-many as needed.
On the sell side in particular, TV players will seek to cooperate to gain access to data and inventory while retaining control of their own. Audience measurement is the starting point, but then brands need to be able to activate their own audience definitions and measure the effectiveness of their TV advertising – not only to score and achieve goals, but also for commercial results – if television wants to be competitive. for budgets that continue to migrate to global video platforms at scale. To retain and grow investments in television, greater collaboration is needed between buyers and sellers to make data use safe and easy to use, and to make television a better investment.
Given all of this, we expect CTV to continue its explosion in 2022, riding the wave of changing viewer habits and broader advertising industry trends. In this new normal, best-in-class brands will stand out through their data investment and collaboration with their TV partners.
Advanced advertisers will continue to demand better measurement and transparency of their media investments. We’ll move beyond audience measurement (who saw a TV ad and how many times) to measurement based on results, link views, customer behavior and sales. As SVOD now challenges traditional television for time spent and reach for any audience under 45, all brands will demand better access to data to break down channel silos and find the most cost-effective way to expand the added reach of their TV budgets. .
Media buying agency structures and technology will need to evolve to meet advertisers’ demands; we’ll see the internal team silos broken down to realize the ambitions of true cross-platform video or “Total TV” planning and enablement. To achieve these goals, agencies will need to access the right datasets and ensure they can be consistently applied to their clients’ campaigns in a safe and secure manner. Accessing the right data will require the right technology; some will build, while others will meet customer needs for transparency and portability by leveraging their expertise on third-party technology solutions.
For TV platforms and publishers, 2022 will be the biggest year yet for collaboration, with deep relationships leading to consolidation around inventory markets and even sales teams, with Channel 4 potentially up for sale.
Finally, data usage in TV and CTV will explode, and perhaps the most important area to watch is how the CPG datasets of the UK’s biggest retail loyalty programs will be used. in the television space.