i3 - November/December 2020 - 34

Business

By Gary Arlen

C S PAC E

Connected TVs, an
Advertising Darling

 C 

onnected TV (CTV) is moving beyond
the smart TV category and becoming a viable - albeit still small -
part of the video advertising landscape,
thanks to its ability to deliver targeted ads
and its measurability. A recent study by
Tremo International's Unruly subsidiary found
that CTV commercials are 50% more memorable
than ads on linear TV, while another analysis characterized CTV as driving the digital video juggernaut as more
families embrace streaming video.

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Several other CTV factors appeal to
advertisers, according to Unruly. After
seeing an ad on CTV compared to seeing
a linear TV commercial:
● 71% are more likely to tell a friend
about the brand
● 53% are more likely to search for
the brand
● 48% are more likely to have an
improved opinion of the brand
● 52% are more likely to buy the product
Unruly Vice President Terence Scroope
says viewer embrace of CTV is "an opportunity for brands to reach audiences at scale
in a highly targeted, personalized way."

Watching Together

Nielsen, the ratings powerhouse, also
explores the emerging CTV environment
(in the COVID era). It finds "the persistent high levels of CTV use across smart
TVs, internet-connected devices and
game consoles suggests that life in the
new normal includes a heavier dose of
connected TV use."
Citing the "array of content options,
ranging from streaming apps to gaming
and over-the-top channels," Nielsen says
the variety "is a critical element behind
the increased usage." It adds, "That
speaks to the massive attraction that
connected media offers."

Another Nielsen finding shows
CTV viewing primarily happens in the
living room - about 62% of viewing
time versus 17% of viewing time in
a bedroom or 2% to 4% in a kitchen,
office or other location. Nielsen
says that points "to the growth of coviewing as consumers choose to watch
content together."

Measuring the Results

10th Degree, a digital advertising
agency, has identified substantial twoscreen use as CTV viewers shop via
their mobile handsets while they are
watching a commercial. But promoters
admit this category still needs better
measurement tools. A 10th Degree
white paper calls it "The Big Caveat."
"CTV has no universal 'measurement
currency,' which means there is no efficient way to measure audience size and
makeup across multiple apps and
devices." 10th Degree laments that "billions of dollars have been held back
from CTV advertising for fear that
measurement will be too tricky to get
right." It expects more advertisers will
"jump on board" as soon as a "more formalized attribution system" is in place.
With all this attention, CTV commercials seem ready to be counted.

Ostapenko Olena/Getty Images

According to the Interactive Advertising
Bureau (IAB), CTV's appeal to advertisers is stable amidst the upheavals in traditional TV advertising. IAB estimates
the average CTV spend this year will be
$16 million per advertiser, up 8% over
2019. The CTV ad-buys reflect a shift of
dollars from broadcast TV (53%) and
cable TV (52%), according to IAB. The
major categories and the amount being
spent on CTV ads this year are retail
($32.2 million), media/entertainment
($31.9 million) and telecom ($20.6 million) - mainstays of TV advertising.
Another CTV advertising study from
Unruly, a programmatic video platform
firm, identified that more than half of
media buyers ranked three benefits of
CTV advertising as the most valued: targetability (75%), engagement/attention
(57%) and measurability (52%). Other
desirable features are the ability to
report campaign results faster than via
linear TV, shorter campaign activation
lead time and co-viewing.
The Unruly research indicates over
60% of U.S. homes own a smart TV and
about half own a streaming media device.
The summary also shows that about 45%
of owners use the smart video capabilities
more than five times each week. In other
words - critical mass for advertising.

I T I S I N N O VAT I O N

10/20/20 10:23 AM
i3 - November/December 2020

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