Connected TV in Canada

Transcription

1 Connected TV in Canada

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3 CONNECTED TV A BYTE-SIZED OVERVIEW INTRODUCTION Connected TV is a quickly growing advertising format in Canada s digitally-driven marketplace. emarketer estimates that over 40% of consumers in Canada own a Connected TV Device, and expects this number to climb in the years ahead. Offering the lean-back experience of TV, but the targeting of digital advertising, marketers are increasingly embracing the format, eager to reach consumers in their living room with more relevant messaging. This Knowledge Lab covers everything you need to know about Connected TV in Canada. WHAT IS CONNECTED TV? A Connected TV refers to a television connected to the internet. There are several ways a TV can be connected to the internet: Via a built-in capability in the TV itself (known as a Smart TV) Through another device such as a Blu-ray player Through a game console such as an Xbox Through a device such as Apple TV, Roku or Chromecast It s estimated that the number of Smart TV users will grow steadily in the years ahead, as more new TVs are sold with internet capabilities built-in. Devices Owned by Consumers in Canada 89% Desktop/Laptop 75% Smartphone 54% Tablet 44% Internet Connected TV HOW DOES CONNECTED TV VIDEO ADVERTISING WORK? Source: emarketer, 2016 Video advertising in Connected TV occurs during the in-app experience. For example, if a Connected TV user opens an app such as Crackle to watch an episode of Seinfeld, a :15 or :30 video ad would play prior to the content starting. In this way, the experience is similar to a pre-roll ad watched on a laptop or mobile phone, but the user experience is more like a linear TV ad. For Full Episode Player VOD content, Ad Pods might also appear via midrolls throughout the content, simulating the linear TV experience even further. Watching this type of content via a Connected TV (for example, a live sporting event) works quite differently from a technical perspective: a live stream already has a set of ads included into the content stream; currently those ads are either left in the stream as is (Connected TV viewers get the same ads as the consumers on linear TV), or those ads can be dynamically replaced in realtime. The replacement of the existing ads in a live stream requires additional technology, Digital Ad Insertion (DAI), to make that happen. CTV, OTT, What s the Difference? While the term Connected TV refers to a television set connected to the internet, Over-the-Top (OTT) refers to video content viewed via an app or website that bypasses (goes overthe-top ) of traditional cable or other distribution channels, and can be watched on various devices. Examples would include Netflix, Hulu, or a network streaming app like WatchESPN. * Source: emarketer, 2016

4 CONNECTED TV A BYTE-SIZED OVERVIEW HOW ARE CONNECTED TV ADS TARGETED? The data used to target Connected TV ads to consumers can be sourced from 3 buckets. Authentication Data In this scenario, an app, such as Hulu, would use the anonymized registration data tied to a user s account when authenticating against the Hulu app. Another approach is for app owners to tack on additional data to their users via partnerships with 3rd party companies like Experian. This provides a robust deterministic solution for Advertisers. Device Owner Data In this example, a Connected TV app (publisher) would use privacy-compliant data available by the device via an SDK (Software Development Kits), based on information a device owner has provided. For example, Roku has built an Advertising Framework that allows Advertisers to enable consumer targeting and frequency capping solutions. Properties of the Request This bucket utilizes data obtained via the different properties of an ad request in a privacy compliant manner to reach their desired audience. It is to be noted that unlike the other two solutions, the data used may not always be consistently available. Examples include using content meta-data as a proxy audience (like traditional linear TV targeting) or using an IP address to provide a key for data lookup (an approach used by Videology and Tru Optik, which you ll read about later.) At times, even mobile IDs (IDFA and GAID) can be used to apply data (for example, Chromecast consumers streaming from their mobile phones.) WHAT ARE THE BENEFITS OF CONNECTED TV ADVERTISING? Connected TV offers the targeting of digital, with the lean-back experience of TV. In other words, when a consumer watches Connected TV, they are experiencing it in the same way they would watch linear TV on a big screen, likely relaxing on their living room couch or their bed. When compared to the small mobile screen, a Connected TV ad is more immersive and relaxed, and often delivers higher completion rates than computer/laptop or mobile viewing. When compared to traditional TV, Connected TV provides an opportunity to reduce waste with greater targeting opportunities. As a digital-based medium using common data sets to other digital devices, Connected TV also provides the ultimate opportunity for optimized cross-device strategies; however, Connected TV inventory must continue to grow in scale to take full advantage of the cross-device opportunities that are possible

5 CONNECTED TV A BYTE-SIZED OVERVIEW HOW IS SUCCESS MEASURED WITH CONNECTED TV ADVERTISING? Because it is a combination of the TV experience with digital targeting, measuring success in Connected TV can be somewhat challenging. Today, Connected TV is seen as a digital screen, similar to a laptop or a mobile screen, and is reported on as such (impressions, reach, etc.) There are ways to take measurement a step further, for example by adding a sales attribution study to the results, or tying Connected TV viewership to foot traffic via a mobile location-based approach, for example, allowing a fast-food advertiser to see how serving an ad on Connected TV can drive people to visit their stores. But the challenge with considering Connected TV a digital screen is that it doesn t account for the fact that there are likely multiple viewers watching a television set, versus a laptop or mobile phone that most likely just has a single viewer. Recently, in a move that signals a shift towards more TV-like measurement, Roku has announced that it will now allow advertisers to buy against Nielsen s Digital Ad Ratings, providing them a better view into who, exactly, is watching their ad when it is served. While there is still work to be done when it comes to Connected TV measurement, opportunities like the one presented by Nielsen and Roku show that the industry is actively working on Connected TV measurement solutions. Since it is a hybrid between digital and TV, Connected TV measurement could skew in either the direction of digital or TV depending on the needs of the advertiser and overall campaign objectives. Utilizing one these two approaches offers an immediate way to incorporate Connected TV into TV and video campaigns. Of course, other Connected TV specific measurement metrics may develop over time that offer alternative approaches. ADVERTISER AND AGENCY PERCEPTIONS OF CONNECTED TV ADVERTISING Videology commissioned a study with Advertiser Perceptions to uncover the attitudes and behaviors toward Connected TV Advertising. The results revealed that the majority of advertisers and agencies are using Connected TV as part of their strategies now, with many expecting the channel to play a larger role in their future strategies. Key Findings:* Is Connected TV a digital or linear strategy? 56% of agencies and 51% of marketers consider Connected TV to be part of their digital video strategy, while a smaller percentage (23% and 10%, respectively) consider it to be part of their linear TV strategy. The rest say they don t differentiate between TV and digital strategies. Will connected TV continue to grow? 76% of advertisers and agencies say Connected TV will play a greater role in their advertising strategies this year. The Primary Advantages of Connected TV Advertising Not sure, Connected TV advertising is too nascent to fully understand its advantages The content is more brand-safe than digital video It offers a more immersive experience than digital video It brings interactivity to TV experience It allows me to reach consumers holistically across screens It allows me to reach the growing number of consumers watching connected TV It s more targeted than linear TV 12% 14% 17% 22% 24% 37% 37% Source: Advertiser Perceptions, 2017 Where are new Connected TV dollars coming from? Advertisers and Agencies are somewhat split when asked which budget their Connected TV advertising is coming from: 31% 31% 16% 13% 9% Linear TV budget Digital video budget Digital budget (not video-specific) Test/Experimental budget Integrated video budget * Source: Advertiser Perceptions, 2017

6 CONNECTED TV A BYTE-SIZED OVERVIEW VIDEOLOGY S CONNECTED TV SOLUTION On the Videology platform, Connected TV is seen as another video screen in a smart, agnostic video strategy to reach consumers wherever they are watching with relevant messaging. In fact, over half of the campaigns Videology ran in Q employed some Connected TV inventory. Recently, in an effort to continue advancing Connected TV advertising effectiveness, Videology formed a first-to-market partnership with Tru Optik that will allow Videology s advertising clients to target audiences across OTT/Connected TV screens at the household level via anonymized IP addresses. Through this relationship, Videology s clients can target specific OTT audiences by onboarding their first-party data or by leveraging third-party data from over a dozen leading providers in Tru Optik s OTT Data Marketplace. This allows clients to: Segment and target audiences across channels Plan, forecast & execute granularly targeted campaigns at the household level from first-party data or a portfolio of segments from respected third-party providers Seamlessly optimize cross-channel campaigns Verify the performance of OTT inventory and study its effect on driving performance against brand and business results VIDEOLOGY CASE STUDY: DETERMINING EFFECTIVENESS ACROSS SCREENS A major personal care brand client interested in reaching a young, male audience approached recently approached Videology to run a cross-device video advertising campaign, to measure how online media for a men s beauty product impacts offline sales lift across their entire portfolio of brands. The results showed that in this case, Connected TV outperformed both mobile and PC in driving sales rates. Lift in Sales Rate by Platform 14.17% 12.76% 9.72% PC Mobile CTV Source: Videology Platform, 2017 FOR A DOWNLOADABLE VERSION OF THIS INFORMATION, PLEASE VISIT

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8 ABOUT VIDEOLOGY KNOWLEDGE LAB Videology Knowledge Lab is an educational series meant to shed light on the key topics impacting advertisers and agencies in today s video advertising world. These byte-sized pieces will provide definitions, data and straightforward explanations of complicated subjects, to bring simplicity and clarity to an otherwise complicated industry.