In 2014 just 11% of UK households owned a Connected TV. Today, 57% of homes now have access to one, with 26% of total time spent online now taking place on a CTV.
Yet, while Connected TV usage has increased significantly, brands and agencies have been slow to catch on, potentially missing out on a wealth of opportunities to deliver cohesive campaigns across multiple platforms.
One of the reasons for this could be fragmentation on the supply side: with all major broadcasters wanting a slice of pie – and numerous third-party vendors snapping at the water – working out where to start can be difficult.
Awareness is another issue. Despite CTV’s rise, we are still largely wedded to the tried-and-tested linear TV buying model. There is, of course, nothing wrong with this: television advertising in its traditional form is still a powerful brand-building tool and will remain so long into the future – it’s also what most media agencies are used to, with the 30-second CPT a staple of campaign planning.
What CTV offers is a shared space where linear, BVOD (broadcaster video on demand) and even the likes of YouTube can be planned, optimised and reported on holistically. This capability represents a new frontier rich in potential: from creative optimisation, to addressable targeting and cross-channel reporting.
It’s no secret that the way we consume audio-visual content has changed in recent years. Though linear TV remains unrivalled in the scale, coverage and ROI it offers, it’s increasingly watched by an older demographic. Viewers aged 16-34, on the other hand, have migrated to on-demand content in large numbers – to the extent that campaigns targeting young adults increasingly rely on BVOD for efficiency and reach. It’s upon this backdrop that the case for CTV becomes a compelling one.
Linear and BVOD are, of course, two sides of the same coin; savvy marketers customarily run campaigns with placements across both to maximise reach. Together, they dominate our viewing habits, accounting for 82.5% of the 4 hours of content watched daily by the average adult (64.1% for 16-34s). What’s more, 70% of this viewing takes place on a TV screen, with the living room now a hub for all kinds of video content.
Yet despite this, many advertisers still measure linear and BVOD separately. While this can be useful in understanding how specific platforms perform, true campaign cohesion can only be achieved by zooming both in and out, measuring in micro and macro detail. A layered approach is required, leveraging data to drive strategy in a world where the average person is now signed up to two VOD platforms and interchanges often.
Connected TV is all well and good if you can tap into ad breaks of course, but what about SVOD? These four letters have been troubling marketers ever since they signed up for a Netflix account, but should we really be worried?
Going back to average viewing time per day, subscription video-on-demand platforms such as Netflix and Prime attract just 11.6% of total video viewed by all adults, rising to 26% for 16-34s. These figures add a little perspective amidst the doom-mongering.
There’s an even deeper point to be made about the future sustainability of subscription services. Consumers will only countenance the periodic rise in fees needed to bankroll original content for so long. We are approaching a tipping point that will see ad-funded (AVOD) models grow in prevalence.
With rumours suggesting that Amazon is preparing to launch its ad-funded IMDb TV streaming service in the UK later this year, and Netflix welcoming BARB measurement on its content, the indication is that SVOD’s biggest hitters know the time for change is coming. And there’s an eppetite for such change, too, with over 60% of consumers claiming they would happily accept ads if it meant accessing quality content for free. It’s clear that this kind of value exchange is something forward-thinking platform providers must tap into.
Guerillascope has been working towards a future of true connected TV for over twenty years – and we’d love to help you too. To find out more about the possibilities available to advertisers looking for more cohesion and efficiency in their video advertising strategy, contact our team of experts today.