Over the past year, content publishers have changed the way they promote their content. Given the longevity of the COVID-19 pandemic, which continues in many countries, these changes are becoming permanent. Furthermore, advertiser demand for video impressions has always exceeded supply.
Therefore, it continues to grow as more and more consumers use streaming video technology.
This is especially true for connected television (CTV), and most of those impressions are made available programmatically.
The pandemic has supercharged consumer behavior: For example, according to eMarketer, CTV ad spending will experience its biggest growth in years in 2021, rising 40.1% to $11.36 billion in the US. Also, about 60% of CTV inventory will be purchased programmatically in 2021.
60% of CTV Inventory will be purchased programmatically
Thanks to increased uptake during the pandemic, CTV-based content is becoming as popular with boomers as it is with the younger generation.
In addition, CTV viewers are younger and more affluent, with 86 percent of Millennials and Generation Z watching CTV regularly.
As a result, more channels are appearing, and new apps are appearing, making it a great time for video publishers and producers to move to CTV.
You can’t have your cake and eat it.
The rise of CTV and the opportunity it offers should be taken with reference to the decline of third party cookies. In January last year, Google announced that it would end its support for Chrome-based third-party cookies within two years.
And where this Internet giant goes, the rest of the industry should follow – whether it wants to or not. This is compounded by increased data privacy legislation in many parts of the world, such as the General Data Protection Regulation of the European Union.
The Death of Third-Party Cookies — a Challenge.
The end of third-party cookies represents a significant challenge for advertisers, who are able to play content tailored to their target audience based on the information collected by cookies. CTV-based ads, which target consumers via their television rather than their computer, offer an alternative, allowing advertisers to take action based on the priority of viewing their campaigns, without compromising on the data privacy of viewers.
Allows for the collection of relevant information.
An astronaut, a doctor, or a vlogger: who owns CTV content?
The rise of CTV was preceded by an explosion in vlogging and other forms of video content published on sites such as YouTube.
Ask elementary school kids what they want to be when they grow up. One of the most common responses may be an ‘influencer’ focusing on having their own video channel or joining a channel aggregator.
As the social media savvy explores how to turn video platform sites into a lucrative opportunity, innovators will find that CTV offers an equally promising environment.
Ryan’s World, a channel focused on children’s entertainment content with 25 million subscribers on YouTube, joined Roku in 2019 to serve as a pioneer.
The industry’s big guns, represented by CTV platforms like Apple TV and Amazon Fire, are creating a market of their own. Location.
This space works by giving access to different content creators and also offering special services like live sports streaming.
Many already produce their own movies and TV series, while also hosting a host of channels focused on travel, health and beauty, cooking, gaming – the list goes on.
How do you compare YouTube and CTV?
It may be inappropriate to compare YouTube and CTV as an ecosystem in general. But still, according to Vlogbox research, there are publishers of animation and vlogging verticals that report CPMs reaching $8 on CTV channels.
In addition, CTV offers content creators several different advertising models to choose from, including subscription video on demand (SVOD), transactional video on demand (TVOD), and ad-based video on demand (AVOD). These provide content creators and businesses with greater operational flexibility.
Gaming as a field has also shown a great success in terms of the development of advertising environments. According to Samsung Ads, gamers in the UK, Germany, France, Italy, Spain play around 2 hours a day. With advanced TV viewing, gaming verticals cover more than 80% – meaning viewers barely have access to traditional TVs.
This is why connected TV appears to be a promising area, from advanced targeting, home page advertising to precise analytics and new formats.
Breach between SPO and DPO
Successful content creation cannot be successful without a strategy that will help it succeed, which is why it is important to understand Supply Path Optimization/Demand Path Optimization (SPO/DPO).
SPO refers to how raids are collected in order to enable creators to identify what they are doing.