Alex Spurzem, Samsung Ads Australia GM.
Business confidence is returning as normal life gradually resumes, albeit with a healthy dose of caution. Consumers who sat on their savings during the pandemic are willing to spend and the economy is looking robust (fingers crossed).
Ad spend is also on the rise as the competition for consumer dollars heats up. CTV is a medium that has come of age. Its ability to harness the power of broadcast TV alongside digital targeting and measurement capabilities means it has a strong role in omnichannel media campaigns.
Advertisers and agencies now have a greater understanding of how it works alongside linear TV by providing brands with incremental reach and the ability to tap into hard-to-find new audiences. EMarketer found that 60% of Australian advertisers are now investing in CTV.
The advertising landscape is always fast-moving and the start of a new year is an opportune moment to look at trends about the increased role and relevance of smart TVs and streaming.
Here are four trends likely to have an impact on a marketer’s decisions around the media mix in 2022.
1. Streaming consumption will soar but viewers will need fresh content
More and more consumers are enjoying the streaming experience and Australia has the highest subscription OTT share of digital video viewers across the whole of Asia-Pacific, at 68.3%.
Smart TV penetration in Australian homes stands at 44%, and is growing. We can expect Christmas to give the numbers a boost, giving advertisers ever-expanding potential reach. Samsung’s own smart TVs can collate valuable first-party data on viewing habits thanks to proprietary Automatic Content Recognition (ACR) technology. Our data shows that streaming daily time has increased 45% over the recent lock down period compared to linear which is up 14% over the same period.
They are eager to discover new content to feed their habit but pandemic disruption of production and release schedules means they will range wide to discover new sources of content. Rising SVOD prices may also mean greater viewing as households contemplate the affordability of multiple subscriptions. Ad-funded VOD where users pay less (or nothing) to watch whilst seeing fewer ads than on free-to-air TV is a strong offer and it’s a safe prediction that the ad-supported streaming landscape will mature in this country over the next 12 months.
2. Deeper audience insights will drive new ad offerings
The latest round of Upfronts showed that the broadcasters are betting big on technology as the key to success in 2022. The ability to glean deeper audience insights can help shape both the viewing experience and the offer to advertisers.
Nine was the first mover to focus on logged-in users and is now sitting at 14 million a month, while Seven announced its intention to move into converged buying with the launch of Code7. Meanwhile, 10 confirmed a new premium ad product for 10Play called Dynamic eTrading Placement.
Samsung Ads is heavily investing into complementary solutions such as the aforementioned ACR technology that enables advertisers to better plan, activate, and measure their TV buys. It’s just one example of the way Samsung Ads isconverging linear TV, connected TV, and digital video.
The combination of smart TV hardware, sophisticated technology and even content in the form of the free TV Plus channels means we can get close to the viewer and are well-placed to surface data-driven insights valued by marketers.
By providing optimised planning capability and insight, broadcasters and streamers can help advertisers build a deeper customer relationship strategy and establish the trust so important to brand success.
3. First party data will be the key to a great customer experience
First party data has never been more important given the death of the cookie and a consumer weary of being served irrelevant ads via clumsy retargeting.
The TV sector is well-placed to provide advertisers with an environment and targeting much more likely to engage potential consumers. Broadcasters can gather information with full permissions via the requirement for a login to use their AVOD and BVOD apps. This first party data means together with advertisers they can craft a better experience for their viewers – one that will help build trust in brands and deliver sales.
Brands are more conscious of where their ads show up – and the damage that can happen if they have no oversight or control on placement. CTV offers a regulated and brand-safe environment. It is becoming a safe harbour for advertisers looking for high impact campaigns on the biggest screen in the home accompanied by the data and targeting of digital to allow both contextual and cohort-based targeting.
As channels outside of television scramble to pick up the crumbs from the crumbling cookie ecosystem and attempt to navigate the full impact of reduced tracking over iOS, advertisers will even more appreciate CTV and its safe environment.
4. TV to rocket as the home hub for gaming and family viewing
The Digital Australia 2022 report shows that Australians spent more time streaming and second on the list was gaming. The take up of gaming as a mainstream interest is another trend that existed pre-pandemic but was accelerated by lockdown.
On Samsung TVs in Europe, gamers tend to index higher than other segments when it comes to streaming. On average, our gaming audience spends 45% of their total daily TV time streaming, 37% gaming, and only 18% watching linear TV.
Doing the math, this means that 82% of their time is beyond the reach of the traditional TV market. There are few opportunities to reach gamers on their consoles. But through CTV, we can identify and reach gamers before they log into their devices.
The number one perception of the need of a TV is that it connects with other devices – given the huge investment in social commerce capability by channels and platforms I’d expect an explosion of interest from consumers.
The conversations I’ve been having with agencies suggest that marketers are keen to tap into this growing toolkit. Viewing habits are continuing to shift and we’ve seen evidence that campaigns that feature a linear and CTV element can be more effective and complementary to one another.
Streamers are hard to reach through linear TV, and media planners are looking at how to use CTV to fluidly extend the reach and capabilities of their brand and performance campaigns. Advertisers must adjust their strategies to connect with these audiences and get ahead of the curve as these platforms continue to grow.
All in all, the coming year offers great opportunities for brands to optimise their media strategies thanks to innovations in streaming technology and rapid changes in consumer behaviour.
Have something to say on this? Share your views in the comments section below. Or if you have a news story or tip-off, drop us a line at adnews@yaffa.com.au
Sign up to the AdNews newsletter, like us on Facebook or follow us on Twitter for breaking stories and campaigns throughout the day.