This first appeared in the AdNews April edition. Check out the whole magazine here.
Advanced TV services are on the rise, shifting consumer viewing habits and ad spend.
Streaming services like Apple TV+ and Disney+ have launched globally, and we’ve seen more local content in Australia from the likes of Foxtel’s Kayo Sports and Nine’s Stan. These new offerings have grabbed the attention of audiences who are willing to expand their subscriptions beyond those already established, like Netflix and Amazon Prime.
With over 11 million Australian Netflix subscribers* and 31% growth of streaming video on demand (SVOD) services last year*, all signs point to continued momentum in the sector. This means consumers will only become more accustomed to ad-free content, presenting a real challenge for brands trying to reach viewers.
Advertisers need to feel confident that ad spend is enabling them to meet business goals as they aim to connect with consumers across media types that are deemed premium, brand safe, viewable, and fraud-free. But using data at scale across services is getting harder, not easier. Marketers need brand safety and viewability to pinpoint where their marketing efforts are most effective, and tie media exposure to true KPIs.
So, what exactly do advertisers need to consider in order to meet their business goals in the age of Advanced TV? We have broken it down.
1. What does Advanced TV mean?
There is often confusion associated with content delivery models beyond traditional “linear” TV. Advanced TV encompasses several formats, with key terms including:
- Addressable advertising: serving ads to specific households based on demographic data
- Over-the-top (OTT): TV-like video content delivered over the internet, bypassing the TV infrastructure
- Connected TV (CTV): a device delivering content via an internet connection, like streaming devices and gaming consoles
- Data-Driven Linear (DDL) TV advertising: ads delivered based on insights from set-top TV boxes
2. How can advertisers prepare for it?
Several factors are critical to advertisers reaching their target audiences across screens and at scale: technology that provides high-fidelity audience segments, access to premium content, and a trusted platform infrastructure.
3. What does the future hold?
Based on what we’re seeing in the landscape today, it’s clear that the future of TV will be a mix of paid-for and ad-funded TV services consumed on a variety of devices. While still in early stages, programmatic delivery of Advanced TV advertising, in which tailored ads are automatically bought and displayed to audiences, will mature and drive the growth of ad-funded TV.
Key to future growth of Advanced TV will be evolved measurement standards that link linear TV and digital offerings – something OzTAM’s VOZ is seeking to achieve combining linear TV and broadcast video on demand (BVOD). Similarly, telecoms businesses and smart TV manufacturers will play a large role in the Advanced TV ecosystem, as their data will be essential for advertisers’ understanding of their campaign performance.
While periods of transformation can bring uncertainty, as long as global markets continue to adopt the right technology and take advantage of the opportunities presented by new consumer touchpoints, the future heralds a golden age of cross-screen advertising.
Sources: *Roy Morgan Pay TV and Subscription Video on Demand (SVOD) research 2019
*PwC Entertainment and Media Outlook 2019 - 2023
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