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Advertising in the Age of Connected TV

It’s a click, stream, curated content revolution, and connected televisions (CTVs) are leading the charge. And with more and more consumers “cutting the cord” on linear TV in favour of over-the-top (OTT) media services, marketers are dialing into new methods of grabbing their attention.

“We’re seeing a once-in-a-generation shift in how we consume content, and it’s exciting to be laying the foundation for what connected TV is and will be in the future,” says Karen Zuccala, Head of Brand Strategy for Google. “It’s akin to when rotary phones became mobile phones and those turned into smartphones. We can’t imagine a world now without our smartphones, and in time, people will be saying the same about connected TVs.”

Known also as “smart TVs,” CTVs are traditional television sets with the tech to access the internet and online apps. They enable viewers to not only watch linear TV, but also click into a curated menu of streaming services, surf the web and access other Web 2.0 content.

“I liken it to a bridge,” says Christina Summers, Country Manager, Canada, with Roku. “On one side, you have the traditional TV that’s been around for years. On the other, you have this whole digital, online space. Connected TV is the bridge that connects those two worlds and uses digital pipes to do much more in terms of focused content and advertising.”

It’s a natural next step for content consumption, driven by advances in digital delivery and growing consumer preferences for more personalized, on-demand media services. It’s also a relatively new landscape for marketers and advertisers that poses lucrative opportunities to those who make the leap.

“The disruption we’re now seeing in the TV space and connected TV is incredibly fascinating, but it’s also about time," adds Zuccala. “Now’s the moment, more than ever, that we need to explore and innovate within the world of TV. To me, that’s exactly what connected TV is all about.”

Changing Channels

With CTVs on the rise, advertisers are challenged to follow consumers into new digital turfs. Those that take pursuit have an opportunity to find and connect with their target audiences on a more granular and customized level, one based on specific interests, preferences and viewing habits.

“With connected TVs, consumers have access to personalized content on their time, not on a fixed schedule. That leads to more engaged viewers who are watching what they personally value and enjoy versus what’s purely available,” notes Zuccala.

“At the end of the day, we’re not in the business of deciding what an amazing show is,” she adds. “Consumers do all that hard work and tell us that; we just need to listen to them.”

Operating in digital channels provides marketers with insightful, data-driven metrics that help marketers fine-tune their strategies and messages.

CTVs are enabling advertisers to get more innovative with their marketing. For example, in addition to placing traditional 15- or 30-second ads inside a streaming show or online video, advertisers might also work with platforms to embed clickable banners, on-screen links or QR codes that direct consumers to more information and purchasing opportunities.

There are also benefits of using a platform’s content network to create expanded branding experiences. Summers says, “We can bring brands and curated content together to create experiences within the connected TV space. For example, a brand can come to us and say they want to sponsor Halloween-related content. We can then work with our channels and content partners to aggregate and hand-pick the right Halloween content and present it to consumers in a branded package.”

Using consumer metrics and viewing habits to inform marketing strategies is nothing new in the world of TV advertising. CTVs, however, put consumers at the centre of the TV viewing experience, enabling marketers to find, connect and track target audiences on a deeper and more bespoke level.

Making It Click

Advertisers are no strangers to market innovation and disruption. Even still, trying to connect with digitally savvy audiences in an increasingly fragmented space can make any marketer anxious.

To that end, trailblazers in the CTV space are also working on their end to help advertisers navigate the space. For example, Google’s Display & Video 360 (DV360) platform helps advertisers design, deliver, measure and unify their campaigns across the internet, as well as the entire CTV ecosystem. Meanwhile, Roku makes its own research, digital tools and CTV advisors available to its marketing partners to help make the best use of the Roku platform.

It can all seem a bit overwhelming at first, especially for advertisers who have yet to venture far into the vast digital streaming space. For those taking their steps, Zuccala suggests starting with what they know: “If you’re a brand, my best advice is to focus on the same currencies for connected TV that you’ve always looked to from your video investments – reach and frequency.”

“That’s why we’re so excited about what platforms like YouTube can deliver in this space,” she continues. “Platforms like ours bring video on connected TVs in people’s living rooms with unparalleled scale and frequency, but also offer the simplicity of allowing you to plan on the currencies that really matter."

Indeed, reaching consumers through CTVs doesn’t require learning new industry language or technological terms. Instead, it’s about applying advertising fundamentals to a richer, more interactive space, and leaning on specialists in that space to make the best impression.

As Summers states: “We’re only getting started with connected TVs, so it’s understandable that advertisers are a little hesitant and still trying different models and approaches as they learn how to use it. That’s all to be expected, and the best advice I can give is to simply get started with whatever platform you think is going to work and reach out to the people behind those platforms to figure out what works best.”

Enter: AVOD Marketing

Ad-supported video-on-demand content (AVOD) is exactly as it sounds: streaming content services that consumers can access for free but include embedded ads. According to Roku’s 2021 report, 50 per cent of Canada’s TV streamers regularly use AVOD, and four in five AVOD viewers use another device while streaming, giving brands additional (and innovative) cross-screen opportunities.

77% of Canadians were watching streaming content by the end of 2020
4 in 5 consumers are TV streamers, versus 3 in 4 who pay for traditional TV
75% of boomers say, “The variety I get from streaming is impossible for a cable/satellite/telco TV service to match.”

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