As the world of Connected TV (CTV) continues to evolve, the focus is not only on the viewers but also the advertisers. This dual approach is essential as ad-supported content offerings expand and platforms develop increasingly sophisticated technologies to cater to advertisers’ needs. Interestingly, these technological advancements are also enhancing the viewer experience, creating a win-win situation for all stakeholders.
The Power of Television as a Performance Channel
Traditionally, television was primarily an awareness tool for advertisers. With audiences regularly tuning into their favorite shows or broadcasts, advertisers had the opportunity to reach millions of viewers with a single ad. However, the high costs and unpredictability of ad slots made this channel inaccessible to many brands.
The advent of CTV has revolutionized this scenario, making television advertising a reality for businesses that once deemed it unattainable. By offering precision audience targeting, comprehensive reporting, and the flexibility to modify ad creatives as needed, CTV has transformed television into a performance advertising channel similar to social media and search platforms.
Recent studies reveal that 81% of marketers use CTV for brand awareness, while two-thirds classify it as a performance marketing channel. More than half of the respondents use CTV to drive specific outcomes like measurable web visits, conversions, and revenue generation.
The Advertiser-User Experience: A Work in Progress
While many brands have started using CTV as a performance channel, some streaming giants are still grappling with optimizing the advertiser-user experience. Netflix’s failed attempts at delivering advertisement guarantees when launching their ad-supported tier in late 2022 is a case in point.
Recognizing the need for improvement, Netflix announced a series of new features on November 1, 2023, to better cater to advertisers’ needs. These features include binge ads, QR codes in creatives, sponsorships, and refined measurement through partnerships with third-party providers.
However, Netflix isn’t alone in this journey. Paramount has also refreshed its advertising platform with the launch of Conduit, which aggregates inventory from Paramount+ and Pluto TV. Conduit was designed to address issues like the separation of rival brands in ad blocks and accurately tracking ad running frequency, which are associated with CTV fragmentation.
MNTN is another player that has upgraded its adtech. Its new product, MNTN Next Gen TV, is designed to transform television into a more powerful growth engine for advertisers. The major updates include enhanced audience building, verified measurement, optimized creativity, and performance optimization.
Streamlining Viewer Experiences with Streaming Ads
Despite these advancements, viewer experiences with streaming ads can be inconsistent. Streaming platforms need to ensure that their ad-supported content offerings do not compromise the user experience.
For instance, excessive ad loads can lead to viewer fatigue and disengagement, while irrelevant ads can result in poor brand perception. To counter this, platforms need to balance ad frequency and relevancy while also providing an engaging viewing experience.
In conclusion, the success of CTV is contingent on maintaining a delicate balance between keeping viewers engaged and advertisers happy. As platforms continue to innovate and refine their adtech, they will be better equipped to meet the needs of both parties, leading to a more sustainable model for CTV’s future growth.