The Future of CTV: Navigating Omnichannel Advertising Strategies

In the dynamic world of digital advertising, one trend has surged in popularity in recent years: Connected TV (CTV). Having been a somewhat overlooked marketing channel for more than two decades, the medium saw significant growth during the global pandemic.

Now a burgeoning trend among advertisers and brands, CTV has emerged as a pivotal element in omnichannel advertising; especially for leveraging engaging video assets that captivate target audiences.

The integration across diverse mediums presents abundant opportunities for brands to engage with audiences in innovative ways. Emarketer’s research indicates that by 2027, UK ad spend on CTV will reach £2.51 billion¹. Despite this, the CTV market in the UK is still relatively nascent, not yet having reached full maturity.

Advancing marketing strategies with CTV

With the average global screen time of UK adults reaching approximately 6 hours and 37 minutes per day across various platforms and devices², CTV ecosystems serve as a vehicle for delivering compelling video advertising content on smart TVs, directly or through set-top boxes, game consoles, and streaming sticks.

Strategic partnerships stand at the forefront of CTV evolution. For example, some of the biggest streaming brands, including Warner Bros. Discovery, ESPN / Disney and Fox Sports in the US are bundling their fragmented offerings into one app, while retail giant Walmart’s gets access to first-party viewership data after striking the deal with Vizio.

Even in its increasing popularity, thanks to the substantial boost from the pandemic, the addition of CTV to omnichannel campaigns still raises some hesitations among marketers. Our study has revealed that over six in 10 UK marketing decision-makers never include CTV advertising in their marketing strategy³, with concerns stemming from a knowledge gap regarding the true benefits of the medium, coupled with perceived high costs involved compared to other marketing channels.

As a result, due to the lack of understanding, marketers are missing out on potentially lucrative commercial opportunities by not leveraging CTV as part of an omnichannel strategy.

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Delivering content across screens

Generationally, people’s average daily screen time using TV/streaming is rising² , with many using a smartphone as their second screen while watching content on a TV set. This emphasises the importance of multi-screen omnichannel solutions that help advertisers to meet consumers where they are via shoppable ads, QR codes or any other CTV-to-mobile elements.

When optimised, CTV ads are very effective at driving visual attention in areas-of-interest within an ad itself, boosting relevance and brand results. The addition of QR codes within a CTV ad optimisation is particularly impactful at delivering brand results.

Our latest results have demonstrated that an omnichannel solution can deliver as much as a 67% lift in ad recall for a combination of CTV and mobile ads, compared to ads in a standalone mobile environment. As for the creative, video will continue to serve as a cornerstone for most omnichannel strategies, naturally evolving the decision-making process to include CTV considerations.

With studies highlighting two in five UK consumers trying to ignore ads when watching TV², new technologies, such as AR (Augmented Reality) and data-driven targeting capabilities can help advertisers create tailored and memorable ad experiences, and in turn, deliver great business outcomes.

This also extends to the CTV display piece and the opportunities presented by native ads on smart TV home screens. CTV native display formats are garnering great interest from brands due to their premium quality and ability to reach a wide audience, including those not using ad-supported streaming television or those who prefer to watch broadcasters’ content online, like sports fans.

This is especially important, as our data shows that streaming sports via a TV at home is by far the most favourable option for people in the UK, with a third of UK consumers saying they watch big sports via a CTV device and a quarter of them opting for a TV via cable or satellite².

Forming solid data foundations

The shift towards more engaging content experiences for both consumers and brands highlights the necessity of CTV elements in capturing and retaining a higher proportion of viewer attention.

Best practices and the rapidly changing industry naturally emphasise the need for agility and forward-thinking from advertisers seeking to harness the power of CTV. A robust measurement framework not only guides, but empowers every facet of the pipeline, from client engagement, asset optimisation to targeting decisions.

Underpinned by data, CTV targeting includes traditional audience targeting as well as contextual or genre targeting. The latter involves tailoring ads to align with the specific content genres that viewers are consuming, thereby increasing engagement by ensuring that ads seamlessly fit within the context of the content being watched.

The future of CTV as part of omnichannel strategies shines brightly. As we navigate the complexities of modern advertising, one fact remains clear: those who embrace CTV, creativity, and consumer-centric omnichannel strategies are poised for success.

Sources

1. UK Connected TV Ad Spending Forecasts: EMARKETER Estimates and Historical Data
2. Screen time statistics 2024 | The Independent
3. CTV Pulse Report 2024Additional sources for info included:

– Teads Studio – CTV Advertising: The Next Frontier – [Source]
– Teads Data Solutions – Unlocking the Power of Data – [Source]
– Teads Ad Manager – Optimize Your CTV Campaigns – [Source]

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