Tag Archives: connected TV

Connected TV Advertising is Surging

It’s no secret that connected TV devices have made huge gains in the U.S., with penetration at 60% of homes or more depending on the research source. But whereas these devices were initially used mainly for streaming Netflix and other ad-free SVOD services, evidence is building that viewers are also now using these devices to watch ad-supported video, in turn driving a huge expansion of ad inventory.

For example, Roku has been saying for a while that Netflix’s share of overall Roku users’ watch time has been steadily decreasing, with ad-supported channels gaining. And today, Beachfront Media, a video supply-side platform, said that it saw a huge jump in CTV ad requests to over 2 billion in Q3 ’17. Beachfront works mainly with mid-tail and long-tail video providers like WatchMojo, Newsy and Crunchyroll.

Beachfront’s CEO and founder Frank Sinton told me in a briefing that the company has seen completion rates of 97% and viewability of 100% on CTV inventory, the 2 main performance indicators buyers focus on. Measured CPMs are also 3 times higher on CTV than on mobile video and aren’t showing any signs of softening as CTV inventory continues to be in short supply relative to demand.

While CTV combines the best of the big screen experience with the best of digital targeting, Frank said it’s not yet clear to him which budgets CTV spending is coming from, TV or digital. However, he did say that anecdotally he’s hearing more and more interest in CTV and that 2018 is shaping up to be a strong growth year.

Why Advertisers Are Dragging Their Feet On Connected TV

by Lauren Wiener

Mary Meeker, have we got a new gap for you. Audiences are moving away from traditional television in droves. They are breaking up with their cable companies and starting new relationships with connected TV. But advertiser spending lags behind user behavior.

Connected TV has its challenges – chiefly targeting and segmenting issues, a fragmented buying space and a lack of standardized measurement in audience validation. This isn’t news to players in the space.

To unlock advertiser demand, it is going to take advancements in measurement and more granular targeting. Improvements are in the works, but we have a way to go. Hopefully, as advertiser demand increases, so too will the technology solutions, and we will begin to close the gap.

Connected TV Spending

With media consumption behaviors shifting to digital devices, viewers have been moving away from traditional ways of consuming TV content through their cable providers. The definition of “watching TV” has changed. Many cord-nevers don’t even call it TV – it is video. Already, more households have access to Netflix than a DVR.

Connected TV represented 20% of weekly time spent viewing digital video in the US in August 2016, according to a Frank N. Magid Associates study. In the US, adults spent an average of five hours and 13 minutes watching video (both linear and digital) every day, according to eMarketer.

Right now, 66.5% of US households have connected TVs – that is 82 million households. By 2021, eMarketer forecasts that number will rise to 93.8 million households.

This trend is driven partly by the emergence of linear OTT services, including Sling TV, DirecTV Now, PlayStation Vue, YouTube TV and Hulu with Live TV. Although these emerging digital services are subscription-based, they are not technically “pay TV,” which eMarketer defines as subscriptions to traditional multichannel video programming distributors (MVPDs), as opposed to services that require an internet connection.

While there aren’t any US connected-TV ad spend statistics available, we know anecdotally that it is low. Weekly time spent with connected devices represented 11% of total viewing across linear TV and digital video, according to Nielsen’s Q1 2017 Comparable Metrics Report.

When compared to the time spent for linear TV only, connected TV’s share rose to 13.6%. However, OTT ad spend is estimated to be only about 2-3% of total TV dollars. For OTT/CTV ad spend to be proportionate to the time viewers spend with it, it should be significantly higher than currently levels.

Connected TV is mainstream, but we are observing the same phenomenon as we saw with mobile: Ad spend is lagging behind consumption.

Connected TV Challenges And Solutions

Connected TV holds great promise for marketers, but right now, many can’t see past its limitations, particularly the lack of standardized measurement in audience validation for evaluating campaign reach, impressions and performance, along with data inconsistency across devices and apps.

Marketers are also put off by targeting and segmentation challenges, since connected TV is a cookieless environment with no device ID. There are some solutions in place here, like Neustar, but they don’t offer the level of granularity that other connected devices provide. It’s all done at the household level.

Connected TV’s ad effectiveness measurement is behind compared to other digital platforms. You can’t track and optimize campaigns in real time, metrics are limited and measuring attribution is difficult. Viewability should, in theory, be close to 100%, similar to linear TV, but connected TV campaigns are limited in the fraud, brand safety and viewability measurement capabilities available.

Furthermore, buying connected TV is mostly a manual, I/O-based process, and there is limited premium inventory and scale. Although ownership levels of connected and smart TVs are relatively high, the actual consumption is meager compared to traditional platforms. That is growing rapidly, though, especially among millennials and younger generations.

For example, just two years ago, OTT represented only 8% of digital video ad views. Now, it represents 32%, according to the FreeWheel Video Monetization Report: Q1 2017.

Another factor affecting marketing budgets is that OTT is disconnected from the rest of the TV industry. Buying is fragmented, which is a major obstacle to OTT and linear TV becoming one programmatic buy.

While the challenges connected TV currently face mirror those mobile faced in its nascent stages, so will the solutions. Just as mobile players worked, and continue to work, to address these problems, so, too, will the connected-TV industry.

read more here:

https://adexchanger.com/tv-and-video/advertisers-dragging-feet-connected-tv/

60% of Dutch viewers will consider cord-cutting

60% of Dutch viewers will consider cutting the cord if the three main public NPO channels are available OTT, according to research from Telecompaper.

57% of people will consider such as move if the RTL channels are available OTT, and slightly less if SBS offers its channels over the top.

The research is good news for NLZiet, the Dutch on-demand platform with programmes from all three major broadcasting groups (NPO, RTL and SBS). Last November, the platform said it will introduce live OTT streams of the main channels.

Dutch viewers can also access live OTT streaming on the KPN Play platform and Knippr from T-Mobile.

Other research by Telecompaper shows that two-thirds (66%) of Dutch households now have TVs with internet access. This increases the likelihood of cord=cutting.

The figure rises to 73% for homes with children, while 62% of households without kids have a connected TV. The penetration of smart TVs has risen substantially in recent years, from just 30%, the annual surveys by Telecompaper’s Consumer Panel found. Growth slowed somewhat in the past year, to 5% from 12% in 2015.

Nevertheless, not all are using their smart TV to watch internet content. In Q4 2016, 36% of households said they watched internet content on the TV, up from 30% a year earlier. Around 14% connect a laptop to the TV to watch online content, up slightly from 12% in Q4 2015.

read more here:

http://www.broadbandtvnews.com/2017/02/03/66-of-dutch-homes-have-internet-access-on-tv/

Connected TV growth slows in the US

Growth in connected TV sales is slowing in the US, as penetration reaches into most households, according to research from The Diffusion Group (TDG).

The study shows that penetration of Internet-connected TVs among US broadband households has increased nearly 50% since 2013, from 50% to 74% at year-end 2016. And that means that sales are slowing.

Growth between 2015 and last year was only 4%, compared to 22% between 2013 and 2014, and another 15% between 2014 and 2015.

Besides saturation, broadband penetration has a hand in this. As TDG first noted in 2004, the diffusion of connected TVs would closely follow broadband uptake, and as broadband growth begins to slow, so too does the number of new connected-TV users.

Read more here:
http://www.rapidtvnews.com/2017012745933/connected-tv-growth-slows-in-the-us.html#axzz4Wxx9UMqE