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Connected TV ads: Higher completion rates and increased transparency

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By Elisabeth Kindig

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The surge in demand for OTT and mobile video consumption combined with the erosion of Pay TV subscribers has created an opportunistic moment for video service providers and advertisers. Eyeballs have migrated to OTT and mobile with enough demand to rival television, creating an open window of time to reach these valuable audiences. Key insights from OTT and mobile data help to inform advertisements for a better ROI than what television can offer. In fact, OTT ads are reporting a 97% completion rate and 100% viewability1 by combining the high engagement found on television with similar audience targeting capabilities as mobile devices.

For advertisers, connected TVs are the best of both worlds. On one hand, connected TVs have the same targeting capabilities and dynamic ad insertion as that on mobile, but with higher viewability and completion rates. Viewability or viewing experience on mobile falters when display resolution is not optimized to specific screen size with many ads being displayed below the fold.

Due to the benefits of connected TV advertising, the ad-serving company AppNexus saw a 748% year-over-year rise in connected TV ad sales2. Roku may be the year’s biggest success story with an ad-supported strategy that saw 6.7 billion hours streamed with 43% ad supported. In fact, in Q2 2018 Roku’s ad-driven platform grew 96% to $90.3 million in the same year QoQ3.

Key Benefits to Dynamic Ad Insertion:

Dynamic ad insertion (DAI) offers consistent quality with a single, uninterrupted stream that contains both program and commercial content. Today’s content comes from an array of broadcasters, niche content companies, and OTT platforms. Whether the content comes from NBC, CBS, Sky Media, Hulu, or Roku, there are two key issues that drive operational decisions: a high-quality experience and earning revenue. DAI helps both of these operational priorities.

  • Advertisements with TV-like Quality: Traditional video advertising uses overlaying concepts or player switching technologies, which result in creating disruption in viewing experiences while switching between content and the ad. With DAI, ads transition seamlessly because the ads are inserted at the server level, which delivers a continuous stream for enhanced TV-like quality.
  • Video Centric: Mobile has become the primary method for viewing video. 75% of global video is viewed on mobile. Nearly 2.4 billion people will watch video content in 2018, which is nearly double from 20144. Ad insertion can overcome ad blockers on all platforms. DAI is favorable on mobile compared to traditional advertising, which compromises the viewing experience and can trigger ad-blocking software due to content and advertising coming from two different sources. Due to seamless delivery for DAI, ad-blocking software is less likely to be triggered
  • Increase Revenue with Personalization: Traditional linear TV models do not have targeting capabilities, rather they use broad methods based on programming to guess demographics, or they use geographies. There is no competitive advantage to traditional linear models as advertisers are not confident they are reaching the correct audience. DAI is necessary to remain competitive and to attract advertisers by targeting on an individual level. DAI also provides advertisers with transparent reporting capabilities on ad metrics.
  • Competing with Subscription Video on Demand: OTT providers who are ad-supported face competition from subscription-based competitors. SVOD requires massive investments in original content and marketing costs to secure the monthly fees. Advertising is appealing for OTT content providers because it is easier to attract audiences to free content. Server-Side Ad Insertion (SSAI) is one of the main benefits to DAI by inserting targeted advertising into individual video delivery paths while it can still provide transparent metrics when used together with client SDK for Ad Tracking.

The Intertrust ExpressPlay Ads™ suite represents a single service that provides content distributors, network operators, and broadcasters all of their media monetization requirements in a highly cost-effective and efficient way.

1 https://www.forbes.com/sites/alanwolk/2017/11/16/ad-supported-ott-isnt-a-fad-its-the-future/#a4adab23adfa
2 https://www.fiercevideo.com/video/appnexus-tracking-748-explosion-connected-tv-ad-sales
3 http://www.nscreenmedia.com/roku-q2-2018-results-roku-channel-key/
4 https://www.statista.com/topics/1311/mobile-broadband-statistics-and-facts/

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