Why CTV advertising should be on media plans

Connected TV (CTV) advertising, which combines the sight, sound and motion of TV advertising with the targeting of digital, has to be seriously considered as part of brands’ media plans, according to the just-released WARC Guide to Connected TV.

Why it matters

Most TV viewers are now spending substantial amounts of time watching TV on a variety of streaming platforms. This means that marketers are increasingly unlikely to reach targets using just linear TV – brands that use CTV as well can take advantage of enhanced targeting and minimize waste.

Takeaways

• In the US, CTV spending is set to reach $21bn by the end of 2022, according to research from the IAB; that figure is just short of the amount of 2022 spending expected in other forms of online video (excluding social). 
• As viewership shifts toward CTV, some brands are pursuing a “video-on-demand first” strategy. 
• Ad inventory in CTV comes from a variety of sources, including streaming services and Smart TV companies.
• CTV advertising runs primarily on first-party data – streaming platforms inherently require a log-in, as does opting in to a Smart TV or device, as does having a cable or satellite subscription. Because of first-party data, CTV also sidesteps many privacy concerns.
• CTV’s internet connectivity makes it possible for advertising to be transactional; brands can take advantage of tactics such as using a QR code to exploit second-screening behavior. 

The big idea

Brands, agencies and media owners will need to become fluent in CTV as viewing habits shift and enhanced targeting in TV becomes easier to achieve. 

Read more in The WARC Guide to Connected TV

Empathy when it’s convenient

Ad industry leaders’ fine words on empathy aren’t cutting it with staff, as new research from Australia indicates an “empathy gap” between those at the top and middle managers/junior staff.

Why it matters

Workplace wellbeing shot to prominence during the pandemic and lockdowns, as many people struggled to cope with fear, grief, isolation and burnout. Issues around diversity and inclusion have also risen up the business agenda in response to campaigns like #Black Lives Matter. But the findings of this study from the Mentally Healthy Change Group into empathy within the media, marketing and creative industry, based on a survey of more than 500 people, suggest that companies’ actions may often have been more about ticking boxes than genuinely addressing the issues. Creating a sense of disillusionment among staff is hardly the way to retain them at a time when it’s difficult to recruit people in the first place.

Study findings

• The great majority of people surveyed (86%) said empathy at work was personally important to them, but only 38% believed their employer valued empathy.
• The main barriers to empathetic workplaces were time pressures (80%), a focus on client satisfaction over employee satisfaction (68%) and lack of understanding of the role of empathy and business metrics (66%)
• Seven in ten (70%) respondents in leadership roles felt they worked in an inclusive workplace compared to only 55% of respondents on middle or junior levels.
• Half (51%) of respondents were considering leaving in the next 12 months, rising to 61% among more junior staff.

The big idea 

Empathy in the workplace is seen to bring real benefits including better collaboration between teams, improvement in job satisfaction and a more inclusive work culture.

Key quote 

“It appears respondents are not always seeing empathetic intentions modeled because often 'the business comes first'. Indeed, the stronger the belief that a business puts profit first, the stronger the likelihood for people in the company to want to leave” – Andy Wright, co-chair of the Mentally Healthy Change Group and founder of Never Not Creative.

Sourced from Ad News [Image: Getty]

The Disney+ ad offer in under a minute

Disney+, the new titan on the streaming block has explained what advertising will actually look like on the platform.

Why it matters

Home to Marvel, Star Wars, and most of your childhood viewing, the prospect of advertising on Disney+ is tantalising, especially as the service continued to post stable subscriber growth (over 6% in the Q2) in what has been a difficult market. Advertising is expected to open it out to a vast new audience of viewers.

Bottom line seems to be that Disney’s highly controlled ad product will prioritise quality over quantity.

What they’re going to do

• Show four minutes of ads per hour (versus around 18 to 23 on traditional TV)
• Offer CPMs of around $50-$60 in the US, per ad buyers speaking to the Wall Street Journal.

What they’re not going to do

• Show ads to kids (if they have their own profile on their parent’s account)
• Show ads for alcohol
• Show political ads
• Show ads for rival studios or streamers (obviously).

Across the industry

The reincorporation of ads is similar to the eventual strategy of a lot of news brands: ads and subscribers can mix, and not only that, ads shown to signed-in, verified users are far more profitable.

Nevertheless, Netflix’s upcoming ad offer has been read as the company on the ropes. Its CEO has his past anti-ads hubris to thank for that. So if you take one thing from this, it’s to never say never.

But from an advertising perspective, this is a way into previously unavailable premium media. It will also be a fascinating snapshot into the kinds of effect that ads on streaming platforms can offer.

Sourced from WSJ, Variety, AdExchanger