Connected TV: Targeting the Present for the Future

Tejinder Gill, General Manager - The Trade Desk, writes how CTV can address the common problems posed by linear TV in marketing and how free ad-supported streaming TV can revolutionise the industry

e4m by Tejinder Gill
Published: Mar 13, 2023 8:19 AM  | 5 min read
tech talk

Whether it’s globally or in India, markets have barely scratched the surface of Connected TV. One needs to only look at the FICCI report of last year, which showed that in 2022 CTV has increased to 10 million and is predicted to be around 40 million by 2025.

What is Connected TV?

A CTV is basically any TV you can connect to the internet through which you can stream content. And while the percentage of CTV advertising is still a very minuscule part of total TV advertising, the next four-five years will change the game drastically for connected TV and the primary reason for that is affordability.

Quality television sets are available for less than $200 now in India, internet penetration is going up every day as we speak, even as data cost is getting lower, and becoming faster thanks to 5G coming in and I think content availability with more and more content creators are coming across. So that'll lead to that growth.

So the whole medium is still very much on the chalkboard stage from the lenses of both advertisers and premium content platforms, with the evolution being driven by a massive shift in consumer habits. Because if you look at the consumer TV viewership, it has shifted to more streaming platforms, but the advertising spends are yet to catch up.

And I think personally of CTV as a Trojan horse ride that will drive further adoption of data-driven advertising strategies more broadly. If you look at traditional linear TV, it's not measurable to the T. It's got big screen, bigger ad units, big eyeball impact, but it's not been data-driven till now.

What are the problems addressed by Connected Television, from a marketers’ lens?

The first was the lack of audience targeting, as presented by linear TV. As a very simple example, think of going to a grocery store without a shopping list. What will happen? You will end up either buying things that are not needed or you buy something which you already have.

Similarly, if you think about CTV, instead of a shopping list, now think about your first-party or third-party data. When you buy a programmatic guarantee which is fixed CPMS, fixed impression, then you cannot actually apply the first party and the third party data. So you're targeting the same users again and again who have purchased your product. With platforms like The Trade Desk, you can apply a bird's eye view to audiences. So that's the biggest problem that we are solving for brands

The second was a lack of holistic frequency control. So let's say if you are a cereal brand and you want to target breakfast lovers. And we all know how consumer journeys are fragmented due to lack of visibility, maybe because they're watching different content on different apps on different devices.

What was happening on traditional TVs in the morning is that as they flip through content. Most of the consumers are either over-bombarded with the same ad or they were not shown enough ads to have a solid brand recall. What CTV does is it helps you not to waste your budget. So it shows the right ad at the right time to the right users and the right frequency which is the most important thing. And all of that is doable using a Connected TV versus a linear TV.

Thirdly, TV was not never measurable, but it was less measurable. Digital is fully measurable. Now, let's say you're a super luxury car advertiser, which means your target audience is very, very niche. You want to reach out to a very small handful of people. Now if you do again a similar direct buy or a programmatic guaranteed buy, regardless of the ad exposure and its performance, you can never apply data-driven targeting to it; you cannot get insights out of it.

This basically means that you are showing the same ad to almost everyone between 20 to 65 and while a 20-year-old might have watched your ad or gone to your site only out of curiosity for the new launch, your real owner of the luxury car could be the 65-year-old person.

The challenge and irony, in India especially, is with the programmatic guarantee prevailing so high that you pay the same price for a 20 year old and to the 65 year old audience. However, we feel that you need to pay the right price.

That means maybe pay less for the 20 year olds audience in that category? They could be an aspiring audience, but you do not need to pay the same premium price that you pay for a 65 year old. This is where the balancing comes in. You want to pay less for less relevant target audiences and maybe take that same budget and put it to the people who have a high propensity to buy.

The Future of Connected TV

FAST (Free ad supported streaming TV) is the new buzzword and these services are the future of programmatic CTV advertising. In India, and even for the rest of the globe, FAST services are catching up now because as an ecosystem and an industry, we have previously done a poor job of explaining the value exchange on the Internet and that value exchange is that we see targeted ads in exchange for free content. We never told this to our consumers and this is where transparency comes into play.

And now even players like Disney and Netflix are coming up with ad-supported models and it works very well because if there are more targeted ads in exchange for free content, they can definitely get more incremental reach, as first party data can be applied there.

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Markand Adhikari’s column on OTT content a hit on Twitter

Apart from being ranked 4 in India trends, it has also sparked a social media conversation about OTT content

By exchange4media Staff | Mar 24, 2023 11:12 AM   |   2 min read

Markand Adhikari

An opinion piece written by Markand Adhikari, Chairman and Managing Director of Sri Adhikari Brothers Group (SAB Group), on nudity and obscenity in OTT has been ruling the social media charts.  

The article was published by exchange4media on March 21st.

https://www.exchange4media.com/digital-news/class-has-no-class-126085.html

It was no. 4 in India trends on Thursday.

The article has also spurred a lot of discussion on OTT content on Twitter.

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FAST & Freemium: Why more & more advertisers are streaming towards Connected TV

These platforms, say experts, provide access to massive amounts of user data, enabling precise targeting and cost-effective advertising campaigns

By Shantanu David | Mar 24, 2023 8:27 AM   |   4 min read

connected TV

Even the most traditional advertisers are now dipping their toes into streaming, while more adventurous brands are already making a splash. And with the introduction of subscriptions with ads on streaming platforms like Netflix, Disney Plus, as well as Jio’s push towards freemium TV, the Connected Television (CTV) landscape is evolving with each new login and the following reams of data, and terms like FAST and Freemium are creating more buzz than an old cable TV’s antenna.

Swati Kardak, Group Account Manager, Media Planning & Buying, SoCheers, believes that with IPL in their kitty and now rolling out of freemium TV, Jio has already got the ball rolling for them. “This is a big boon for advertisers and brands as FAST (Free, ad-supported TV), will open up opportunities for advertisers to widen their addressable audience size. It will also work as a magnet to attract more audiences to the streaming platform and ensure a long-term client relationship.”

Meanwhile, “As subscription plans with ads are introduced, advertisers and brands have a unique opportunity to reach a large and engaged audience. These platforms provide access to massive amounts of user data, enabling precise targeting and cost-effective advertising campaigns,” says Keerthi R Kumar, Business Head-South, FoxyMoron.

According to the recently launched Gateway to Open Internet report, published by The Trade Desk and Kantar, 33% of consumers perceive ads on OTT/CTV as more premium than those on YouTube and other user-generated content platforms, making CTV/OTT a particularly attractive avenue for brands.

Additionally, 44% of consumers expect to significantly increase their usage of CTV/OTT in the next six months. The surge in popularity of Connected TVs also allows advertisers to reach a subset population of cord-cutters that they cannot reach on linear TV.

Tejinder Gill, General Manager, The Trade Desk, says that to capitalize on this fast-growing ad opportunity on OTT, brands will need to invest in data-driven advertising tools on platforms like The Trade Desk to help them to more effectively target and engage consumers across the multiple OTT platforms that consumers engage with today.

In Kardak’s opinion, Freemium will bring about a major cord-cutting change and a huge shift towards Freemium is most likely going to come from the traditional TV audience as they will be able to avail entertainment for free. “Therefore, brands and advertisers will have to be very mindful about picking the right content on FAST for their ad placement. In comparison, the audience on FAST is likely to be more massy, so, brands who have products or services catering to a larger audience should look at partnering with them,” she says.

The abundance of content and vast user base on platforms like Netflix and Disney Plus provide advertisers with the opportunity to target affluent audiences. With the introduction of ad-supported tiers, advertisers can leverage high-quality content to reach their desired target audience.

“AVOD and Freemium models offer precision targeting, real-time optimization, and measurement, leading to a shift in advertising budgets from traditional TV to OTT. As competition increases, advertisers must understand each platform's audience, engagement patterns, and results to make informed decisions that align with their business objectives,” says Kardak.

Vikas Mangla, Founder, Digital ROI, points out that by parsing through the consumer data available through viewership on these platforms, advertisers can develop new ad formats that engage viewers and do not disrupt their viewing experience. “Interactive ads, sponsored content, and native advertising are some of the ad formats that can help advertisers achieve this. For instance, Voot offers non-intrusive ad formats like sponsored content and integrated ads that blend seamlessly with the content,” he says.

Advertisers and publishers also need to analyze the collectible data to gain insights into their audience's behavior and preferences. This can help them optimize their ad campaigns, improve their targeting, and measure their ad campaign's effectiveness.

“For example, MX Player uses data analytics to track viewer behavior and preferences to create personalized recommendations for each viewer. Advertisers can also use data analytics to track ad performance and optimize their campaigns accordingly,” says Mangla, adding that publishers can leverage the popularity of streaming TV by creating content that resonates with their audience.

That being said, as Gill points out, “Another important consideration is frequency capping which is important to ensure consumers are not seeing the same ad multiple times across the different OTT platforms that they are engaging with. This is where programmatic media buying platforms offer value in helping brands preserve a positive ad experience.”

In conclusion, experts agree that the Indian market presents a significant opportunity for advertisers and publishers to reach a large and engaged audience base through FAST and Freemium. By adopting a data-driven approach, using new ad formats, programmatic advertising, data analytics, and content marketing, they can create more effective ad campaigns, engage viewers, and increase their revenue.

 



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Mark Zuckerberg announces new WhatsApp app for Windows

The app will enable group video calls with up to 8 people and audio calls with up to 32 people

By exchange4media Staff | Mar 23, 2023 3:25 PM   |   1 min read

whatsapp

Facebook CEO Mark Zuckerberg has announced a new WhatsApp app for Windows, which will enable group video calls with up to 8 people and audio calls with up to 32 people - all from your desktop.

Making the announceemnt on Facebook, he wrote, “Launching a new WhatsApp desktop app for Windows. Now you can make E2E encrypted video calls with up to 8 people and audio calls with up to 32 people.”

“The new Windows desktop app loads faster and is built with an interface familiar to WhatsApp and Windows users. You can host group video calls with up to 8 people and audio calls with up to 32 people. We’ll continue to increase these limits over time so you can always stay connected with friends, family and work colleagues.

Since introducing new multi-device capabilities, we’ve listened to feedback and made improvements including faster device linking and better syncing across devices, as well as new features such as link previews and stickers.

As we continue to increase the number of devices which support WhatsApp, we’ve just introduced a new WhatsApp beta experience for Android tablets. We’re also launching a new, faster app for Mac desktops that is currently in the early stages of beta,” he wrote further.

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MarTech can brilliantly answer the ROI question: Hareesh Tibrewala

The Joint CEO of Mirum India spoke to e4m Editor Naziya Alvi Rahman on a host of questions with respect to the India MarTech Report 2023 that will be unveiled at the e4m Pitch CMO Summit today

By Naziya Alvi Rahman | Mar 23, 2023 2:41 PM   |   1 min read

Mirum

Hareesh Tibrewala spoke to e4m on a host of issues related to MarTech while delving deep into the India MarTech Report. He started by addressing the roadblocks in the implementation of MarTech in the country.

He also explained the point about MarTech explorers in terms of the sectors, which is invested in this marketing technique.

Tibrewala further spoke about how martech was critical in the role of a marketer and how it could be extremely significant for calculating ROI.

The conversation also veered toward the importance of MarTech in the cookie-less world and the advent of Web3.

Watch the entire conversation here.

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Google opens up access to Bard

In a blogpost, Google said that Bard could provide tips or explain several posts

By exchange4media Staff | Mar 23, 2023 1:07 PM   |   1 min read

Bard

Google has said that it is opening up access to Bard, the ChatGPT competitor, as per media reports.

The tech major will be expanding the access to Bard in more countries and languages.

In a blogpost, Google said that Bard could provide tips or explain several posts.

Google unveiled Bard in February. Alphabet CEO Sundar Pichai announced the soft launch of the AI to "trusted testers". 

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MarTech no longer only about marketing, it needs to drive sales: Mirum India report

The survey for the report shows 88% of respondents expect to increase spending on MarTech over the next 3 years

By exchange4media Staff | Mar 23, 2023 12:43 PM   |   2 min read

Mirum

Mirum India, a Wunderman Thompson company, has put together a report on the emerging MarTech landscape in India.

The report captures how MarTech solutions are being utilized by brands to effectively communicate their brand messages to the right set of audiences at the right time.

The report highlights that while the global spend on MarTech solutions is around 25% of the total marketing budget, in India, majority organizations spend less than 15%, indicating significant potential for growth. With MarTech spending set to increase across company sizes and sectors, 88% of respondents expect to increase their MarTech spending over the next three years. The report also emphasizes the need for brands and organizations to work with growth partners as preferred by MarTech HEROES, focusing on ROI, and delivering value to the brands.

The report will be unveiled on March 24, 2023, at the e4m Pitch CMO Summit in Mumbai. The summit will see India's most reputed brands and top management coming under one roof to interact and share insights on their game-changing success stories.

Speaking on the report, Hareesh Tibrewala, Joint CEO – Mirum India, said, "The estimated size of the MarTech industry in India is expected to be between $35bn and $50bn by 2026, presenting a sizeable opportunity for businesses. Our latest report highlights how brands are using MarTech solutions to effectively deliver the right brand message to the right customer at the right time, creating fabulous customer experiences and increasing brand loyalty. It is interesting to note that marketers globally spend 25% of their budgets on MarTech solutions, and our report shows the emergence of MarTech EXPLORERS, who are keen to leverage the power of MarTech. This presents an exciting opportunity for businesses to grow and thrive in the ever-evolving digital landscape."

CVL Srinivas, Country Manager – WPP India said, "To succeed in the rapidly evolving tech and data driven world, organizations need good marketing automation tools and diverse skill sets. The report highlights the need for growth partners, preferred by MarTech HEROES, to ensure strong ROI for clients. It brings clarity to the ecosystem and presents an exciting opportunity for businesses to create fantastic customer experiences and increase brand loyalty. At WPP, we've invested heavily in building our tech and data practices, creating a comprehensive ecosystem where value is delivered at every touchpoint."

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Why contextual advertising is making a comeback

As part of e4m TechTalk, Dimpy Yadav, General Manager - Xaxis India, writes contextual advertising is re-emerging for delivering relevant & targeted messages to India’s audiences

By Dimpy Yadav | Mar 23, 2023 9:18 AM   |   4 min read

techtalk

For years, contextual advertising has taken a back seat in favour of hyper-personalised behavioural targeting. But with tightening regulations and deepening concerns around data privacy, contextual advertising is reasserting its place within India’s marketing ecosystem. And it’s about time too.

Contextual advertisement placement is a proven marketing strategy that dates back to the very origins of the modern industry. In today’s digitised world, this tactic involves showing ads that are directly relevant to the content that a user is viewing or even to the user themselves. They can align contextually with anything from a web page to a geographic location or even the weather.

So why is contextual advertising making a comeback in India in 2023? And how can the nation’s marketers and agencies rise to this new digital challenge?

The right context

It’s been seven years since the Indian government launched its digital India campaign and the nation’s digital economy has grown at a phenomenal rate – 2.4 times faster than the overall economy between 2014 and 2019.

Meanwhile, smartphones have become more affordable, internet infrastructure has expanded, and data has become significantly cheaper. Since the outbreak of COVID-19, the adoption of digital interactions has accelerated even further, with food deliveries, telemedicine, and online gaming surging in first-time usage.

For marketers, digital and mobile media have become more accessible and cost-effective mediums. This year, advertising spending on mobile is expected to comprise 78 per cent of India’s total digital media expenditure. According to eMarketer, mobile ad spending in India grew YoY by 35.9 per cent in 2021 and is forecasted to grow by 28.4 per cent in 2022

India’s digital explosion comes amid a tectonic shift away from the third-party data collection that marketers have relied on for years. Consumers have become more cautious about the data they share online while global regulations around data collection like the European Union’s General Data Protection Regulation (GDPR) have constrained brands’ unfettered access to personal data. In this climate, contextual advertising, which leverages the content of the environment instead of the personal data of its visitors, serves as a privacy-friendly alternative.

A loyal audience

One of the key criticisms of social media over recent years is the potential to miss or misuse key contextual information. Although social media gives brands access to massive audiences, campaigns can easily fall flat if they aren’t executed in just the right context. Even the best creative cannot drive engagement when it appears in an irrelevant or inappropriate environment.

But that dependence on its environment is also one of contextual advertising’s greatest strengths. When utilized in partnership with established publications, it capitalizes on the built-in trust and loyalty that those outlets already enjoy with their audiences. When a receptive audience is combined with the modern capabilities of global scale, digital precision, and algorithmic efficiency, the results can be powerful.

Trust in context

Improvements in targeting capabilities and data analysis have also made it possible for advertisers to target audiences through keywords and topics as well as demographics and interests. Marketers can meanwhile be selective about the types of content they want their ads to run alongside, reserving their investments for audiences that are more likely to take an interest in their products and, therefore, more likely to engage with them. For these reasons, they can feel confident that their content will be well received and their investments will be profitable.

Still, marketing based on context may be a difficult transition for industry leaders who are more familiar and comfortable with behavioural targeting. But it’s hard to argue that the shift towards a contextual mindset will be anything short of necessary and more than likely fruitful. Recent research by Integral Ad Science (IAS) revealed that Indian consumers are more likely to positively receive and remember contextually relevant ads.

Last but not least, contextual advertising will aid marketers in the desired outcome from their campaign. According to a study conducted by IAS and personal computer manufacturer HP, purchase intent was 14 per cent higher among consumers who viewed the in-context ad. In addition, consumers reported a 5 per cent increase in positivity toward the HP brand after seeing an in-context ad

As third-party personal data is becoming less accessible, contextual advertising is growing more sophisticated, giving marketers the power to meet receptive audiences with relevant content. That’s a fundamentally sound path to success that benefits both brands and consumers alike.

Most significantly of all, it has the potential to transform digital media investments into real-world business outcomes. Although the value of premium publishing has always existed, marketers are now able to prove its success with clarity and maximum return on expenditure.

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