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How connected TV is changing Video advertising

Who watches TV, right?

A lot of my friends and colleagues have a TV but very few actually watch the TV part of it. We’re all streaming now.

With viewer rates dropping globally, the last decade hasn’t been kind on TV.

However, as a device, it’s still the centrepiece for at-home entertainment. (I mean what’s all the furniture in the room pointed at?)

Our commitment to TV makes it one of the most attractive devices for advertising.

As our habits change, so too, do the business models that produce the streaming content we love to binge.

Just as Netflix is personalising which titles each user sees on the screen, Hulu and others, are personalising which ads users see on TV.

Though many of us now subscribe to ad-free streaming services, the future of advertising on TV is programmatic.

People are paying to watch ads on TV. ?

It may sound crazy, but 70% of Hulu’s 82 million viewers subscribe to its ad-supported model where an unskippable ad is often shown before and after a 30-minute show.

According to emarketer, ad spend across connected TV in the US (including Hulu, Roku and YouTube) are expected to grow from 7 billion in 2019 to 10,8 billion in 2021.

TV advertising is fickle and programmatic across connected TV is here to fix that.

With the possibility to target ads to specific households, advertisers are more interested in measuring how many people view their ads from start to finish.

report published by Extreme Reach shows that Video Completion Rates (VCR) are on the rise, while Click-Through Rates (CTR) are declining.

This means that as VCR for 15-30 second video ads have gone up by 89%, people aren’t skipping any ads but they’re not taking immediate action either.

We can only hope that the ads are more relevant this time around.

I’m not sure if it says anything about the quality of the ads because platforms like Hulu and YouTube often don’t give you the possibility to skip them.

The option to skip would tell us something about which ads are favoured – those ads that we’ll watch even when we’re itching to get back to our show.

Ads such as these clever ones from Heineken and Pedigree (my daughter squeals in laughter at this one), to mention a few personal favourites.

As advertisers, we can make the most of the viewers’ attention by giving them a memorable experience.