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  1. Home
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  3. | CTV & Video
  4. | Opinion: CTV Inventory – A Critical Buy for the Holiday Season
November 23, 2020 by IAS Team

Opinion: CTV Inventory – A Critical Buy for the Holiday Season

CTV & Video
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Opinion: CTV Inventory – A Critical Buy for the Holiday Season

SVP Integral Ad Science APAC Laura Quigley, talks about how the CTV Platform provides a win-win option for consumers and marketers

“The adoption of streaming and Connected TV (CTV) during the lockdown has significantly accelerated. In a September 2020 study, IAS found that Connected TV (CTV) has become mainstream in Indonesia with 7 in 10 consumers having access to it and a whopping 92% of consumers have increased their consumption of streaming content during the COVID-19 pandemic and the story is not very different in other markets we ran the research in.

Consumer eyeballs are followed by marketers ad spends and typically ad fraudsters go where money flows. OTT/CTV ad spends were up 60% in early August 2020 vs. early April 2020 according to a recent SpotX report indicating clearly that advertisers are eager to optimise their ad spends and advertise where the eyeballs are.

Before I begin to dive deep into the benefits of campaigns on CTV it’ll be worthwhile to draw a difference between streaming/ OTT and CTV.

“Over the top” (OTT) means the video content is broadcast via the Internet. This video content is accessible on devices such as a laptop, mobile device, tablet, or connected TV.

“Connected TV” (CTV) covers all devices that offer multimedia support and can connect to the Internet such as video game consoles, Smart TVs, or Blu-ray disc players.

APAC will see the fastest growth in CTV spend

Recently PubMatic commissioned a global study by Forrester which uncovered how different programmatic video capabilities impact publisher monetization. The results painted a very exciting future for CTV in APAC. The report suggests that whilst the CTV opportunity is still nascent in APAC, publishers here are predicting significant ad spend growth in the format over the next 12 months – potentially signaling the second wave of video streaming growth.

The study found that publishers in APAC were predicting stronger growth in CTV spend than their EMEA and US counterparts – with publishers predicting 34% ad spend growth in the format over the next 12 months, vs. 21% for EMEA and 20% for the US. Within APAC, publishers across the region are expecting to see strong ad spend growth in the format – with ANZ seeing the strongest growth 42% vs. 33% for Japan, 32% for SEA, and 30% for India.

Burgeoning CTV Viewership fuels more Opportunities for Advertisers during the Holiday Season

According to recent data from The Trade Desk’s survey with YouGov, the number of cord-cutters is growing as a result of a stay at home mandate. 64% of U.S. adults have never had cable, have already cut, or are planning to cut their cable subscriptions. With limits on consumers’ willingness to pay for streaming subscriptions, lower-cost and free advertiser-supported offerings are becoming more popular.

According to Integral Ad Science (IAS) global streaming wars report, 84% of Indonesia, and 76% of Australia consumers are willing to see ads in exchange for free streaming content. IAS report suggests 89% of Indonesian and 57% of Australian consumers surveyed, have added at least one ad-supported streaming service to their viewing habits since the onset of the pandemic.

CTV platform provides a win-win option for consumers and marketers. Consumers want options, flexibility, prefer on-demand, ad-supported entertainment with fewer, relevant ads. As they pull back on monthly subscriptions due to economic uncertainty, free, ad-supported services will continue to increase in viewership, providing even more supply for advertisers.

These audiences will be essential for brands looking to drive sales and growth following the economic recovery from the pandemic. Advertisers have an opportunity to stream their commercials alongside premium content.

According to TTD  platform data, the daily average available Connected TV inventory rose 54% YoY in April 2020. CTV represents a new paradigm for advertisers and their planning cycles thereby addressing the need for speed, agility, and maximum flexibility with their budgets, especially during the upcoming holiday buying season.

Brands that embrace evolving and upcoming mediums will be in a better position to win the hearts and minds of consumers.

Protect CTV Campaigns from Ad Fraud

The holiday buying season presents a huge potential to savvy marketers to get in front of the consumers in the region who traditionally make purchases of big-ticket items such as furniture, automotive, and electronics in preparation for the festive season. The advertising campaigns run full-swing to take advantage of the Harbolnas, Singles day, Black-Friday promotions, and more across the region. We know where the money goes, fraud follows and the same holds true for CTV.

CTV, as a medium, has the potential to represent the best of both TV and digital. It has the best of both worlds- the reach and attention of linear advertising, with data and targeting of digital. With eMarketer estimating that almost 60% of CTV inventory will be bought programmatically by 2021, the risk of fraud will continue to rise.

As the Connected TV/OTT market grows and gets increasingly traded programmatically, the risk of ad fraud will continue to rise. Higher CPMs, a decentralized app ecosystem, a lack of widely-adopted industry standards, and other factors have turned the OTT/CTV landscape into a hotbed for ad fraud.

CTV buyers must start measuring CTV inventory and work with a third-party verification partner to make sure the CTV ads are seen by real people and have the opportunity to make an impact this holiday season.”

This article first appeared in Marketing In Asia

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