In this post, we’ll explore some of the current factors behind OTT/CTV advertising growth, take a look at two key reasons why marketers should care, and show how Simpli.fi can help you make the most of this unique opportunity.
What’s Driving the OTT/CTV Boom?
The coronavirus outbreak has catapulted CTV into the spotlight.
Reaching Consumers During the Pandemic
With so many people having been homebound due to shelter in place orders and social distancing efforts, the amount of time consumers have spent viewing streaming media has skyrocketed. Nielsen predicted in March that COVID-19 could lead to a 60% increase in the amount of video content watched in the U.S. In fact, Nielsen found that the amount of time spent streaming content during the week of March 16 was more than double that of the same week last year. Even now, with economic reopening efforts slowly progressing, recent surges in COVID-19 suggest that time spent at home will not be significantly decreasing in the near future.
Quite simply, in these circumstances OTT/CTV advertising allows marketers to reach consumers where they continue to be found—at home, viewing media on various OTT/CTV devices.
Dollars have always followed attention. We have seen [OTT/CTV ad] dollars slowly move, and now rapidly accelerate. This is a moment in time where dollars are moving commensurate with where attention is going.
(David Cohen, IAB President)
Follow the Ad Spend
A report from Pixalate released on June 1 found that OTT/CTV ad spend rose 40% during April and May. This was a significant bounce back from a 14% dip in March, indicating that advertisers quickly responded to the increase in streaming media consumption brought on by the pandemic.
Said Jalal Nasir, CEO of Pixalate: “After pulling back spending in March, OTT/CTV advertisers appear to be reinvesting in the ecosystem as consumers continue to stay home. All major device types saw ad spend gains in April and May, a promising sign that the OTT/CTV ad landscape is quickly regaining its footing.”
With savvy digital advertisers engaged in the 2020 race, OTT/CTV advertising becomes a key tool as the heated political races head into the fall.
(Frost Prioleau, CEO of Simpli.fi)
Poised to Play Important Role in 2020 Election
Our own CEO Frost Prioleau recently weighed in on the prominent role OTT/CTV advertising will likely play in the upcoming presidential election. The reasoning is compelling. With OTT/CTV ads, political marketers can target audiences with their TV budgets as precisely as they previously did with their digital budgets. This includes addressable advertising that targets individual households, based on past political contributions, party affiliations, voting records, household income, purchase history, and a wide range of demographic variables.
OTT/CTV advertising is no more of a trend than serving display ads on laptops or mobile ads on smartphones. It is here to stay, and represents one of the pillars of the digital advertising industry going forward.
The Best of Both Worlds
There are many benefits to OTT/CTV audience targeting that make it an essential part of any digital advertising strategy. However, let’s take a quick look at two of the fundamental reasons why marketers should be fully engaging with OTT/CTV advertising.
Combine the Impact of TV Ads with the Precision of Digital
While no one can deny the visual and emotional impact of a traditional TV ad, linear TV has significant limitations when it comes to audience targeting. With OTT/CTV advertising, we can now retain the benefits of the TV ad while adding the audience targeting capabilities available with digital. In practice, this means advertisers can reach viewers with the same compelling brand messaging, while targeting consumer audiences with vastly more precision and granularity. There’s no better way for marketers to maximize ROI while minimizing wasted impressions.
Reach Consumers Where They’re At
As we discussed above, the COVID-19 pandemic has caused a spike in people staying at home which has led to a corresponding increase in the consumption of streaming media. However, since its inception OTT/CTV advertising has always been one of the most effective and impactful channels for reaching consumers at home with video ads. It was and continues to be the premier way to get in front of consumer eyeballs on both the large and small screens and across devices. The numbers more than bear this out.
Get the Most Out of OTT/CTV Advertising with Simpli.fi
At Simpli.fi, our goal is to help advertisers leverage OTT/CTV advertising to the utmost. To that end, we offer a variety of different targeting methods to ensure that our advertisers are reaching the right audience while minimizing wasted impressions and maximizing ROI.
Addressable OTT/CTV Targeting
Utilizing Simpli.fi’s industry-leading addressable targeting technology, this method represents granularity in audience targeting down to the individual household-level. Addressable OTT/CTV targeting gives advertisers an effective way to reach consumers in over 126 million households across their OTT/CTV devices.
Simpli.fi achieves significantly more precision by using GPS and plat line data rather than an IP-based approach to target physical addresses so that only the right households and devices get targeted with OTT/CTV ads. Our addressable household-level targeting has set a new standard for how granular a location-based marketing campaign can get.
This is an ideal way to leverage your own first-party data from CRMs and other sources. And if you don’t have access to your own address data, Simpli.fi can curate lists for you using our Addressable Audience Curation (AAC) tool to build and activate a custom household-level audience in real-time using location data (such as postal codes, city/metro, congressional districts, etc.) and more than 500 offline data variables (including demographic, economic, and political variables) for inclusion or exclusion via full Boolean capabilities.
Behavioral OTT/CTV Targeting
Simpli.fi’s Behavioral targeting method gives advertisers the ability to bring the precision of digital targeting to OTT/CTV by targeting users based on keywords, context, and other online behaviors. Behavioral targeting bridges the gap between OTT/CTV and other online behaviors, reaching across devices using our cross-device matching capabilities.
Demographic OTT/CTV Targeting
Take advantage of numerous combinations of demographic variables to find and target the right audience, at scale, with the highest degree of precision in the industry. And with over 500 categories of household demographic, political, and economic variables to choose from, advertisers can target more than 126 million households.
Now more than ever, it is essential for marketers to make sure their advertising is as effective as possible. This means reaching the right person at the right time with a relevant message and minimizing wasted impressions. Simpli.fi gives marketers the ability to target users based on individual, relevant data elements and then optimize the campaign throughout its duration to maximize performance. Once a campaign is activated, Simpli.fi can then make midflight adjustments to improve performance and reach. The end result is maximum performance and minimum wasted impressions. For advertisers, this translates to increased cost-savings and a significantly better ROI for their campaigns.
As for attributing an ROI to your OTT/CTV campaigns, we are here to help. In addition to measuring offline conversions, Simpli.fi can also measure online conversions from OTT/CTV ads shown on televisions and other streaming devices. This lets advertisers attribute an ROI to their OTT/CTV campaigns by tracking online conversions, such as visiting an advertiser’s website, completing a form-fill, adding a product to a shopping cart, purchasing a product, and more.
If you’re not already partnering with Simpli.fi to get the most out of OTT/CTV advertising, reach out to us at firstname.lastname@example.org to get started.