Next-gen opportunity: Why CTV is a must-have for media planners in 2024 media landscape

In today’s digital landscape, the influence of Connected TV (CTV) cannot be overstated. As traditional television viewership evolves and consumers increasingly turn to streaming platforms, the significance of CTV is clear. To disregard its inimitable power is to ignore a pivotal force shaping the future of media consumption.

In this two-part series, Adgully explores the inimitable advantages offered by CTV, and the kind of strategies media planners should prioritize to leverage the opportunities presented by the surge in CTV usage.

Gen Z and millennials

CTV indeed presents a transformative opportunity for brands to engage with audiences in India. And what should Media planners do? They need to delve into the nuances of CTV advertising strategies, and its profound impact on media planning and campaign execution.

Media planners must recognise the importance of incorporating TV into their campaign strategies, says Prabhvir Sahmey, Senior Director, Samsung Ads, India. According to him, media planners face a significant learning curve in understanding the unique characteristics of TV compared to other mediums they typically plan for, especially digital media platforms. Engagement can be measured using industry standard and acceptable practices of Lift Studies and cross device conversion tracking, says Sahmey.

CTV has cemented its place among GenZ and millennials as the primary screen for content consumption at home, points out Nikhil Kumar, Chief Growth Officer, Mediasmart, an Affle company. He reckons that these audience groups prefer the on-demand viewing flexibility offered by CTV as against the fixed schedule programming on linear television. According to him, advertisers have access to a wealth of high-quality exclusive content that can be leveraged to create compelling ad campaigns.

He stresses the importance of recognizing that GenZ and millennials are driven by authentic brand connections. To effectively engage with this target audience, he adds, media planners should focus on both the storytelling and creative aspect as well as harness the power of data-driven technology and insights to drive brand goals - whether it is creating awareness, recall, or driving purchase.

“Today, consumer journeys are no longer limited to a single device. Any advertising effort, therefore, must speak to the same consumer who exists across devices and re-engage them. Technologies on CTV such as Mediasmart’s Household Sync present advertisers with the right tools to target users within a single household with personalized ads, measure results, and even drive them to the nearest store or take actions on websites/ apps. By targeting users on CTV and re-engaging them on mobile, advertisers can drive the possible experience across all screens and devices. Media planners can adopt a holistic, multi-channel approach to maximize reach and engagement by integrating CTV campaigns across multiple screens like mobile and DOOH and create a strong brand impact,” says Nikhil Kumar.

Experts are certain about the immense potential India as a market offers.

India is one of the fastest-growing advertising markets in the world, with increasing video consumption, diverse content, and over 65% of its population below the age of 35, says Siddharth Dabhade, Managing Director - South Asia, MiQ, a global marketing intelligence firm. India is projected to have about 30-35 million connected TV households by the end of 2023. This number is projected to grow by 4x to 80 million households by the end of 2025.

“Media planners must gain a thorough understanding of how GenZ and Millennials consume content on CTV platforms. This involves delving into their preferred genres, viewing habits, peak times for engagement, and device usage patterns,” he adds.

• GenZ spends a lot of time on OTT platforms and social media handles, so marketers need to collaborate with OTT platforms, content creators, and brands to access premium inventory, exclusive content, and advanced targeting capabilities.
• Marketers need to utilise data analytics and audience insights to inform media planning decisions. This includes demographic data, viewing patterns, and ad performance metrics to optimise targeting and messaging.
• GenZ prefers customised ad experiences, so marketers need to plan content for individual viewers based on their preferences, behaviours, and demographics.
• 42% of respondents prioritise price over content when choosing streaming platforms, revealing a crucial factor for advertisers to consider.
• Second-screening could be the perfect opportunity for mobile retargeting and competitive conquest.
• Advertisers need to integrate CTV advertising with other digital channels and traditional media to create cohesive and complementary campaigns. This ensures a broader reach and consistent messaging across platforms.
• Marketers need to develop innovative and interactive ad formats specifically designed for CTV platforms. This could include interactive overlays, shoppable ads, and immersive experiences to captivate viewers and drive engagement.

“We’ve seen that 81% of advertisers in China and India intend to increase their spends on ATV. From this, we may draw a parallel to the higher level of second-screen activity in those regions. This suggests the advertisers that get it right would be the ones that choose marketing approaches that allow them to reach both of those screens. In Western markets, where viewing tends to be more passive, a reach- and frequency-focused approach across fragmented viewing options may prove more effective,” says Dabhade.

Media planners should focus on personalised targeting as GenZ and Millennials are diverse groups with distinct interests, says Krishna Menon, Chief Operating Officer, QYOU Media India.

“Extending beyond basic demographics and harnessing data to pinpoint specific cohorts within these generations, considering their viewing habits, content preferences, and online behaviours, will prove pivotal. Given the notably short attention spans of GenZ and Millennials, prioritize concise and impactful ad formats like short-form videos or interactive elements. Authentic and relatable storytelling resonates strongly with these demographics; so leverage data insights to guide creative decisions, ensuring your ads strike a chord with the intended audience,” Menon adds.

The CTV advantage

Advertisers can leverage the unique advantages offered by CTV, such as addressable media and immersive ad experiences, compared to traditional TV advertising.

CTV enables advertisers to deliver highly targeted ads to specific households or individual viewers based on data such as demographics, interests, and behaviours. This level of precision ensures that ads are relevant and personalised, increasing the likelihood of engagement and conversion. Unlike traditional TV, CTV allows for more interactive and engaging ad experiences.

CTV advertising provides access to real-time analytics and performance metrics, allowing advertisers to track key metrics such as ad impressions, completion rates, and conversions. These insights enable advertisers to optimize their campaigns in real-time, ensuring maximum ROI and effectiveness. CTV advertising also enables advertisers to reach audiences across multiple devices. This cross-device targeting ensures broader reach and allows advertisers to engage with viewers across various touchpoints throughout their consumer journey.

Brands have typically used advertising on television for awareness, recall and purchase, but the traditional advertising on television has lacked precision targeting, points out Nikhil Kumar. He further reckons that it was also not tailored to the viewer’s interests nor was there a way to measure the effectiveness of these campaigns.

With CTV, Nikhil Kumar adds, brands can do so much more to reach their target audience effectively and go beyond traditional targeting. According to him, the prime advantages of CTV lies in the programmatic ability to target and reach specific audience groups, and further segment them based on screen size, location, and interests.

“The programmatic technology on CTV also makes real-time optimisation possible to improve efficiency. Also, what makes CTV advertising immersive is the variety of creative formats that are catered to screen sizes. Advertisers can use formats such as in-stream ads where an ad is linked to the content being watched, or use interactive ads that prompt viewers to actively engage with the ad content. Another interactive format designed to improve a user’s engagement is through QR code feature that allows viewers to quickly scan and access the app store for increased conversion opportunities. Using a combination of these techniques, brands can craft highly targeted ads and ultimately drive re-directions on mobile app or to the nearest store to boost purchase,” states Nikhil Kumar.

Advertisers have a strong advantage of engaging with their audiences more effectively via interactive ad formats offered by CTV, and the best part is that these ads can also be integrated seamlessly with other marketing channels like social media and online advertising, creating a more cohesive brand experience, says Krishna Menon. According to him, these advanced ad formats bring a fresh approach for the brands and also increase engagement and recall value compared to passive TV commercials.

Multiple innovations in content and ad delivery have emerged in recent times with the affordability of smart TV devices and internet connectivity, says Siddharth Dabhade. CTV gives advertisers the best of the consumer ad experience and immersion with the TV screen while offering the addressable media and content capability we have become accustomed to in the rest of the digital ecosystem.

According to Dabhade:

• CTV provides advertisers with the opportunity to create interactive and immersive ad experiences that engage viewers on a deeper level. Ad formats such as interactive overlays, shoppable ads, and augmented reality experiences can enhance brand storytelling and drive higher levels of engagement and interaction.
• CTV enables advertisers to dynamically optimise ad creatives in real-time based on viewer data and behaviour. By leveraging DCO technology, advertisers can deliver personalised ad experiences tailored to individual viewers, increasing relevance and effectiveness.
• CTV allows advertisers to seamlessly integrate their ad campaigns across multiple screens and devices, including smart TVs, streaming devices, mobile devices, and desktop computers. This cross-screen approach ensures consistent messaging and maximises reach and frequency across various touchpoints.
• CTV provides advertisers with valuable audience insights and data analytics capabilities, allowing them to gain a deeper understanding of viewer behaviour, preferences, and interests. By leveraging these insights, advertisers can refine their targeting strategies, optimise ad creatives, and tailor their messaging to resonate with their target audience more effectively.
• Advertisers can leverage advanced targeting options for their connected TV advertising campaigns by segmenting audiences based on age and gender criteria, activity across CTV platforms, interaction with a product or an ad, interests, and used devices.
• Contextual targeting on the CTV is a game-changer that brings targeting opportunities to the next level, as the ads are served based on the streaming content without applying demographic, location, or other types of data.

Prabhvir Sahmey says that at Samsung, they have been able to bring unique insights from the TV advertising ecosystem. “Being a hardware player in this value chain, we are able to provide relevant TV signals like what content/ programme people are watching to how long they are engaged with his content. And, if they are running traditional TV advertising - with the power of ACR (Automatic Content Recognition) - we are also able to help them identify if Samsung TVs across India did see their brand’s ad. Secondly, a big shift of how CTV works is on “demand”, which means your ads only run when the TVs are on; and a specific application is opened on the device. This changes the classical TV buying analogy. While this is true for VOD, it is not the same for live events. As viewers evolve, we'll see changes in how these ads play and execute on the TV. Interactive and shoppable Ads seem to be on the horizon. Adding more interesting metrics to track for the advertiser,” says Sahmey.

(Tomorrow – Part 2 of this report will uncover the advancements in CTV analytics and measurement tools and potential challenges such as fragmentation.)