Content publishers have shifted their content promotion strategies over the past year, largely due to the impact of the ongoing COVID-19 pandemic. This shift seems to be permanent as consumer behavior adapts to using streaming video technology more frequently. Additionally, the demand for video impressions from advertisers has consistently exceeded the available supply, leading to a continuous expansion as more consumers engage with streaming video technology.
One area that has seen significant growth is connected television (CTV), with a greater number of impressions now accessible programmatically. The pandemic has accelerated consumer behavior changes, resulting in substantial growth in CTV ad spending. For instance, in the US alone, CTV ad spend is projected to increase by 40.1% in 2021, reaching $11.36 billion, with almost 60% of CTV inventory expected to be purchased programmatically this year.
Transformation in Consumer Preferences and Behavior
The popularity of CTV-based content has surged among both older and younger generations, with CTV viewers being predominantly younger and more affluent. Millennials and Generation Z, in particular, are actively engaging with CTV content. The increased viewership has led to the emergence of more channels and new apps, presenting a favorable environment for video publishers and producers to explore opportunities in CTV.
The Impact of Changes in Data Privacy and Targeted Advertising
The phasing out of third-party cookies, initiated by Google’s decision to discontinue support for Chrome-based third-party cookies, poses a significant challenge for advertisers who rely on personalized content targeting. This, combined with the proliferation of data privacy regulations like the EU’s General Data Protection Regulation, has compelled advertisers to explore alternative advertising avenues, such as CTV-based ads, to gather actionable consumer insights while safeguarding user privacy.
Evolution of Content Ownership in CTV
The rise of CTV follows the trend of vlogging and other video content formats prevalent on platforms like YouTube. The transition to CTV has paved the way for a new wave of content creators, with platforms like Roku welcoming prominent content owners like Ryan’s World. Industry giants like Apple TV and Amazon Fire are also establishing their presence in the CTV market, offering diverse content options ranging from entertainment to lifestyle and gaming.
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Finally, it’s important to consider key metrics relevant to your organization’s goals, such as reach, cost, and win rate, when devising an SPO/DPO strategy to ensure a tailored and effective approach.
Potential Integration of SPO and DPO
As SPO and DPO strategies evolve and align more closely, there’s a growing opportunity for a collective approach within the industry. By establishing an infrastructure that simplifies connections between advertisers and publishers, a unified system could enhance collaboration and transaction efficiency, benefiting both creators and advertisers. This potential convergence of SPO and DPO signifies a shift towards a more synchronized ecosystem for achieving shared objectives.
In conclusion, as of 2021, over half of American adults regularly engage with content streamed through CTV platforms, spending an average of two hours per session across multiple devices. This expanding market presents significant opportunities for content creators and advertisers to reach a broad audience across various demographics. As the market continues to grow, embracing innovative strategies tailored to consumer preferences will be key for success.
Image Credit: august de richelieu; pexels; thank you!
