Is it primetime for Connected TV?

Rachel Lyall, Director of Marketing, EMEA and APAC, Mediaocean, takes a look at how connected TV services are forcing a rethink in the performance marketing world, especially now that things are up in the air with cookies

In 2024, Connected TV (CTV) platforms are poised to revolutionise advertising strategies, with a significant 62% of marketers predicting it will dominate media trends. This shift is already evident in the entertainment sector, where streaming giants like Netflix introduced ad breaks in popular shows such as Bridgerton.

Even as CTV continues to gain momentum, the advertising landscape’s transformation is set to be driven further by technological and regulatory changes. These innovations present both challenges and opportunities for brands aiming to engage with increasingly fragmented audiences.

So, how is CTV reshaping the future of advertising? Let’s investigate some emerging practices and their potential impact on the industry.

WHERE PERSONALISATION LEADS, AD SPEND WILL FOLLOW

Marketers are beginning to recognise the potential of CTV and streaming from both an advertising and product perspective and it’s no surprise to see investments surge, with 56% of advertisers looking to increase their CTV spend.

Streaming giants like Netflix, Prime Video, and Disney+ are leading the charge by leveraging extensive viewer data and advanced algorithms to segment audiences beyond basic demographics. By analysing viewing history, search behaviour, and time of viewing, these platforms are delivering highly relevant and personalised ads. For example, Netflix gained a deeper understanding of their customers’ needs and preferences through its first-party data, allowing the streaming giant to provide better customer experiences.

The ability to personalise your messages will be key: 71% of consumers expect tailored interactions, and 76% get frustrated when this doesn’t happen. Therefore, ensuring ads do not disrupt the user experience or the flow of the show is paramount for success in the CTV advertising landscape.

PERSONALISATION STARTS WITH THE CREATIVE

In the rapidly evolving world of CTV advertising, the persistent ‘creative media’ gap remains a significant challenge for entertainment marketers. This gap, driven by an overemphasis on media activation at the expense of creative elements, hampers the effectiveness of advertising campaigns. The same research indicates that 86% of respondents lack fully synchronised media and creative processes and technologies.

This disconnects manifests in three primary ways. First, siloed teams and technologies create inefficiencies, leading to higher costs and slower go-to-market times. Secondly, repetitive and irrelevant messaging can desensitise consumers, diminishing their responsiveness. Thirdly, the absence of creative intelligence prevents marketers from understanding what content truly resonates with audiences.

Addressing these gaps is paramount, particularly in the context of CTV where an innovative approach to media buying holds so much promise.

The temptation to rely on targeting alone to deliver results will only exacerbate the creative-media gap – just as much attention needs to be paid to making sure that the right content is being targeted.

REGULATION AND PUT CTV CENTRE STAGE

By leveraging advanced ad tech that integrates full marketing workflow, we can craft campaigns that resonate deeply with viewers and drive continued growth in the dynamic advertising space. Utilising CTV to drive advertising is particularly advantageous for entertainment advertisers with access to rich first-party data. Despite Google’s recent announcement that it no longer plans to deprecate third-party cookies and instead demonstrate their commitment to consumer privacy by offering an opt-in action for users (see page 12), advertisers are still encouraged to continue moving forward to shape omnichannel advertising strategies.

Cookies are notoriously unreliable and the growing importance of social media, CTV, and other cookieless channels necessitates the need for advertisers to adapt to a multi-ID, multisignal environment, regardless of Chrome’s changes.

While cookies remain mired in uncertainty, however, the Digital Markets Act (DMA) is certainly coming to fruition, its requirements mean that suddenly, streaming services’ rich firstparty data sets have become invaluable in allowing advertisers to maintain precision targeting without relying on external tracking. Building direct relationships with audiences through owned data ensures continued personalisation and relevance. In tough economic times, performance-driven paid media remains a critical investment for 63% of marketers, while 51% prioritise brand advertising, indicating the necessity of a fullfunnel marketing approach.

Data sharing has long been the backbone of data-driven advertising, but the continuing development of privacy regulations and the restrictions imposed by the DMA means it is imperative to be mindful of consumer choice and consent while adopting technology that isn’t cookie dependent. Fortunately, entertainment advertisers can leverage robust first-party data to connect the dots across channels, ensuring effective audience targeting and outcome measurement. This capability is essential for stronger data consent rules and maintaining impactful, personalised advertising campaigns.

Independent ad tech platforms are not just tools; they are transformative solutions designed to enhance creative relevance and activation across diverse digital marketing channels. These platforms enable a unified, omnichannel workflow supported by a consistent toolkit, which streamlines the creative process and drives growth in the competitive CTV landscape.

Rachel Lyall is Director of Marketing, EMEA and APAC, Mediaocean. www.mediaocean.com