CONNECTED TV GUIDE: WHERE CAN I SERVE MY VIDEO ASSET?
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1 CONNECTED TV GUIDE: WHERE CAN I SERVE MY VIDEO ASSET? APRIL 2018
2 INTRODUCTION Does your digital video strategy reach audiences where they view video? A major video challenge for advertisers is how viewership continues to be fragmented across screens. However, on the flip side this is also the beauty of video since the number of opportunities to reach a target audience continues to grow. Though Connected TV (CTV) has not reached the same levels of ownership as desktop and mobile devices, it is a growing space that is worth consideration for multi-screen video buys. It is the way to reach your target audiences on the big screen! In 2018, emarketer estimates, million people in the US will use Connected TVs at least once per month a number that amounts to just over 55% of the general population. By 2021, the ranks of Connected TV users will swell to million, or nearly 58% of the population. Despite this groundswell of consumer adoption, connected TV advertising hasn t caught the world by storm yet! 2018 will be the year for Connected TV advertising. With numbers like these, and estimates continually increasing, it s more important than ever to incorporate the right TV strategy into your media plan and one that entails more than simply moving a standard TV budget over to Connected TV. This guide will help you learn how to take full advantage of this emerging channel and covers everything you need to know about the opportunities for digital video.
3 WHAT S INSIDE? The 411 on Connected TV Advertising 4 Digital Video: Connected TV Capabilities 8 Connected TV Strategies 14 FAQs 16 Getting Started with Basis and Connected TV 22
4 THE 411 ON CONNECTED TV ADVERTISING
5 In its simplest form, a Connected TV is a TV set that s connected to the Internet. This connection is made through built-in capabilities, like a Smart TV, or another device that enables a standard TV set to become a Connected TV. These include a media streaming device (like Roku, Amazon Fire TV, Apple TV, or Chromecast), a blu-ray player or a gaming console (such as Xbox and PlayStation). Video advertising on Connected TV occurs during the in-app experience. For example, if a Connected TV user opens an app such as Tubi TV to watch an episode of The Lone Ranger, a :15 or :30 video ad would play prior to the content starting. In this way, the experience is similar to a pre-roll ad watched on a laptop or mobile phone, but the user experience is more like a linear TV ad. US Adult Simultaneous Internet & TV Users by Device (millions) Smartphone Internet + TV users (+8.6%) (+6.4%) Desktop/laptop Internet + TV users (-0.4%) (-0.8%) Tablet Internet + TV users (+3.9%) 66.5 (+2.3%) Source: emarketer Q Digital TV Trends Copyright 2018 Centro, Inc. All Rights Reserved. THE 411 ON CONNECTED TV ADVERTISING // 5
6 The Benefits of Connected TV Advertising Connected TV is an additional device to find an audience. Early adopters are a valuable and growing audience. Inventory is in the most premium and engaging format available. Connected TV offers the targeting of digital advertising, with the lean-back experience of TV. When a consumer watches Connected TV, they are experiencing it in the same way they would watch linear TV on a big screen, but within the casual environment of their living room. When compared to the small mobile or laptop screen, a Connected TV ad is more immersive and relaxed, and often delivers higher completion rates than computer/laptop or mobile viewing. When compared to traditional TV, Connected TV provides an opportunity to reduce waste with greater targeting opportunities. Historically, advertising has been somewhat limited on Connected TV because viewership has been heavily skewed toward services like Netflix and Amazon, which are not ad-supported. According to comscore, 47% of viewing hours on these devices are spent with Netflix and Amazon. With more content providers being added to the mix, this has started to open up supply for ad placements. For example, in the first half of 2017, ad-supported hours streamed on Roku devices grew to 2.9 billion hours, which is a 76% increase compared to the first half of When it comes to advertising in the space, media buyers can work directly with publishers, content aggregators, and device manufacturers, or they can access inventory through a DSP. Copyright 2018 Centro, Inc. All Rights Reserved. THE 411 ON CONNECTED TV ADVERTISING // 6
7 NEARLY 70 MILLION US HOUSEHOLDS HAVE A CONNECTED TV STREAMING DEVICE 2017 Nielsen Total Audience Report 69% OF US HOUSEHOLDS HAVE A CONNECTED TV Leichtman Research Group (LRG) Copyright 2018 Centro, Inc. All Rights Reserved. THE 411 ON CONNECTED TV ADVERTISING // 7
8 DIGITAL VIDEO: CONNECTED TV CAPABILITIES
9 The definition of watching TV has changed. Individuals who have never had any standard TV subscription don t even call it TV they simply call it video. And for the first time in 2017, more US households have access to Netflix than DVRs (digital-video recorders). Connected TV (CTV) Connected TV uses an internet connection to watch OTT video on a TV. Over-the-Top (OTT) devices are used to make the connection. Gaming Consoles (such as Xbox) Streaming Device (including Chromecast, Roku, Apple TV) Smart TVs (via a built-in capability in the TV itself, Blu-Ray Player) Blu-Ray Player The opportunities for Connected TV are becoming more and more obvious. By now you ve determined that it needs to be part of both your brand s strategy and your overall digital video strategy. So how can you get started? In the following pages we ll walk you through how Connected TV advertising works, audience targeting, campaign setup, inventory partners available and much more. Copyright 2018 Centro, Inc. All Rights Reserved. DIGITAL VIDEO: CONNECTED TV CAPABILITIES // 9
10 Targeting with PMPs Target households based on traits like age, gender, income, presence of kids, vacationers or shopping intent. Select from content categories like sports, food and drink, style and fashion or automotive. With a dedicated Centro Private Marketplace team, our PMPs are updated often. Campaign Setup Device Select Connected TV as the device type you wish to target. Geography Generate brand impact with national targeting or select certain Designated Market Areas (DMAs). Device Make/Model Select specific models of OTT devices, gaming consoles, and smart TVs. Time and Day Maximize scale by targeting all times of day, or use dayparting to match your viewers schedules. Frequency Capping Apply a frequency cap at the ad-group level to control the frequency with which selected CTV households are served ads. Copyright 2018 Centro, Inc. All Rights Reserved. DIGITAL VIDEO: CONNECTED TV CAPABILITIES // 10
11 Connected TV Inventory There are multiple video deals available in Basis, including AT&T, DirecTV NOW, and Dish. There are also video packages that can be inserted into live streams on all of the major TV stations, via Sling and DirecTV. There are three main inventory sources in Basis, and these are just a few examples of what s available today: TV Content Owners Target inventory from specific CTV apps or networks to focus on content alignment. Premium Distributers Choose from a variety of distributors that aggregate TV content from multiple networks. CTV Supply-Side Platforms Many supply-side platforms (SSPs) are expanding to offer access to CTV inventory. Copyright 2018 Centro, Inc. All Rights Reserved. DIGITAL VIDEO: CONNECTED TV CAPABILITIES // 11
12 Ad Formats Ad placements on Connected TV are bought and sold like digital video, just on a TV screen. In-stream video ad placements that run within the stream of video content, look and feel like a TV experience to the consumer. This is still the most popular format available. If your brand only has standard :15 and :30 spots that were built for a traditional TV environment, this is the easiest place to repurpose those spots in a digital video environment. There are many opportunities for in-stream in the DSP, but site direct opportunities are available as well via the RFP process. Interactive pre-roll provides an opportunity to run interactive versions of these video ad formats because Connected TV is a hybrid screen and ads are served like digital video. This type of ad format offers a way to move beyond branding and awareness to offer an opportunity for engagement from the consumer. You may have seen these types of units on desktop or mobile devices in the past, and they ve more recently been coming to Connected TV. This is not available in the DSP but reach out for site direct opportunities. Home screen placements are available on some Connected TV devices. These are essentially banner ads on a TV screen, though some are clickable. You won t typically see as many clicks or engagements with these types of units as you may with the previous example of interactive pre-roll, but these ad placements offer the opportunity to potentially capture a user s attention before they may go into a non ad-supported app. This is not available in the DSP but reach out for site direct opportunities. Mid-roll placements are available through some private marketplaces. This kind of ad breaks up content, playing after the video has already started. It can be set to play at a designated moment, essentially pausing the content for a commercial break, or do it based on a unit of time that has passed. For example, after 5 minutes of view time an ad could play. This type of advertisement is best suited for long form content. Copyright 2018 Centro, Inc. All Rights Reserved. DIGITAL VIDEO: CONNECTED TV CAPABILITIES // 12
13 Measurements Measure the success of your Connected TV advertising with the following metrics: Impressions Delivered Cost Per Completed View (CPCV) Video Completion Rate (VCR) Video Quartile Completions View-Through Conversions Unique Device Reach SLING TV HAD NEARLY 1.7 MILLION US SUBSCRIBERS AS OF NOVEMBER 2017 according to Leichtman Research Group (LRG) Copyright 2018 Centro, Inc. All Rights Reserved. DIGITAL VIDEO: CONNECTED TV CAPABILITIES // 13
14 CONNECTED TV STRATEGIES
15 Bid Appropriately CTV ads serve on premium inventory, so you ll need to bid higher. Supplement Audience Targeting Strategies To scale video campaigns, supplement your CTV strategy by serving your video assets on other devices. Make a Deal Access video content on Connected TV devices through a variety of pre-negotiated PMP deals. You also have the freedom to negotiate your own deal. CTV RON Deliver your video message across Connected TV devices or make it RON across all devices for more scale. Copyright 2018 Centro, Inc. All Rights Reserved. CONNECTED TV STRATEGIES // 15
16 FAQS
17 Q: Why is the CPM so high? A: CPMs tend to be higher for CTV inventory because the inventory is more limited. Private Deals will be the most expensive, but CTV inventory in the open exchange does have higher CPMs than other types of video. Consider a video strategy, complete with all devices, to lower the ecpm. Q: Is there full episode player inventory? A: Yes, there is full episode player inventory through a variety of sources. Per the IAB, Full Episode Player (FEP) is a placement on a web page that has the ability to play videos that are TV-length (typically minutes, sometimes more), and often includes multiple ad breaks throughout the streaming video content. Basis has access to both FEP and short form CTV inventory in a variety of places, both via PMP and the general RTB. Q: Is both live and on-demand inventory available in Basis for CTV devices? A: There can be availability for both. We recommend verifying with the inventory sources available in your DSP. Reach out to learn more about inventory sources within Basis. Q: What is the difference between OTT Video and TV Everywhere? A: Both of these can be accessed via OTT devices/ctvs. The difference between the two is: - OTT Video is a stand-alone, streaming service, which does not require a cable or satellite TV subscription to access it. - TV Everywhere requires a traditional cable or satellite subscription and allows subscribers the ability to watch content from networks included in their cable subscription via apps or websites on a compatible connected device. Examples include HBO Go and Xfinity. TV Everywhere is available in Basis as a private evergreen deal for AT&T (DirecTV) and Roku. Copyright 2018 Centro, Inc. All Rights Reserved. FAQS // 17
18 Q: What is Programmatic TV? And can Centro help with that? A: Programmatic TV is an automated data-driven method of planning, buying, and delivering linear television ads. Yes, Programmatic TV is currently available through Centro Managed Services. Q: What is Addressable TV? And can Centro help with that? A: Addressable TV allows marketers to target specific households with Linear TV ads using data provided by broadcaster set-top boxes (STBs) and other data providers. No, this is not currently available with Centro. Q: Can we use 1st party/3rd party data across CTV? A: Neither 1st party nor 3rd party data can be used in programmatic CTV buys in Basis. However, we do have some Private Marketplace (PMP) CTV deals that are geared towards demographic and behavioral stats, for example, Sling TV has a PMP demo targeted to Ages You also have the freedom to negotiate your own deals or work with Centro s team as well. Q: Can we upload CRM data and use it to target? A: In order to facilitate this you would have to go direct to the inventory source, like Sling TV. This can be done through Centro Managed Services. Q: GRP - can we report back on GRP and Nielsen ratings? A: Unfortunately, this is not available at this time. Copyright 2018 Centro, Inc. All Rights Reserved. FAQS // 18
19 Q: Are there audience segments we can choose that have GRP/Ratings (GRP and/or Nielsen)? A: GRPs don t exist for Connected TV. There are different TV Universes between Traditional and Connected TV so it doesn t exactly equate. Some groups, like Yume, have made attempts to do some rough math, but it is meant to be directional and focuses more on TV to Digital spend. Connected TV is more similar to online video (and online display) than traditional TV, both in how it is bought (via impressions/views) and how it is measured. Q: Can we pull avails or predict inventory? A: Not directly. We recommend using the available impressions in the yesterday s auctions (Y day s Auctions) column as a guideline of available impressions. Keep in mind this is only granular to the state. Many sources of inventory are bought in real time, so the amounts are constantly changing. In addition, there are other bidders for the inventory, so even if we could estimate the availability, someone could out bid and win the impression. Q: Zip Code Targeting vs DMA Targeting? Does DMA size play a factor in inventory available? A: You can do either DMA or zip code targeting. Ideally you will use DMA when targeting CTV inventory. This will give you more inventory options. Q: Are we able to target a specific show through CTV? A: It is possible to target a specific show through a PMP deal, for example ESPN and Monday Night Football. Though not all shows are isolated in a PMP deal, some PMPs may list a few programs available. Copyright 2018 Centro, Inc. All Rights Reserved. FAQS // 19
20 Q: What KPI would you recommend when running CTV, how do you gauge success? A: When running CTV, the most suitable KPI is completed views. Success will be gauged with completion rate or cost per completed view, as well as with brand awareness, reach and delivery. Q: Are we able to track conversions when running on CTV inventory? A: It is technically possible, but not yet available in Basis. Though we do not have it with our current offering, it is being scoped by Centro. Q: Can I just target Xbox and PlayStation? A: When you set up a campaign there is an option for targeting Xbox and PlayStation models. Q: Can we target recent programming (ie: programming airing within 7 days of the original run date)? A: Not at this time. Copyright 2018 Centro, Inc. All Rights Reserved. FAQS // 20
21 $2.1B: PROGRAMMATIC TV AD SPENDING WITHIN US IN 2018 emarketer 38.9M AMERICANS WILL USE A ROKU DEVICE AT LEAST ONCE A MONTH emarketer Copyright 2018 Centro, Inc. All Rights Reserved. FAQS // 21
22 GETTING STARTED WITH AND CONNECTED TV
23 Still not sure about the benefits of advertising on Connected TV? Premium, Brand Safe Environment CTV video ads runs in HD-quality content, often within long-form TV or TV-like programming. 100% Viewable In-stream CTV placements are full-screen, just like traditional TV, with limited skippable ad options. Less Clutter, More Memorable Ads Ad pods are shorter than live TV, leading to fewer commercials airing and more memorable ads. Reach Multiple Viewers Unlike the one-to-one experience of desktop and mobile, CTV often reaches multiple co-viewers in a household. Basis is integrated with some of the biggest programmatic video exchanges in the industry, including SpotX, One by AOL, Tremor, and BrightRoll. Though it s possible to purchase some OTT inventory in the open marketplace via these supply partners, it s pretty scarce, and more of this premium video inventory is available through Basis PMPs. Today, these platform deals include inventory from partners like Samba TV, Scripps Networks, A&E Networks, 495 Communications, Newsy, Tubi TV, Sling TV, Bloomberg, etc. across all types of Connected TV devices. Basis also offers the opportunity to build custom PMPs for this inventory. Copyright 2018 Centro, Inc. All Rights Reserved. GETTING STARTED WITH BASIS AND CONNECTED TV // 23
24 READY TO START YOUR CONNECTED TV CONVERSATION? LOOK NO FURTHER THAN Contact us at centro.net today.
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