The role of TV OEMs in CTV advertising with Tony Marlow, from LG Ad Solutions.
Sep 10, 2024
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Join Tony Marlow, Chief Marketing Officer at LG Ad Solutions, as he dives into the dynamic world of Connected TV advertising. Discover how 'streamflation' is reshaping viewer preferences and driving growth in free ad-supported streaming. Learn about the significance of Automatic Content Recognition (ACR) data and its role in targeting strategies. Tony also discusses the rise of interactive TV ads and the merging of retail media with streaming services, all while emphasizing the importance of innovative advertising formats in today’s digital landscape.
TV OEMs are pivotal in evolving the advertising landscape by harnessing ACR data for precise audience targeting and engagement.
The phenomenon of 'streamflation' is fueling the rise of FAST services, reshaping consumer preferences towards ad-supported streaming options.
Interactive TV ads are becoming essential for maintaining viewer interest, balancing engagement with monetization while avoiding disruptive advertising experiences.
Deep dives
The Importance of the Home Screen in Viewing Behavior
The home screen has become the crucial starting point for any viewing experience, serving as the environment where initial impressions occur. As viewers engage with their devices, they spend an average of over 11 minutes deciding what to watch, highlighting the significance of content discovery in this space. This trend demonstrates a shift from traditional TV experiences, where ads were limited to 15 or 30-second spots, to a more integrated approach that includes native advertising within the home screen. Successful ad campaigns, such as those promoting movies like Barbie, illustrate the potential of capturing audience attention in this pivotal decision-making moment.
The Role of ACR in Targeted Advertising
Automatic Content Recognition (ACR) technology acts as a crucial tool for understanding viewing behaviors and tailoring ad experiences to specific audiences. By analyzing both audio and visual elements, ACR provides insights into household preferences, helping advertisers determine whether they are engaging with sports fans or movie enthusiasts. This data enables advertisers to create more effective campaigns by ensuring that relevant content reaches the right viewers at the right time, eliminating the misguided belief that ACR only applies to streaming content. Additionally, combining ACR data with other external factors, like weather conditions, further enhances the granularity of targeted advertising.
The Evolution of Content Accessibility and Viewer Choice
The streaming landscape has transformed consumer expectations, granting viewers unprecedented choice between ad-supported and subscription-based content. Fast advertising-supported streaming (FAST) services are experiencing significant growth, driven by factors such as cost of living crises and 'streamflation' as the cumulative costs of individual streaming subscriptions may exceed traditional cable prices. This shift has resulted in a rising acceptance and engagement with ad-supported media, creating a broader array of viewing options that empower consumers to select their desired experience. As this trend evolves, the ad-supported model is poised to expand, providing viewers with even more choices without the burden of subscription fees.
Balancing Engagement and Monetization in Ad Strategy
The future of advertising in connected TV hinges on striking a balance between viewer engagement and monetization opportunities. Enhanced ad capabilities, such as integrating QR codes or clickable actions directly within content, are creating interactive experiences that captivate audiences while still providing brands with valuable visibility. However, there are concerns about intrusive advertising and the potential to disrupt viewer experience, reinforcing the need for ads to be relevant and engaging without detracting from content enjoyment. This presents a unique opportunity for brands to leverage advanced targeting technologies while maintaining viewer satisfaction through thoughtful ad placements.
The Strategic Positioning of OEMs in Ad Ecosystems
Original Equipment Manufacturers (OEMs) are well-positioned to redefine the future of television advertising by leveraging their control over hardware, software, and viewer data. This control allows for a more cohesive advertising ecosystem that minimizes issues like over-frequenting ads and enhances targeting accuracy across their devices. By utilizing ACR data, OEMs can facilitate effective audience measurement and ultimately pave the way for a more comprehensive view of what television advertising can become. As the landscape evolves, the integration of advertising services with hardware and digital platforms will play a crucial role in shaping the future of advertising strategies.