Even though connected TV (CTV) offers a major opportunity for platforms and brands, and while many can see the opportunities CTV has to offer, there are also a number of barriers to greater adoption, key among them is a lack of overall knowledge of the CTV ecosystem says research from Xandr.
In a bid to highlight and address these barriers, Xandr has released a guide to CTV, Advertising’s Creative Canvas 2021, to provide platforms and brands across the globe with actionable advice on advertising. Insights in the Guide come from interviews with 900 senior video marketers and viewpoints of major companies in the space including OMG UK and Peach Media.
Advertisers have high expectations of video platform partners. The primary concern in all regions is that it ensures brand safety, ranked most important by 83% of UK marketers. This is followed by prioritising user data privacy (73%), and inventory transparency (72%). Asked specifically about the convergence of linear TV and digital buying, advertisers indicated the biggest challenges likely to impact this in 2021 from the perspective of UK marketers.
The guide found that overall there was significant room for improvement when it comes to effectiveness of video advertising campaigns. Even though overall digital video ad spend was dramatically increasing in the UK, as many as 41% of digital video advertisers and buyers say that a lack of understanding of the ecosystem is one of the key barriers to greater adoption. Lack of supply (57%) and availability and quality of data (35%) were the other top as the other top challenges.
Half of UK advertisers do not believe they are effectively reaching the right audiences. This compared with 35% in France, 37% in the US and 39% in Germany. Just under a third (30%) of UK advertisers said that they were not effectively selecting the right media type – such as CTV or social media - to target audiences for campaigns.
In addition, more than half (52%) of UK marketers were not effectively optimising campaigns, compared with 35% in Germany and 37% in the US. Just over two-fifths (43%) of UK marketers said that they would not deliver effective creative, compared with 30% in the US. Almost half (45%) of UK advertisers do not believe they effectively selected the right content type such as news or lifestyle compared to less than a third (31%) in France.
“The connected TV opportunities are clear - so much so, that CTV, like TV, is fast gaining traction around the world and smart ad buyers are already contemplating their global CTV strategy,” said Austin Scott, head of EMEA video marketplace development at Xandr commenting on Advertising’s Creative Canvas 2021. “But, like any nascent technology, it is not without its challenges. That’s why we’ve launched our CTV Guide, to help buyers and sellers navigate and overcome the barriers to CTV, such as data accuracy, lack of understanding and supply, and ensure marketers effectively exploit opportunities in this new ‘golden age’ of TV.”
“To really thrive in the CTV space, you have to commit to the significant need for creative variations,” added Peach Media global chief digital officer Jason Trout. “With that comes a responsibility to ensure that users see appropriate advertising copy to consumer, engage with and feel drawn towards. Broadcasters would never allow the same ad to run in the same linear ad break, and certainly not with a similar competitor. The same rules should apply in the CTV world.”
Advertisers have high expectations of video platform partners. The primary concern in all regions is that it ensures brand safety, ranked most important by 83% of UK marketers. This is followed by prioritising user data privacy (73%), and inventory transparency (72%). Asked specifically about the convergence of linear TV and digital buying, advertisers indicated the biggest challenges likely to impact this in 2021 from the perspective of UK marketers.
The guide found that overall there was significant room for improvement when it comes to effectiveness of video advertising campaigns. Even though overall digital video ad spend was dramatically increasing in the UK, as many as 41% of digital video advertisers and buyers say that a lack of understanding of the ecosystem is one of the key barriers to greater adoption. Lack of supply (57%) and availability and quality of data (35%) were the other top as the other top challenges.
Half of UK advertisers do not believe they are effectively reaching the right audiences. This compared with 35% in France, 37% in the US and 39% in Germany. Just under a third (30%) of UK advertisers said that they were not effectively selecting the right media type – such as CTV or social media - to target audiences for campaigns.
In addition, more than half (52%) of UK marketers were not effectively optimising campaigns, compared with 35% in Germany and 37% in the US. Just over two-fifths (43%) of UK marketers said that they would not deliver effective creative, compared with 30% in the US. Almost half (45%) of UK advertisers do not believe they effectively selected the right content type such as news or lifestyle compared to less than a third (31%) in France.
“The connected TV opportunities are clear - so much so, that CTV, like TV, is fast gaining traction around the world and smart ad buyers are already contemplating their global CTV strategy,” said Austin Scott, head of EMEA video marketplace development at Xandr commenting on Advertising’s Creative Canvas 2021. “But, like any nascent technology, it is not without its challenges. That’s why we’ve launched our CTV Guide, to help buyers and sellers navigate and overcome the barriers to CTV, such as data accuracy, lack of understanding and supply, and ensure marketers effectively exploit opportunities in this new ‘golden age’ of TV.”
“To really thrive in the CTV space, you have to commit to the significant need for creative variations,” added Peach Media global chief digital officer Jason Trout. “With that comes a responsibility to ensure that users see appropriate advertising copy to consumer, engage with and feel drawn towards. Broadcasters would never allow the same ad to run in the same linear ad break, and certainly not with a similar competitor. The same rules should apply in the CTV world.”
