Cord-cutting — switching from a TV cable model to an internet-based one — is fast becoming the norm around the world.
In fact, today half of American citizens (60% of them young adults) access video content through streaming services. A streaming service refers to a provider of video, audio, or other content delivered over the internet. It’s also known as Over-the-Top (OTT). Netflix, Amazon Prime, and Hulu are all examples of streaming or OTT services.
The numbers speak for themselves: Streaming services provide a viable outlet on which publishers can advertise.
In fact, many publishers have taken advantage of this opportunity or plan to. 60% of Digital Buyers say they’ll shift Linear TV dollars to Connected TV (CTV) advertising in 2021. Whereas OTT is the delivery method for streaming content, CTV is the device on which the streaming services run. You can purchase CTV advertising to display across devices and OTT services.
Targeting and efficiency are two of the main benefits publishers can hope to see by investing in CTV advertising. However, there are plenty of other advantages of adopting this new strategy.
Benefits of CTV Advertising
Publishers are finding CTV advertising is a cheaper option for reaching their target audiences more easily. Because of the nature of streaming services, content is already topic-specific. If you know the demographics and psychographics of your audience, there’s a good chance you can locate them and show them highly-targeted ads via the content they’re consuming on OTT.
CTV advertising also gives you higher efficiency, with more reach and less competition for it from other publishers. There are other benefits to CTV advertising, too:
- It’s less expensive than traditional media advertising.
- You get better visibility into performance metrics.
- You can advertise across a variety of devices and streaming services.
You can get the most out of CTV advertising by taking a cross-channel approach. Show customers advertising on your website, social media sites, mobile devices, and OTT platforms. Essentially, you follow a potential customer with your offer wherever they access the internet, creating the 6-8 touches needed to convert them in the least amount of time possible.
Brands that have focused on multi-channel advertising like this report an average 500% improvement in ROI.
It’s not hard to be convinced of the efficacy of CTV advertising. However, with any new advertising outlet, there are always some unknowns. Publishers do need to understand the requirements that accompany OTT and CTV, especially when it comes to data privacy.
CTV Advertising and Data Privacy
While it’s true CTV advertising could be an exciting new revenue-generator for publishers, it’s important to process with a privacy-first mindset. Since OTT and CTV are still relatively new avenues of advertising, guidelines about privacy best practices for these channels are still being finalized.
However, you can use a privacy by design mindset to inform your advertising game plan.
As a best practice, consent and privacy strategies should be incorporated into OTT and CTV applications. As with all the other channels you use for marketing, it’s important to provide transparency and allow consumers to have choices over how their data is collected for advertising purposes via streaming.
Additionally, if you’re leveraging the IAB TCF 2.0 framework, it’s important to use a verified CMP, such as OneTrust, to appropriately capture consent and preferences and effectivley signal it downstream to ad tech vendors.
While it may require more legwork up front to implement privacy-first practices into your CTV advertising plan, it will be well worth the goodwill you’ll create with users by being transparent — not to mention the potential revenue you’ll gain as you execute CTV advertising.
Conclusion: Rely on CTV Privacy Technology
There’s exciting growth potential in CTV advertising for publishers. If you can give viewers a seamless user experience while respecting their data preferences, you have a good chance of making this channel a viable revenue stream.
CTV app consent technology is your golden ticket to achieving compliance with privacy regulations while also meeting your advertising goals.
In fact, OneTrust’s OTT and CTV App Consent solution features direct API calls and native SDKs to set and read consent and preferences across platforms including Amazon Fire TV, Roku, Apple TV, Android TV, and other Smart TVs. You can capture consent for compliance—while providing consumers with personalized content.
- OneTrust Dominates CMP Market as #1 for Two Consecutive Years
- What is OTT Advertising?
- OTT and CTV: Similarities, Differences, and How to Deliver Transparency