In a 2017 survey commissioned by SpotX, we learned that 100 percent of advertisers and 94 percent of content owners believe that leveraging third-party data is the primary business driver for moving to audience-based buying and selling of ads.
Moreover, the expected increase in return on advertising spend was 11-20 percent. This response is no surprise, considering another study demonstrated a 22 percent increase in revenue when third-party audience data was utilized. Who wouldn’t want to capture an 11-20+ percent revenue increase on their inventory?
It’s fair to say that audience-based advertising on OTT is beneficial for both publishers and advertisers. Advertisers reach the audience they want with reduced waste compared to TV advertising, and publishers receive a higher eCPM on their inventory. Additionally, OTT viewing on connected TV (CTV) is growing, enabling a more engaging advertising environment than mobile/desktop due to long-form content and high-quality HDTVs. It also enables a more useful environment than traditional TV due to less second-screening and improved metrics and reporting.
Capture the revenue with third-party audiences
SpotX has solutions to help target audiences in connected environments. The Audience Management Engine is integrated with Tru Optik for third-party CTV audience segments, and you can increase the value of your campaigns by utilizing Tru Optik audience segments on CTV directly through the SpotX Publisher Platform.
The forecasting engine allows you to estimate the number of impressions you can deliver for each targeted segment to ensure you don’t reduce your scale by layering too many targeting options. Viewers of CTV skew younger and more affluent than the general population, and the integration with Tru Optik allows you to slice that audience even further to fulfill your campaign goals.
First-party on CTV
Don’t forget about using your valuable first-party audience data! In the same survey, 63 percent of pay TV providers suggested first-party data as a business driver for adopting audience-based ads in OTT. We expect several of the leading DMPs to support first-party data on CTV soon.
Be careful of scale!
We’ve certainly underscored the benefits and ease of targeting audiences on CTV, but it is important to note that you need to be mindful of scale in this environment. Although CTV is growing rapidly, you can’t expect the same reach you see in digital. Utilize Campaign Forecasting for guidance on how many segments is “too many,” and be realistic about your campaign goals.
To learn more about audience capabilities on the SpotX Platform, get in touch with a member of your Account team or click here to learn more about our platform.
This article was written by Eric Shiffman, product marketing manager at SpotX.