Now that we’ve gone over our quick guide to OTT devices, it’s time to jump into the reasons why creating over-the-top content has proven to be of extreme value for media owners. According to eMarketer, OTT users will represent 71.2% of all internet users. Whether it’s through a set-top box, gaming console, or smart TV, connected TV CTV) specifically is earning more watch time from consumers.
CTV is valuable to advertisers as well as media owners because it’s incredibly attractive to consumers, offering a degree of control over video content that isn’t feasible for live or linear television. In this respect, the future of CTV lies in defending that value: giving consumers the power of choice without becoming prohibitively expensive.
Subscription video-on-demand services such as Netflix and Hulu are undoubtedly popular, but content is far from unlimited and each subscription bears an individual price tag. There is a tipping point past which consumers will be interested in accessing a wider variety of content on-demand, but unwilling to fork over an additional monthly fee to do so. This makes the case for a hybrid model of subscription-based VOD and ad-supported content, allowing consumers to enjoy the specific content they want without breaking the bank.
To expand upon this, as ad-supported content on CTV grows, media owners must strike the right balance between monetization and saturation. The challenge is to preserve the positive user experience that draws people to CTV while still generating the ad revenue that’s needed from a business standpoint. The good news is that these two goals are not mutually exclusive.
Connected TV advertising comes with a group of unique benefits that set it apart from video advertising on linear TV or online: high viewability, impressive completion rates, and enhanced audience targeting provide rock-solid justification for premium pricing on CTV inventory.
CTV users are engaged with content in a different way than other connected devices – they typically watch in a continuous fashion and are less likely to jump from one piece of content to the next. Based on 2016 data from the SpotX Platform, connected TV ads resulted in the highest completion rates compared to ads on mobile and desktop devices, coming in at 95%.
Source: 2016 SpotX Platform Report
Connected TV inventory is highly valuable to advertisers due to the high viewability and ad completion rates that those placements provide. Given the way users engage with connected TV, ads are typically short and captivating, creating a valuable and memorable experience for the viewer while driving higher revenue for the media owner.
The ability to analyze content topics, language, and location using login data from OTT devices provides a rich stream of audience data for media owners. In turn, buyers can use these insights to target users effectively to get their ads in front of the right people – another highly attractive feature of connected TV advertising.
With connected TV inventory in high demand, more and more media owners are bringing their content to the TV screen. For media owners, it’s a lucrative monetization opportunity, bringing in high revenues from advertisers who are eager to buy full-screen placements. Connected TV is poised to become a key component to the media owner’s video monetization strategy.