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Connected TV Connected TV Advertising’s Creative Canvas, 2021 Contents Introduction ���������������������������������������������������������������������������������� 02 The Advanced TV Landscape ���������������������������������������������������������������� 04 Navigating the CTV Opportunity ������������������������������������������������������������� 08 Converging TV & Digital ���������������������������������������������������������������������� 14 Regional View ��������������������������������������������������������������������������������� 18 Australia �������������������������������������������������������������������������������� 22 Taiwan ���������������������������������������������������������������������������������� 28 France ���������������������������������������������������������������������������������� 34 Germany �������������������������������������������������������������������������������� 40 United Kingdom ������������������������������������������������������������������������� 46 LatAm Overview ������������������������������������������������������������������������ 52 Brazil ������������������������������������������������������������������������������������ 58 Mexico ���������������������������������������������������������������������������������� 64 United States ��������������������������������������������������������������������������� 70 Summary ������������������������������������������������������������������������������������� 76 Glossary �������������������������������������������������������������������������������������� 80 01 Introduction The gap between digital video and linear TV spending continues to narrow Australia Mexico Once upon a time, they were two different worlds. But now TV and digital have collided — and that is transforming the future for viewers, media owners and advertisers. $6bn $6bn $5bn $5bn $4bn $4bn $3bn $3bn While there has been some discrepancy Viewers globally have flocked to $2bn $2bn over the meaning of convergence, it simply video-on-demand (VOD). Subscription $1bn $1bn refers to our ability to reach and engage video-on-demand (SVOD) services $0bn $0bn consumers across channels, formats and like Netflix, Disney+, HBO Max, Now 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 screens with a consistent message. As such, TV, France’s myCanal, India’s HotStar, it is understandable why analysts say we Singapore’s Hooq, and Australia’s Stan are living through another “golden age have boomed. Yet this new world is not just Brazil Taiwan of television.” In this era, traditional linear about ad-free experiences. The majority viewing, while still relevant, is declining, of OTT consumption is expected to be of $6bn $6bn heavily influenced by the growth in advertising-supported video-on-demand $5bn $5bn popularity of Video on Demand and (AVOD) platforms2 and most will consider $4bn $4bn $3bn $3bn internet-connected viewing devices a hybrid model. $2bn $2bn resulting in new TV services emerging. $1bn $1bn $0bn $0bn Global users of over-the-top (OTT) TV 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 services are forecast to grow from 1.8 billion in 2017 to 2.9 billion in 2025.1 For platforms and brands ready to innovate, Germany UK that represents an extraordinary new opportunity. Connected TV (CTV) is not $6bn $6bn just stabilising TV, it is taking it to new Global OTT services $5bn $5bn heights — and the COVID-19 pandemic are forecast to grow $4bn $4bn $3bn $3bn has accelerated this shift. by 61%,from 1.8bn in $2bn $2bn 2017 to 2.9bn in 2025. $1bn $1bn That’s 5.44% Compound $0bn $0bn Annual Growth Rate 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 (CAGR) over 9 years. France US $6bn $35bn $5bn $30bn $25bn $4bn $20bn $3bn $15bn $2bn $10bn $1bn $5bn $0bn $0bn 2016 2017 2018 2019 2020 2021 2016 2017 2018 2019 2020 2021 1 Statista “OTT Video” forecast, www.statista.com/outlook/21120/100/ott-video/worldwide 02 2 Statista “OTT Video” forecast, www.statista.com/outlook/21120/100/ott-video/worldwide Linear TV Digital Video Source: MAGNA Global Forecast, June 2020 03 The Advanced TV Landscape Reaching the right audience with a relevant message is top-of-mind for advertisers and Connected TV is a huge opportunity for Digital video investment drivers the changing TV landscape offers a variety of ways to which they can do this, depending advertisers to reach engaged audiences on specific needs and campaign KPIs. with the right message wherever they may be. People have changed the way in 57% which they consume big-screen content, Targeting and with that, advertising is also adapting efficiencies to keep pace, opening up a world of new opportunities for advertisers. Linear TV 44% ∙ Audience login and authentication Delivery of TV advertising Broadcasts go to the full footprint of viewers, typically nationwide. allows advertisers to target individual campaigns at scale households or viewers. Ad purchase and play-out is typically set far in advance. ∙ Digital attribution will help them 38% identify the link between ad exposure Gain competitive Addressable TV and engagement. advantage Customised ads can be stored for swap-out during transmissions. ∙ Return data flow and rapid execution means buyers can analyse and 36% Ads are delivered in real-time. optimise campaigns with agility, Data without needing to lock in to lengthy insight Household-level targeting, even if different households are watching or rigid upfront commitments. the same content. 36% Complementing OTT/CTV the media mix The most targetability. Source: IAB Europe, Attitudes to Digital Video Advertising Report 2020, www.iabeurope.eu/ Ads are delivered in real-time. knowledge-hub/iab-europe-attitudes-to- digital-video-advertising-2020-report/ Audiences can be reached at the device level. 04 05 Digital video investment barriers These two diverging trend lines — the challenges to broadcast TV and the growing embrace of increasingly capable 57% connected TV in its place — mean CTV is Lack emerging as the premium channel for the of supply post-linear future. But few births are without difficulty. 41% The same forces of innovation which have Lack of understanding led to a proliferation of viewing options of the ecosystem also makes CTV ad trading significantly different from traditional linear, whilst its global expansion presents additional 35% complexity for the advertising industry to Availability and manage with many in the industry citing a quality of data lack of understanding as one of the biggest challenges of CTV. 31% Lack of large audience scale This handbook aims to provide 28% a guide to opportunities and Lack of standard challenges around CTV, an identifiers overview of practices in key global markets and actionable advice for those leaning into the Source: IAB Europe, Attitudes to Digital Video CTV age. The evolution won’t be Advertising Report 2020, www.iabeurope.eu/ knowledge-hub/iab-europe-attitudes-to- quick, but it will be audience led digital-video-advertising-2020-report/ and we have time to lay the right foundation for a transparent and sustainable ecosystem to thrive. 06 07 Navigating the The Benefits of ‘Going Digital’ Laser-Like Targeting Improving Control and Efficiency According to Xandr’s 2020 Relevance CTV buying is executed using ad trading CTV Opportunity Report, using data for precision targeting software rather than manual insertion is the leading way to make ads relevant orders, helping buyers and sellers alike with over 50% of respondents in France, stay in control and improve efficiency. UK, Australia and Brazil citing this was the number-one-way data is used. Traditionally, Holistic Approach CTV presents the “best of both” worlds, which combines the scale and attention TV buyers have only been able to target TV isn’t solely a brand-building medium. achieved through traditional TV with the precision of digital. Viewers are in more rough demographics such as age and With return on investment at top-of-mind control and open to new ad experiences. gender. By introducing programmatic for all marketers, CTV provides the methods, CTV benefits from being driven opportunity to record and marry by real-time data, providing an opportunity ad exposure to outcomes like ecommerce for precise targeting at local, household or check-out, retail visitation or app even device-level. Today, marketers can use download allows for full-funnel attribution first-party data from their own CRM and and performance-oriented TV. transaction records, online data such as Benefits of TV Benefits of Digital website visits and available digital segments Increased Responsiveness indicating, for example, kids at home or The digitisation of the TV-buying workflow Trust/Safety Automation and flexibility occupation type, to identify when and where will speed up ad trading. More than that, to reach their desired audience. the ability to activate, optimise, report Mass audience reach Precise targeting and optimisation and adjust campaigns rapidly allows ad Frequency Capping buyers to change their creative messaging Consumer attention CTV Multi-screen strategy Consumer fatigue due to excess ad or spending commitments far quicker A unified platform exposure can be a brand-killer, and a than traditional TV would typically Standardised measurement Measurement reporting granularity waste of valuable advertising budgets. afford, as many had to do early in the (BARB/Nielson) But there are digital controls available within COVID-19 pandemic. the CTV landscape that allow ad buyers to cap a specified maximum number
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