GroupM, IAS reports highlight complexity of navigating the connected TV landscape

Research shows changing ecosystem of players and advertising opportunity as well as the consumer engagement and data challenges facing brands in the connected TV space

Four in five connected TV viewers are comfortable with some of their data being shared with advertisers and half are ok with brands knowing what shows they’re watching regularly, a new report claims.

The findings come as a fresh study by GroupM into brands and media opportunities post-pandemic highlights the complexity and opportunity around TV and streaming content in a rapidly changing landscape dominated by US-based streaming providers.  

A new report from Integral Ad Science (IAS) into adoption and attitudes around connected TV (CTV) and streaming found 59 per cent of its 500 Australian respondents were not comfortable with anonymous demographic data about them, such as gender and age, being shared. An equal number are not comfortable about sharing the amount of time they spend viewing TV. However, only 20 per cent are against any data being shared with advertisers for a better ad experience.

According to the report, connected TV advertising is more acceptable to consumers than linear TV, with 92 per cent agreeing features of the CTV ad experience made it superior to its traditional counterpart. However, the report also made clear advertising is still a less welcome experience for most, with the ability to skip certain ads the top feature on the list (51 per cent). This was followed by shorter ads (44 per cent), fewer ad breaks (40 per cent), shorter ad breaks (39 per cent) and fewer ads overall (37 per cent).

By contrast, one in 10 reported liking the ability to interact with ads they’re interested in on CTV. What’s more, 17 per cent appreciated the relevance of advertisements against personal preferences.

In terms of current CTV ad experiences, 39 per cent of respondents said they are skipping ads when given the option, and 37 per cent reported “always seeing the same ads”. Despite this, one-quarter usually sit through the ads while streaming.

In addition, the IAS report found 41 per cent of respondents find it very important or important that ads are relevant to the content they are watching, and 49 per cent will view an ad to completion if it fits this bill. The most popular ad supported content on connected TV was YouTube (74 per cent of Australian consumers), followed by broadcast and cable TV channels (54 per cent).

Overall, the IAS report found 89 per cent of consumers surveyed to be streaming content on CTV devices, with smart TVs the top device of choice. This was followed by Chromecast (37 per cent) and PlayStation (27 per cent). Just shy of nine in 10 use an additional device while streaming content, and 17 per cent will look up advertised products on their mobile phones while watching CTV.

Streaming and the advertising dilemma

Even as advertisers grapple with the current CTV environment, a GroupM report into how brands can emerge from the shadow of the COVID-19 global pandemic shows just how rapidly the streaming market continues to change, adding further complexity and challenges for the TV advertising ecosystem.

The Emerging Stronger: Building Brands in a Transformed World report reiterated the consumer shift towards streaming viewing and claimed that while TV might remain superior to most other alternatives, advertising against premium TV content is likely to become more expensive and have less of a halo effect in future.

What’s clear already is that global streaming services are gaining increasing importance in television. US-based streaming players are rapidly establishing dominance over the global TV industry outside of China, with giants such as Netflix, Disney, Amazon, AT&T’s Warner Media and ViacomCBS spending billions of dollars on content each year they’re increasingly delivering direct to consumers.

“Collectively, the globally focused media companies are already spending many tens of billions of dollars on content every year and are now competing against media owners whose operations are both geographically constrained and financially limited in terms of the capital they can readily access,” the GroupM report authors stated.

As a result, consumers will increasingly view content in dedicated streaming environments. It’s a shift that’s picked up in the past year thanks to the COVID-19 pandemic.

The changing nature of viewing will see a growing share of the content consumers watch on TV sets remaining ad-free, making the medium less useful for achieving reach and frequency, GroupM claimed. For example, the media agency highlighted the difference between linear and CTV advertising ratios in the US: 16 minutes on linear TV, and 3 minutes on streaming TV per hour.

Then there’s the upsides. One is the rise of new video services that incorporate advertising, especially those from free-to-air broadcasters. Wider use of streaming platforms also brings greater opportunities for addressable advertising.

“Marketers will still be able to manage against reach and frequency as they always have, although it might be more expensive. For example, using normal approaches to buy television ad inventory, every incremental percentage point of reach is more expensive than the one that came before it,” the GroupM report authors argued.

“In the past, it might have been both very expensive and technically difficult to buy marginal points of reach. Addressable advertising may also make it easier to deliver ads to those audiences, although costs will likely be higher than in a world where everyone only watched conventional linear TV.”

In response, GroupM global head of partnerships, Kieley Taylor, said now is the time for brand marketers to assess their comfort across a spectrum of video contexts, from tentpole to premium to creator to gaming and user-generated content. She also flagged the growing prevalence of in-auto and virtual reality.

“Developing and conducting informed test-and-learn strategies this broadcast year will pay back dividends across your future year investments,” she added.

Don’t miss out on the wealth of insight and content provided by CMO A/NZ and sign up to our weekly CMO Digest newsletters and information services here. 

You can also follow CMO on Twitter: @CMOAustralia, take part in the CMO conversation on LinkedIn: CMO ANZ, follow our regular updates via CMO Australia's Linkedin company page

 

 

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments
cmo-xs-promo

Latest Videos

More Videos

"Blue" is really gorgeous and perfectly imitates a human customer support operator. Personally, I won't order a chatbot development for m...

Nate Ginsburg

Why the newest member of BT’s contact centre is a chatbot

Read more

As today’s market changes rapidly, the tools we use change, and it is important to adapt to those changes to continue to succeed in busin...

Anna Duda

Report: 10 digital commerce trends here to stay

Read more

MAN! this is really a well-written article. Anything regarding app development is well addressed in this article. Especially, the way you...

AIA Developers

Mini marketing leader takes group marketing reins at BMW

Read more

Lyre’s and Dohler will not be sued by Arkay Beverages for stealing Arkay’s trade secretshttps://www.openpr.com/news...

Reynald Grattagliano

Lyre's Spirit Co follow up investment injection with global media partnership

Read more

Yes Iggy, I totally agree.Quite frankly any MD who claims "....Everything has an ROI." is simply naïve and ignorant.I'm reminded of Educa...

Philip Macleod

Introducing Return on Outcome (ROO) - Brand science - CMO Australia

Read more

Blog Posts

How the pandemic revealed the antidote to marketing’s image problem

What does marketing truly ‘own’ in most organisations? Brand and campaigns, definitely. Customer experience? That remains contested ground.

Murray Howe

Founder, The Markitects

Still pursuing a 360-degree view of the customer?

On the Internet, nobody knows you’re a dog.” It may have been true in 1993 when this caption to a Peter Steiner cartoon appeared in the New Yorker. But after 30 years online, it’s no longer the case.

Agility in 2022

Only the agile will survive and thrive in this environment and that’s why in 2022, agility will need to be a whole-business priority.

Sam McConnell

Melbourne bureau chief, Alpha Digital

Sign in