The CTV landscape—4 trends you need to follow in 2022
The OTT and CTV landscape is constantly changing, so what’s making the biggest headlines in adtech today?
Here’s the scoop on the most noteworthy trends impacting the CTV landscape in 2022.
1. Advertisers Look to Local Messaging
Over the last couple of years, local TV has played a pivotal role in amplifying crucial local stories and social initiatives. From the Black Lives Matter movement to locally-targeted vaccination campaigns, local TV gave a voice to community messages all across the country.
As states reemerged from lockdown at different times, advertisers needed to run hyper-targeted local campaigns catering to each area’s unique situation.
For example, a pizzeria chain may have been able to reopen its restaurant in New York, but not in Chicago. To achieve the granularity of paid search through Google or social platforms like Facebook or Instagram, the pizza chain would have to run custom creatives in each DMA:
“Come on in, we’re open,” in New York, but “Call for delivery,” in Chicago.
Luckily for these brands, hyper-targeted messages are easy in programmatic CTV advertising — but they’re much more difficult in traditional linear TV advertising.
“Local has never been more important than it is now and COVID has really proven that,” said Valari Staab, President of NBCUniversal Owned TV Stations, at the TVB Forward event. “People need to know what’s going on nationally. They HAVE to know what’s going on in their world, in their town, in their neighborhood.”
2. Measurement is Getting Deeper, Smarter, and More Standardized
Another trend impacting the CTV landscape involves measurement of CTV and OTT ad spend. Measurement of programmatic buying is shifting from a GRP-based methodology to impression-based. In other words, it’s moving from one-to-many to one-to-one.
This new type of measurement will allow digital marketers and advertisers to understand the value of every viewer and to customize storytelling.
“Impressions give us a standardized measurement, it’s consistent, gives us more accuracy — we’re not leaving any viewers on the cutting floor, they’re all being counted. In today’s world, that’s critical for our clients.” — Bill Sally, EVP of Sales at Nexstar Broadcasting Group
And the most accurate measurement of impressions will consider impressions across CTV devices. Joanna Drews, Cofounder & CEO of HyphaMetrics, explained at the last TVB Forward conference that her company is pioneering a new kind of panel that measures digital advertisements across linear, OTT, and streaming video. HyphaMetrics’ panel even measures across traditionally untouchable environments, like walled gardens and video games, across all devices.
This technology helps marketers understand behavior across all internet-connected devices in the home — whether someone’s watching Amazon Prime on their Roku TV or Netflix on their iPad. The result is a holistic picture of each individual’s behavior.
3. Adtech Will Gain Efficiencies Through Automation
There’s no question that advertising operations processes are modernizing, but maybe not as quickly as some programmatic buyers need. TV buyers are often stuck jumping between various platforms and spreadsheets to effectively optimize and improve CTV campaigns in flight, making it difficult to reach the right target audience.
The good news is that as more of television is delivered digitally, there are more opportunities for improving campaigns before, during, and after their flights. Innovative technologies like machine learning and AI are beginning to play a role in automating the process by automatically optimizing campaigns and generating real-time insights.
“There’s been this shift as CTV is becoming more important — instead of being treated like an extra piece of inventory that can be monetized, it’s moving into something that’s actually quite valuable because it’s where the consumers are.” — Adam Helfgott, Founder and CEO of Madhive
TV buying teams often spend so much time managing the manual aspects of their buys that it leaves them little bandwidth to focus on their larger strategic direction. Automation of campaign planning and monitoring will bring significant efficiencies to the process of advertising on CTV — from targeting effectively to finding premium CTV inventory to measurement and retargeting.
As the advanced TV space matures, automation will only become more ingrained in ad tech platforms and the industry at large.
“Automating the pre-buy process has been game-changing. We do it with less time spent, and we can use that time to do other things. We need automated makegoods, we need automated stewardship and we need optimization.” — Jennifer Hungerbuhler, EVP and Managing Director of Local Video and Audio Investment at Dentsu
4. The Smart TV is Getting Smarter
The TV industry has been making strides in 2022 by unveiling bold, new consumer technologies. Samsung and Sony are leading the pack, but they aren’t the only brands advancing the space. Across the board, TV manufacturers are integrating technologies that prove TVs are much more than just screens for watching shows.
Samsung announced unprecedented new features for its TV line. This included the ability to enable friends and family to co-stream content via video chat, play video games without gaming consoles using a dedicated TV app, and browse, purchase and display NFTs.
Sony, on the other hand, launched Bravia Cam, a webcam now included with its high-end smart TVs, which allows viewers to control their TV sets with hand gestures, receive alerts when they’re sitting too close to their screens, and automatically adjust built-in webcams to optimize Zoom calls.
As cord cutters continue to transition to streaming services, innovations in TV hardware will bolster the viewing experience for consumers, creating new opportunities for advertisers. CTV advertising allows advertisers to reach growing, incremental audiences, while reaping the engagement benefits of showing commercials on large, high definition screens.
Advanced CTV measurement tools, like ACR, help marketers capture a true signal of what viewers see on their TV sets down to the second, so they can understand how long viewers watched content before they flipped the channel or turned off their devices. By leveraging best-in-class TV technologies, CTV advertisers can run data-driven campaigns that are more hyper-targeted and ROI-focused than ever.
A final word on the CTV landscape
Don’t get too comfortable — things move fast around the world of video advertising! Where are data privacy regulations heading next, and what the heck is the Metaverse? We’re likely to see continued changes to adtech and the CTV landscape as these trends continue to evolve.
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