In today’s episode, we explore CTV and OTT advertising, highlighting key topics like measurement, tent pole events, optimization strategies, and future trends. With insights from The Trade Desk, we uncover the evolving landscape of CTV and OTT advertising and its impact on brands and advertisers.
Understanding Measurement and Inventory in CTV and OTT
Importance of Measurement:
- Accurate measurement is crucial for assessing the effectiveness of CTV and OTT advertising campaigns.
- Traditional metrics may not fully capture the impact of these channels, requiring a more nuanced approach.
Challenges in Measurement:
- Measuring success in CTV and OTT goes beyond traditional metrics like click-through rates.
- Unique measurement strategies are needed to track viewer engagement and ad effectiveness.
Inventory Accessibility:
- Access to premium inventory has improved, enabling advertisers to target specific audiences with precision.
- Programmatic platforms offer opportunities for efficient ad buying and targeting in the CTV and OTT space.
Tent Pole Events and Advertising Strategy
Tent Pole Events Significance:
- Events like the Olympics are crucial for video advertising on traditional TV and CTV/OTT.
- Clients are divided: some avoid these events due to increased prices, while others see it as a chance to reach a larger audience.
The Trade Desk’s Perspective:
- Tent pole events should complement a broader CTV strategy, enhancing evergreen campaigns.
- Aligning tent pole events with promotional periods can be powerful.
- Local and regional advertisers can now access premium events like the Olympics through The Trade Desk’s partnership with NBC, making it more affordable.
Practical Benefits:
- Running ads during events like the Olympics can effectively reach a wide audience.
- Establishing a baseline before and after such events helps measure effectiveness and justify the investment.
Optimization Strategies in CTV and OTT
Campaign Goals and Optimization:
- Optimization strategies depend on campaign goals, such as reach or return on ad spend (ROAS).
- Key strategies include cutting underperforming publishers, optimizing device types and creative versions, and adjusting based on time and geography.
Human Plus Machine Approach:
- Combining human intuition with AI-driven recommendations enhances optimization.
- Creative optimization in CTV is slower but identifying ads that drive conversions is possible over time.
Creative Versioning:
- Creative versioning helps understand which messages resonate best with audiences.
- Brand lift metrics can be useful in CTV for understanding ad recall and effectiveness.
Future Trends in CTV and OTT
Evolution of Upfronts:
- Networks are becoming more flexible, allowing programmatic activation of upfront commitments.
- This evolution is driven by changing consumption behaviors and the financial benefits of data-driven CTV impressions.
Live Sports Access:
- Programmatic access to live sports is expanding, with the Super Bowl being the last major event not yet available programmatically.
- This trend is expected to change in the near future.
Local CTV Measurement:
- The Trade Desk’s partnership with Comscore will enable robust local CTV measurement.
- This development will benefit both national and regional advertisers by tying together national, regional, and local advertising efforts.
Impact on Regional Brands:
- New measurement capabilities help regional brands with smaller budgets justify their spend.
- Smaller businesses can benefit from sophisticated measurement methods to demonstrate campaign effectiveness.
