The evolution of Connected Television: from Linear TV to Addressable TV

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The evolution of Connected Television: from Linear TV to Addressable TV

The current television panorama is immersed in a transformation as deep as it is gradual . The advertising power of traditional television or Linear TV is based  united kingdom mobile number on two fundamental pillars: in its reach of mass and general audiences and in its indisputable capacity for branding. However, audiovisual consumption habits are changing at such a rapid rate that brands and advertisers cannot ignore the advertising implications of the advancement of Connected TV .Advertising and Connected Television: key definitions
The Connected TV advertising ecosystem encompasses the ads that appear on screen when the television is projecting content through its internet connection . This can be achieved through the mechanism built into the Smart TV , a streaming device (Chromecast, for example), video game consoles or OTTs (over-the-top), audiovisual content platforms such as Netflix or YouTube itselfIt is an advertising ecosystem that is in a maturing period. According to the study CTV is for Everyone from Spotx and Statista , 45% of European users consume content Smart TVs CTV . This is due to the fact that, on the one hand, traditional television continues to have a large number of followers and, on the other, the large operators continue to broadcast content through pay IPTV with their own decoders, where advertising locations are negotiated directly. with them The development of Connected TV does not mean the displacement of conventional television, but both models are destined to coexist in the coming years . However, Linear TV is finding it increasingly difficult to reach the younger generations, who follow new patterns of viewing content. The data provided by the IAB UK Changing the Channel report in this regard is revealing: 21% of viewers never watch live television as their first choice – thus preferring on-demand services-, a percentage that increases to 35% among users between 16 and 34 years old and, in the case of young people between 16-19 years old, it increases even more: up to 53%.The advertising strategy in Connected Television: opportunities
Traditional television is very effective when looking to carry out campaigns that achieve a lot of notoriety in a short period of time, but its main drawbacks are the deficiencies at the level of segmentation and the inability to coordinate cross-device campaigns . In this context, two fundamental concepts related to advertising and Connected Television were born: Programmatic TV and Addressable TV.

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The purchase of programmatic advertising applied to Connected TV represents an evolution compared to the traditional model dominated by GRP gulf email list  and Prime Time, focused on the reservation of specific spaces and time slots. The Programmatic TV system focuses on impacting audiences relevant to the brand , regardless of the content they consume. As a result, advertisers benefit from Addressable TV , which allows messages to be tailored to different audience profiles. In this way, two users who are watching the same program at the same time can see different ads. The most established segmentation options at present are the sociodemographic criteria and the content consumption patterns that Smart TVs collect. For example, these types of televisions relate a device ID with information regarding what programs are being watched on traditional television, which OTT apps are used the most, and how often or what type of games are usedHowever, Addressable TV platforms are allowing an increasing number of data sets to be integrated , something that only enhances the possibilities of segmentation . The following diagram reflects this process:Despite the fact that advertising on Connected TV is rich in formats and options, the user who consumes television has a more passive attitude towards those who interact on social networks , as the aforementioned study points out. For this reason and as it happens in the field of digital audio , the standards of measurement of results must be adapted to this unique channel and they are still being established in the industry. As proof of this, the United States Media Rating Council (MRC) published a guide at the end of 2019 that addressed the definition of the main metrics that affected Connected TV and digital video .

While this standardization is coming that interests both advertisers and content providers, a common and effective method to measure the impact of campaigns on CTV is the use of online surveys that compare the purchase intention and brand recall of users exposed to advertising in front of others who have not seen it. Its operation follows the same dynamics as that of the Brand Lift surveys on YouTube . The future of Connected TV as an advertising platform
Connected Television is making a niche for itself in the mix of digital marketing channels. The great challenge ahead is to ensure a powerful reach for campaigns in a highly fragmented environment at the audience level and content offering, and also to be effectively integrated into online marketing attribution models . Advances in CTV platform technology will undoubtedly help advertisers manage this complexity.

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