Yesterday our New Zealand team invited 60 industry professionals to Seafarers in Auckland for a breakfast session focusing on all things connected TV (CTV). The event commenced with a presentation around global and local CTV growth, insights into audience behaviour and attitudes, as well as how it benefits advertisers, and ending with best practice recommendations for the buy side. This was then followed by a panel consisting of publisher, agency and tech partners with the aim of providing the audience with a multi-angled and holistic view of CTV.
Viewers are embracing CTV – are advertisers ready?
Connected TV has built considerable audiences over a very short period of time. This means an exciting opportunity for our industry, as well as the inevitable confusion around a new platform and differing definitions of what CTV actually is. We simplified the concept into one sentence. CTV is broadcast quality, premium long form video, watched on a TV set and delivered through the internet either built into the TV itself or through a device.
Why is this important? We are seeing a stellar growth in streams from CTV – 186% increase YoY between February 2017-2018. On top of this, research finds that most Millennials and Gen Z (the elusive generation) consider streaming ‘watching TV’ and that TV commands more attention in an average second, outperforming YouTube and Facebook. This is a channel that provides massive impact for brands, guarantees safety, and it’s growing fast.
All of that said, cross-device buying is still key to ensure you reach all the audiences you want. CTV is a new product so buyers and publishers should be inquisitive with their tech partners to stay informed. Measurement, specifically viewability is not yet available, but at the same time, common sense applies if viewability doesn’t apply to linear TV, why should it apply to CTV? It is inherently full screen and 100% viewable.
Honing in on CTV in New Zealand
As a nation of 4.4 million people, the notion of “reach” is significant and often discussed amongst the industry. Louis Niven, General Manager of Online Sales at TVNZ, shared that as television reach is in a slow decline, TVNZ as a business, acknowledged the need to invest heavily in their CTV OnDemand product which has contributed to impressive growth of streams within NZ. He also credited global streaming giants such as Netflix as ‘enablers’ for bringing viewers back to the big screen and suggested that premium publishers need to work together for advertising dollars.
We then turned to Juliette Stead, our VP of APAC, for her insights on other APAC markets to understand what she thinks will drive audience and commercial growth of CTV. She credited editorial, commissioning and product-led decisions such as releasing full series for binge watching, and revealing shows online first, as initiatives which will further grow audience. The introduction of platform logins to engage audiences, help tailor content to their tastes, as well as the commercial advantage of then allowing advertisers to overlay gender, demo or show targeting to their buys as ways to improve upon the user experience. A positive user experience is key, and commercial investment will help publishers to advance their product for audiences and advertiser alike.
We asked Max Havaux, Performance Director from PHD NZ, the key facilitator for NZ’s first non-guaranteed CTV-only campaign, about his rationale for running this activity. He explained that both he and the client saw CTV as an exciting and accessible new opportunity: it was high quality, TV inventory from a local premium broadcaster and, therefore, assured brand safety. In addition, it performed well, with high completion rates. The product essentially sold itself and helped the client achieve reach extension. This was great to hear as it acknowledges the benefits of the local publishers and affirms that broadcast supply is the most valuable supply to advertisers.
Our partner, The Trade Desk, was the DSP that PHD NZ used for the first non-guaranteed CTV buy mentioned above. They’ve also done a great job penetrating the NZ market so naturally, we asked Tom Weaving, Director of Business Development AU/NZ from TTD to share their success story. He echoed Max’s message that CTV is a great product and in demand due to its full screen and viewable nature. As such, TTD’s technical capabilities to frequency cap on this supply enabled their success and allowed them to help buyers manage all important metrics such as reach and frequency. We’re already seeing the NZ market doing the same as publishers continue to invest into new end-points and advertisers include new device types into their buys to ensure continued success.
Once again, a massive thank you to our guest speakers, attendees and the staff at Seafarers for making this a successful event!
Ka kite ano.