By Adam Royle, Director of Publisher Business Development and Strategic Partnerships, Roku
The future of TV advertising is streaming. As linear viewership declines accelerate, connected TV (CTV) ad spend continues to grow its share of the total U.S. TV advertising market. According to eMarketer, CTV is projected to collect approximately $19B this year. As many traditional TV publishers adapt to these shifts in consumer behavior and previously subscription-based services enter the ad market, competition for TV streaming ad dollars is strong.
Deploying a digital-first strategy will allow TV publishers to increase the value of their inventory and audiences across linear and streaming. Through innovative ad products and solutions, TV publishers can now leverage the latest in automation to streamline operations and drive ad monetization.
Linear and TV streaming advertising are converging
More than ever, advertisers want to reach and measure audiences across screens. Likewise, publishers need to maximize the value of their inventory and audiences, regardless of the distribution pipe those audiences use to consume their content. Leading TV publishers are adopting ad technology specifically designed to support and grow all TV inventory. At Roku, we introduced Dynamic Linear Ads (DLA), a product built to help publishers and advertisers bridge the digital gap by dynamically replacing a linear ad with a targetable digital ad, creating a better TV experience for viewers.
Addressable TV is evolving
For years “legacy” addressable was limited by scale, price barriers and antiquated set top box and cable technology. As a result, publishers and advertisers were often forced to serve ads that were of limited relevance to the viewer. Through the advancement of Smart TVs and the Automatic Content Recognition (ACR) technology built into them, addressable TV advertising is now set to scale across all programming, audiences and dayparts. ACR technology unlocks a deeper understanding of who the consumer is, what they are watching and what ads they have and have not seen. This data, in turn, can be used to better plan, activate and measure future campaigns. Historically this level of accountability has not been possible in linear TV at scale.
While the TV streaming opportunity is large, several factors can stand in the way of success. For example, first-party data is hard to get right, creative and production quality is critical to fulfill the rich storytelling potential of CTV and managing reach and frequency is easier said than done.
TV streaming advertising is a win-win for everyone
Whatever the future holds for TV streaming, one thing is clear: personalization and accountability is key. Reaching the right viewers and driving outcomes is what will make content owners stand out in the streaming age. The platforms and partners that content owners choose will be critical in navigating and winning as the shift to TV streaming continues.
Attending Advertising Week in person or virtually? Check out Roku’s session, “Winning in TV Streaming: Turning Content into Coin” on Wednesday, October 19 at 11:15 AM to learn more and be sure to see Roku’s full agenda.