By Chris Kleinschmidt, VP of Connected TV Advertising Sales, TiVo
The Future of TV Advertising Global conference in London recently hosted an engaging panel discussion on the theme of “Expanding Digital TV Inventory and Reach.” As a panellist, I had the opportunity to share my insights on the evolving connected TV (CTV) advertising ecosystem alongside industry leaders from Essence Mediacom, LG Ads, AMC Networks and M6 Publicité who are at the forefront of shaping the future of digital TV. The conversation was lively, with food analogies used throughout to make complex topics more accessible. In this post, I’ll summarise three key trends shaping the future of digital TV advertising, drawing on the insights shared during the panel.
1. The Rise of FAST Channels
A major trend in the CTV landscape is the continued rapid rise of Free Ad-Supported Streaming TV (FAST) channels. Over the past two years, these channels have gained significant traction, providing viewers with a cost-effective alternative to subscription-based services. The demand for free, ad-supported content is growing, and FAST channels offer a variety of programming that attracts a broad audience in a lean back experience, akin to traditional linear TV viewing.
To illustrate the role of FAST channels, I likened them to an “aperitivo”—a pre-meal drink that sets the stage for the main course. While FAST channels are not yet the central element of the European TV ecosystem, they are certainly gaining momentum and complementing traditional linear TV. This analogy highlights how FAST channels are becoming an increasingly important part of the overall media mix, with their influence expected to grow.
2. Enhanced Measurement and Targeting
Accurate measurement and effective targeting are key to the success of CTV advertising. The panel discussed ongoing advancements and challenges in this area, with an emphasis on cross-media measurement and the need for a unified system to provide a comprehensive view of audience behaviour across platforms. Such a system would enable advertisers to gain a deeper understanding of their audience and optimise campaigns for maximum impact.
The complexity of the TV ecosystem was aptly compared to a “five-star all-you-can-eat buffet,” where viewers have access to a wide range of content. Navigating this diverse environment requires sophisticated measurement tools, which allow advertisers to understand where and how viewers are consuming content. This, in turn, enables more effective targeting to reach the right audience at the right time. Everyone knows that in a buffet you go to the high ticket items first, when will that be CTV?
3. Content as the Core Driver
Content remains the cornerstone of the CTV advertising ecosystem. High-quality, engaging content is essential for attracting and retaining viewers, which is why broadcasters and content owners are investing heavily in exclusive and original programming to stand out in an increasingly competitive market. This focus on content is supported by advanced targeting and measurement tools, ensuring advertisers can connect effectively with their desired audiences.
The importance of content was highlighted through the analogy of a “Sunday roast” or “Thanksgiving turkey”—the central dish around which everything else revolves. In the digital TV space, content can be “sliced,” meaning it can be segmented and targeted to specific audiences, enhancing its value and reach.
Key Takeaways
CTV publishers, broadcasters and advertisers should work closely together to develop a cohesive video planning strategy, ensuring they navigate the complexities of the CTV landscape and maximise the potential of digital TV advertising.
Advertisers were encouraged to think of their strategy as a “smoothie,” blending various elements into a unified whole. Viewers, it was pointed out, do not differentiate between different types of content delivery—they simply want to watch their favourite shows. Advertisers, therefore, need to focus on creating a seamless viewing experience that aligns with audience preferences.
The key takeaway from the panel is to simplify the approach to how people spend time on TV and distribute TV dollars across different platforms. A cohesive strategy that addresses both advertisers’ and content owners’ perspectives is essential to fully capitalise on the opportunities the CTV landscape presents.
Watch the full recording here:
If you have any questions or would like to learn more reach out to getconnected.emea@tivo.com
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