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    Home ▸ Opinion ▸ A Sneak Preview of TV Advertising’s Future

    A Sneak Preview of TV Advertising’s Future

    Stefanie Briec
    March 9, 2023
    Fact checked by Vahe Arabian
    Vahe Arabian

    Founder and Editor in Chief of State of Digital Publishing. My vision is to provide digital publishing and media professionals a platform to collaborate and promote their efforts, my passion is to uncover talent and… Read more

    Edited by Andrew Kemp
    Andrew Kemp

    Andrew joined the State of Digital Publishing team in 2021, bringing with him more than a decade and a half of editorial experience in B2B publishing. His career has spanned the technology, natural resources, financ…Read more

    A Sneak Preview of TV Advertising’s Future

    The TV advertising industry has witnessed an explosion of premium video inventory. Subscription streaming services are adopting hybrid models and more ad-supported video channels are emerging to satisfy audience demand for accessible, quality content. 

    Bloomberg, for example, recently launched Bloomberg Originals to offer audiences newly commissioned content such as documentaries, live events, and video podcasts via its CTV app. Advanced TV, which includes connected TV (CTV), linear addressable TV, over-the-top (OTT) TV, and video-on-demand (VOD), will continue to be a dynamic space with 70% of  UK marketers intending to spend more on these channels in the near future, according to AudienceExpress’s latest survey (PDF download).

    Considering that this investment will accelerate progress in TV advertising, how will buyer expectations shape Advanced TV and what will the next phase of premium video’s evolution look like?

    Audiences in the Director’s Chair

    While premium video content has always drawn exceptional levels of audience engagement, in recent years the industry has focused on the channels and devices that viewers use to watch it. For the viewers themselves, these elements are a secondary consideration. Their priority is accessing the quality content they love – and this isn’t going to change. 

    In response, media owners and distributors are expanding their offerings or launching new ones to appeal to audiences. Broadcasters are moving beyond catch-up services and building comprehensive streaming platforms, while free ad-supported premium video platforms are becoming increasingly popular among viewers.

    CTV audiences in particular enjoy tuning in to these platforms, with 71% of UK respondents to FreeWheel’s 2022 consumer study using them at least once a week. 

    This trend is likely to continue, bringing advertisers and agencies greater scale and reach. Advanced TV campaigns will enable buyers to connect with valuable audiences, especially through sophisticated contextual and geotargeting solutions that will boost precision and ad relevance. 

    Cross-Channel Measurement

    As more channels and services enter the video advertising landscape, audience diversification will become an even more significant challenge for buyers.

    On one hand, free ad-supported streaming services (FASTs) and VOD platforms usually attract younger viewers and give marketers the chance to reach these elusive audiences through Advanced TV campaigns. On the other hand, more premium video platforms and services exacerbate fragmentation and the complexity this causes. 

    Overcoming this is a top priority for industry players and cross-channel measurement will be essential to achieving it. With 45% of respondents in the above AudienceExpress survey saying they considered maximising reach as the number one driver of campaign effectiveness, buyers will be looking for solutions that can offer frequency management and deduplication capabilities across all Advanced TV channels. Sellers, meanwhile, will be eager to facilitate this to meet buyer expectations, capture greater investment, and boost ad revenue. 

    Moreover, standardising campaign metrics will ensure that marketers can compare measurement data from any inventory source. This will let advertisers and agencies take a holistic approach to Advanced TV, driving performance and maximising spend. Standardisation will be key to unlocking the value of premium video inventory and making ad buying more transparent. 

    Prioritising Privacy

    Regulators’ crackdown on data privacy has been felt most acutely in the digital advertising space, with all major browsers either removing or announcing plans to remove third-party cookies. This will affect how digital advertisers approach ad targeting and measurement, motivating them to explore alternative solutions and cookieless environments.

    Advanced TV is one such environment and it is becoming more accessible to buyers, particularly those without the budgets to run traditional TV campaigns.

    Targeting and measurement tools for TV advertising have never needed third-party cookies to function, but data privacy remains a very important conversation for the industry. As the premium video ecosystem innovates how buyers and sellers leverage data, conduct media trading, and connect with viewers, data privacy will be placed at the centre of this progress. 

    One big benefit of Advanced TV channels is that they’re trusted by audiences, who agree to share their data with the platforms and services they use to access video content. The TV advertising ecosystem is responsible for maintaining and explaining the value exchange.

    Sellers will need to inform audiences that viewer data allows them to monetise their assets and offer more quality content. At the same time, advertisers and agencies must use this data to support the viewing experience, for instance by using advanced contextual targeting to align ads with audiences’ preferred video content. 

    The TV advertising industry is shaping itself to respect data privacy, furthering comprehensive measurement, and keeping viewers happy in 2023. These three priorities will be the common ground that brings together buyers, sellers, and technology providers as they collaboratively take the next step forwards for premium video advertising. 

    Disclaimer: The views, opinions and ideas expressed in this post belong to the author/s and do not necessarily reflect those held by State of Digital Publishing.

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