Today programmatic is a brighter environment than what it was in 2018. Now publishers and buyers are gravitating towards quality with scaled technology partners and are not afraid to cut ties with sub-standard strategies. Connected Television (CTV) has become a crucial space as it offers more in-depth targeting coupled with data analytics. The reporting is also at a much faster pace than ever, experienced within premium television.
More services are entering this space, especially the top-tier premium providers, and they are driving awareness and consumer adoption. This means that advertisers will spend on these services with ad-supported models. This will lead to an increase of ad-supported services, shifting the linear TV spend to CTV and digital platforms.
There will be tremendous pressure on Subscription Video on Demand (SVoD) services to be financially sustainable as it is challenging to balance original content deals and production costs with the monthly fee. Currently, consumers are signing up for multiple services. Subscription fatigue is getting real, but consumers will be around for almost four services until they hit their financial limit. To start with, streaming services will offer lower-priced or even free offers and ad-supported models to attract marketers and audiences at a scale to remain profitable.
According to the ‘Outlook For Data-Driven Marketing: First Look 2019’ report by Winterberry Group, half of the marketing professionals rank programmatic TV as a ‘top of mind’ platform among the emerging digital channels. The report also mentions that over 15% of professionals also have included CTV in their media plans. Experts believe that this gap is also closing as marketers are starting to buy TV programmatically and are seeing the progress. Programmatic will play a more significant role in advertising strategies.
Programmatic CTV enables the brands with analytics and digital’s precision targeting, combined with traditional TV’s premium environment and all of this at a much faster pace.
As far as measurement and the RoI are concerned, the industry still needs third-party, independent analysis or verification. The future marketing measurement focus is more about true impression measurement as well as targeting via a device which digital offers. This has opened up more opportunity with the true impression-based customer and audience measurement.
There needs an increased need to innovate. Players need to introduce new technologies and promote fresh thinking. It needs to be unified and not spread out, as too many ideas and options will cause buying hesitancy and even potential paralysis. The industry must continue to work hard to unlock marketing budgets and grow this space.