Marketers are looking for ways to reach target audiences while not bombarding them with repetitive commercials on connected TV (CTV) and traditional linear channels. Original equipment makers (OEMs) can provide unduplicated reach because most households only have one brand of smart TV in their living rooms.
“Our research shows that there’s very little duplication across the major OEM households,” Katie Barrett, head of programmatic at LG Ads, said in this interview with Beet.TV. “It allows advertisers the ability to buy audiences within our walls without very much overlap, especially now that our datasets are not available elsewhere.”
Automatic content recognition (ACR) technology provides insights on which commercials and programming appear on a TV screen, helping marketers to optimize their media buying strategies.
“It gives advertisers the majority of audiences and inventory on streaming platforms from a handful of partners,” Barrett said. “This simplifies the overall fragmentation that’s going on in the universe, making it almost as easy as broadcast TV buying, but this time with a lot more sophisticated data that will allow to find actual incrementality amongst unreachable audiences.”
LG Electronics this year launched LG Ads as the consumer electronics giant rebranded its Alphonso adtech and analytics platform. The company this month introduced a smart TV operating system called River OS to support a more personalized viewing experience for consumers.
‘Home Page of the Household’
Similar to digital media, CTV data provide a variety insights about media consumption habits. The information helps marketers to manage their reach and frequency, and stand out from their competitors.
Source: eMarketer Insider Intelligence
“OEMs or smart TVs who are collecting ACR are understanding everything that touches that glass,” Barrett said. “What that offers is an opportunity to have a similar experience in the living room, where now the smart TV is really the home page of the household.”
Advertisers that commit budgets to CTV platforms are more likely to reach audiences that have canceled their cable and satellite service in favor of streaming video.
“We’re seeing that CTV and OTT are only accounting for a small percentage of overall reach,” Barrett said. “This isn’t because the OEMs and streaming platforms can’t deliver it, but rather marketers as a whole are not buying enough impressions to have real scale within the platform. They need to move those dollars over to actually achieve the promise that CTV can offer them.”
You are watching “Transformation: CTV and Data Are Changing the TV Advertising Marketplace,” a Beet.TV leadership series presented by LG Ads. For more videos, please visit this page.
