WILL CTV ADVERTISING ADAPT TO CONSUMER BEHAVIOR?

Media consumption has transformed before our very eyes, pushing the digital ad industry into a state of hyper growth over the past decade. Not surprisingly, this rapid shift has brought about new best practices and hot topics in a very short amount of time, from OTT (over-the-top) advertising to CTV (Connected TV) advertising to programmatic.

After tapping your wearable device, a push notification appears on your phone within seconds, prompting you to review product offerings. You instinctively say, "Siri, view later," as the 30-second advertisement comes to an end, returning to the show you were watching. Following this, retargeting advertisements start appearing on your phone and browser, reminding you of the brand you saved every few days until you either make a purchase or remove it from your bookmarks.

As a result of the progress made in facial recognition technology, voice command software, and machine learning, we may reach the stage of complete immersion sooner than anticipated. Our team of experts has identified five emerging trends in connected TV (CTV) advertising that are likely to emerge over the next decade.

One of the greatest differentiators of CTV ad campaigns currently is the fact that ads are not skippable, which allows for a higher view rate and completion is almost 100%. On the other hand, the drawback is the inability to take action and “click” on a CTV ad. We believe that this will soon change.?

Some smart TVs, like Amazon Fire TV and Roku TV, can already be controlled via mobile phones. As smart home technology continues to progress, the bluetooth/wifi cross-device connection will become more seamless. Multi-experience content, where variations of media sync across devices, will become increasingly prevalent. In this scenario, the mobile phone will serve as a connection to the CTV ad campaigns, allowing users to view ads on the largest viewport (television) for maximum impact and "click" on their phone to visit a brand's website or shopping portal on their handheld device. This transition will necessitate a significant shift in creative strategy to ensure a smooth and effective transition from device to device.

Voice recognition and voice command will play a key role in changing ad engagement. Technology advancements are pointing us towards a future where we live in a seamless, multi-experience world. People want?convenience?at every stage of shopping–voice command allows for that.?Amazon reported last year that individuals were “increasingly” using Alexa Voice Shopping, although overall adoption is still low. As we embrace IOT (Internet of Things) technology, the future will see consumers leveraging voice shopping to maintain a more effortless lifestyle. Engagement may not be limited strictly to “clicking” and may begin to include “replying.” It isn’t far-fetched to picture an individual taking action by issuing the command:?“Hey Siri, can you send this offer to my phone?” or “Hey Alexa, can you order me that pizza using that deal that was just on the TV? It sounds delicious and I IS HUNGRY!”

Traditional TV networks like FOX, NBC, and ABC still reign supreme when it comes to significant sporting events such as the NBA Finals, Super Bowl, and World Cup. As satellite and cable TV viewership continues to decline, the final barrier between traditional and streaming TV will be broken when one of these major events moves over to one of the "Big 4" over-the-top (OTT) companies (Amazon, Google, Facebook, Apple). These four companies are already major players in the content streaming industry. We expect their dominance to continue and grow in the coming years.

Envision the ability to determine with near-perfect accuracy that a particular consumer has viewed a CTV ad in its entirety and is currently shopping at a mall that houses a retail location of the advertised brand. Now imagine being able to deliver a location-triggered ad, via their smartwatch, offering a discount on their next purchase just as they approach the storefront. Such a level of targeted advertising is nearly achievable today, and with the advancements in timeline, specificity, and accuracy, it will only get better. As a result, your advertising strategy will have to adapt accordingly.

Over the next decade, we will see this movement solidify as big data, machine learning, artificial intelligence, and IOT products continue to advance. Regardless of the changing landscape, there is no question that OTT and CTV advertising will remain relevant.