Last week, we hosted a lunch and learn with three powerhouses from across the programmatic advertising industry—Blake Simon, Senior Director of Business Development at The Trade Desk, Joe Hotagua, Digital Media Strategist (Advanced TV) at Hulu and Priya Kapoor, Point It’s Senior Programmatic Campaign Manager. Over the course of the session, they helped us dig deeper into connected television as an additional media option for advertisers.
Although this was our first in-person event about CTV, it’s a topic Priya has been exploring on our blog with the article Programmatic TV a missed opportunity for brands and with many of her clients running digital programs.
We crafted this hand-picked panel carefully, to provide attendees with a well-rounded discussion on getting started with Programmatic TV
- Blake Simon, Senior Director of Business Development at The Trade Desk, spoke about the transition to CTV in the programmatic industry, including inventory types offered through CTV devices, as well audience targeting, performance measurement, and cross-device targeting.
- Joe Hotagua, Digital Media Strategist (Advanced TV) at Hulu, touched on Hulu’s increased role in the programmatic space with CTV inventory, Hulu’s ability to layer in data/audience targeting, and why they’ve been branding their product as Advanced TV.
- Priya Kapoor, Senior Programmatic Campaign Manager at Point It shared Connected TV campaign strategy recommendations, cohesively running CTV with a display campaign, and how to measure the impact of Connected TV on your brand or product.
Interested in learning more about Programmatic TV? Check out the video from the event, or read on for a comprehensive summary of the conversation.
What is Programmatic?
Blake from the Trade Desk defines programmatic media buying as, “[it’s] the process of buying media in a fashion through digital platforms.” Unlike traditional buying where there’s an insertion order in a very manual process, all programmatic buying is done via automation. Then there’s a real-time auction very similar to how financial stocks are traded today. But what you really need to know about programmatic, Blake says, is that “it really gives the advertiser or the buyer the power to choose what impressions they want as opposed to the publisher.”
What is CTV?
Connected TV is any device that you use to watch your TV shows. You can use your phone, your iPad, your desktop, or you can also use a smart TV like a Roku or an Apple TV to stream any shows that you want to watch. On the marketing side of things, the advantage of advertising on connected TV is you’re able to layer on audience data because it is being streamed through an IP address. That’s what makes CTV so powerful.
Why use CTV to advertise?
With the ability to target your audience, you’re able to focus on targeting an individual instead of a full household. Priya Kapoor explained that one of the big changes we’re running into is the shift from single TV homes to multiple personal entertainment devices in a home. “Prior to the explosion of individual devices, everyone that was served a TV ad received it in the household. You have the parents with buying power watching the refrigerator commercial, but their teenage children were exposed to that same commercial.”
One might argue that this is an opportunity for a long brand play, but most brands are looking for a shorter more targeted approach to their advertising dollars. With Connected TV, we can focus on the individual viewer. We know their likes, dislikes and behavioral characteristics. This allows us, as advertisers, to target the decision maker who is actually in the market to buy a refrigerator.
- Over a five year trend, you’ll see that TV ratings are consistently declining, which makes the optimal market penetration harder to achieve.
- Simultaneously you’re seeing connected devices, ratings, viewership, and consumption increase, which is why Connected TVs can really be a great way to enhance that market reach, especially as it becomes a more normative behavior.
- As connected devices increase, we’re also seeing streaming video on demand increase as well. 76% of Millennials currently streaming on demand tv.
- GenX and Baby Boomers also see consistent increase in online streaming because connected TV watching is becoming more accessible and online platforms are becoming content providers, not just hosts.
- Hulu is seeing almost 80% of this streaming happen on Connected TVs with less happening on desktop computers or laptops.
- Hulu’s unique median age is 31, traditional TV broadcast is 55, cable is 48, and DVR is 43.
CTV Advertising Benefits
Although there’s already a clear case for adding CTV advertising to your market mix, the tangible benefits start to emerge when you look closer. You’re able to create a user experience based on how audiences are interacting with your message or brand. This builds overall brand trust, added exposure, and a cross-channel experience that will help drive top-of-funnel customers to your products and services.
When you create Connected TV ads, you are building a video content library. When done right, this hot content format drives conversion through funnel optimization. And thanks to IP address tracking tactics, you’re also able to collect behavioral information about your customer to increase your understanding of their buying habits.
Choosing Hulu as a Connected TV Channel
Hulu as a publisher offers Advanced TV, and its chief advantages are the number of challenges it addresses: They tackle brand safety and fraud, manage service to audience volume, and provide inventory access.
As platforms develop and grow, the goal for all of them is to offer audience insights to allow for more effective targeting, which leads to delivering the right ad to the right user at the right time and of course, on the right device. Here are a few insights that Joe Hotagua from Hulu shared about what makes their platform a good fit for programmatic buyers:
- The lack of third-party intervention and markup helps the Hulu team control the quality of the ads served
- Hulu’s Advanced TV competes directly with the direct buy. They have their own ad system and ad server. Hulu has the ability to control what inventory is available within different product offerings. With Advanced TV they have the same inventory available to buyers who are buying programmatically through the Advanced TV offering as well as people buying through direct buys
- Hulu offers a number of different measurement options and boasts over 93% view-throughs—significantly higher than the industry standard
Hulu has DMP Oracle to allow for buyers who use cookie data to make data-driven decisions and purchases
- Hulu has a relationship with Axiom for advertisers who use offline data to better target their audience
To sum up
Ultimately, it seems that not using Connected TV as an advertising strategy is a clear miss if you’re looking to reach the growing population of cord cutters, engage highly-targeted users, and measure engagement metrics of your TV campaign for the first time.
If you missed our event, not to worry, the complete video is below. Grab a conference room and invite your team to watch the full video where we chronicle the expertise that Hulu, The Trade Desk, and our very own programmatic expert shared with us.
Curious about the effectiveness of programmatic advertising as a whole? Take a look at one of our client success stories!