The COVID-19 pandemic significantly transformed people’s lives around the world. Since the quarantine regime is imposed, most people are isolated in their homes. From an online advertising business perspective, this means a remarkable target audience migration. There are diverse digital advertising channels and some of them are designed principally for outdoor audiences. For instance, Digital out of home (DOOH) via interactive displays on the streets, in the malls, bus stops, or, mobile in-game advertising for those people who are killing the time playing a favorite game on their way to work.
Today, these prospects are anchored to their homes where television is one of the key entertainment sources. With this, CTV (Connected television) & OTT (Over the Top) is the major beneficiary within the new realities of the ad tech industry. Connected TV and streaming services have been gaining momentum for the last decade attracting more and more users and the pandemic has extended this pool even more.
People are already used to watching desirable content in a high-quality on-demand.
Advanced television offers an unlimited access to omnifarious TV shows, series, movies providing engaging content to any audience segments. There are two basic business models within CTV & OTT which are Ad-based Video on Demand (AVOD ) and Subscription Video on Demand (SVOD). As the names suggest, the SVOD model implies a subscription fee, while the AVOD one is absolutely free due to advertising enabled. As COVID-19 has also affected the financial life of people and they’ve tightened the belts, the AVOD is a sought-after model nowadays.
Digital TV advertising is a valuable monetization source for publishers. Basically, it’s the only financial reward for the content they’re producing. Online advertising is a tough business that requires a clear strategy. And the key to success in monetization is a partnership with a reliable tech vendor that is able to provide smart and efficient advertising solutions for publishers.
For instance, TheViewPoint (TVP), an all-in-one SaaS revenue optimization platform, supplies CTV publishers with diverse creative formats, including QR code ads. Creatives library matters as different advertisers have different formats of messages, so publisher has to be able to support each of them. Yet, a crucial aspect when choosing a partner and a publisher should pay attention to, if the tech vendor provides direct access to advertisers. Direct gateway to brand demand means an absence of middlemen within a supply chain, which is why business goes in a cost-effective and transparent manner. Private marketplace deals allow content owners to get the most of their inventory in terms of revenue.
As to brands, they’re also resorting to CTV & OTT advertising more actively, considering the benefits of this channel. Unlike traditional cable TV, where the audience is watching the same advertisements, digital television shows impressions on a targeted basis powered by programmatic algorithms. With this, brands reach out to relevant audiences and get great ROIs.
To Sum It Up
Today’s isolation has locked people down at their homes and television became one of the main entertainment sources. It’s constantly getting harder to attract and retain users’ attention as their requirements for the services they consume are high. However, advanced TV faces these challenges worthily. While people are clustering around digital TV screens, the ad tech players can seize the opportunity. Publishers are able to drive income via selling ad spots to premium brands for a competitive price. Advertisers, in turn, increase their sales by engaging relevant audiences across multiple screens. The recipe for success here for both, demand and supply sides, is to cooperate with a trustworthy tech vendor, such as TVP who offers the best of the private marketplace for both sides to achieve their business goals.