CTV – One target group, (too) many possibilities

Addressable TV (ATV) is in great demand. The prerequisites for the advertising industry are in place, the market is always more accessible. According to a current study by RTL subsidiary Smartclip, more than 18 million TV sets in Germany are now HbbTV-enabled and can therefore receive addressable advertising. Advertisers can place their digital advertisements in the linear television program both inside and outside the regular commercial breaks with ATV.

ATV platforms, such as the Smartclip solution, analyze – in compliance with data protection regulations after consent – on which devices which program is watched at what time. On this basis, target groups can be modeled and addressed with ATV advertising. For example, based on usage behavior, profiles can be created that represent, for example, male, female and family households. The basis for this is the usage pattern, i.e. which program is consumed on a TV set at what time of day and at what frequency. This can also be combined with digital targeting and identification solutions.

The Smartclip ATV platform enables household-based targeting across all internet-enabled devices – and thus also an extension of TV campaigns in purely digital environments and vice versa. The basis for this is the so-called “household graph”, which determines which devices are connected to one another via a home network. “There is great interest because TV advertisers can use ATV to address viewers in a more granular manner than is possible with traditional TV spots,” says Sebastian Busse, Director Addressable TV International at Smartclip. In this way, for example, all users who regularly watch a certain program or show a certain interest, such as sports, can be targeted on the smart TV. “Using the time stamp, we can see when a spot was delivered and which devices were online on the relevant station at that time. Advertisers can subsequently retarget or exclude these devices, ”explains Busse.

Recently, the inventories of RTL Germany and Seven.One Entertainment also included a programmatic spot exchange within an advertising island. With this mechanism, different advertising spots can be shown to different target groups. Currently, targeting for programmatic spot exchange within a TV advertising island in linear television is still limited to contact class optimization (frequency capping). Further optimization options should be available soon. In principle, ATV advertising can either be booked classically (Insertion Order (I / O)) or programmatically via the D-Force dedicated Active Agent DSP.

While addressable TV is limited to smart TV, the situation with connected TV offers (CTV) is more complex for advertisers. Here the content can be played on the smart TV as well as on other internet-enabled devices. “The targeting options in the CTV depend on the data that is transferred by the respective CTV platform operator. This data can be very different depending on the device, provider and marketer, ”explains Adition Technologies Managing Director Ralf Hammerath. CTV basically offers the same targeting options that marketers know from the digital, programmatic world, but in practice you are still at the very beginning.

Contextual targeting in the context of the marketer’s topic channel as well as regional, socio-demographic and time-based targeting are widespread. Profile-based targeting is (still) problematic in CTV: While one is watching their favorite program in the media library on the smart TV, another uses his tablet, the next a Fire TV stick and another uses his smartphone – all of these Devices have different operating systems and different browser environments. In addition, the device manufacturers often have their own marketing interests. This heterogeneity is a major challenge for CTV, because a stable identifier is required for target group segmentation and targeting.

But there is some initial progress. For example, Joyn can already be booked and controlled across devices. “With Joyn, the identifier is always transferred. Regardless of whether the program is being watched on the smart TV, tablet or smartphone, ”says Hammerath. The situation is not as comfortable with other offers. A household graph can be used to cushion this shortcoming. For example, Adition Technologies also has the option of using the Virtual Minds “Identity Grid” to model various identifiers of a household into a household profile and to address this. However, a household graph can only be created if minimum requirements such as IP address, device ID and app ID are submitted with the respective bid request in compliance with data protection regulations. “The more data that is transferred, the more granular can be programmatically targeting,” says Hammerath. However, most of the CTV apps do not yet provide information on the station and content category. Strategic reasons are also likely to play a role. Broadcaster CTV is also in direct competition with traditional TV, and the broadcasters have to think very carefully about what information they are disclosing without running the risk of cannibalizing the channels.

As a result, there is a mixture of the old AGF and the new programmatic world for CTV purchases. In many cases, the CTV has to plan with affinities and the experiences of the TV buyers media. It is still a widespread use case today to book TV advertising in the classic way and to include the CTV offers of the relevant station. But there are the first pure CTV campaigns. For example, last year Deutsche Bank ran a CTV branding campaign on RTL Plus and Joyn via Active Agent DSP – with cross-marketer-wide contact class optimization.

In the future, the same targeting and control options should be possible in the CTV as we are used to from programmatic advertising today. “But neither broadcasters nor agencies yet assign the new options to TV advertising or digital marketing in a uniform manner,” says Hammerath. It would therefore be helpful if advertisers insisted that CTV providers submit enough data so that better programmatic targeting for CTV campaigns becomes feasible.

On the agency side, the topic is approached pragmatically. For the video marketing agency Videobeat, for example, CTV bookings from app publishers on smart TVs have so far hardly played a role. Rather, the video specialists focus on linear TV and book campaigns for their customers on addressable TV and in broadcasters’ streaming offers, which are also used via smart TV. Usually the agency books ATV based on socio-demographic characteristics. “Using targeting always makes sense when I have a very specific target group and want to avoid wastage,” says Dirk Jakobson, Managing Partner, Videobeat. But the inventory is scarce. “ATV is comparatively expensive because the interest is high and the availability is low. The situation is exacerbated by the increased demand in linear TV, ”said the expert. In the current situation, booking on classic TV may even be the better choice. “Then the targeting is missing, but the booking is sometimes cheaper in the CPM and the range is higher. This has to be weighed up on a case-by-case basis, ”says Jakobson.

There is still a lot to do behind the scenes so that linear and digital merge into the medium that has long been for viewers: television. No more and no less.

Leave a Reply

Your email address will not be published. Required fields are marked *