Connected TVs are slowly becoming more popular and less of an option to go without. There are endless ways for people to get connect through a Smart TV, Apple TV, Playstation, Blu–ray player and on and on. As more applications are released across these devices, RTB becomes relevant way to target connected TV users.
Tremor Video released a study on consumer’s connected TV preferences and viewing habits. The study shows trends of people increasing the amount of time they spend on their Connected TV vs other video viewing devices like smart phones and tablets.
Let’s face it right now, the ads aren’t great. I see the same ad on Hulu 15 times in a row for a month straight and it has absolutely nothing to do with me or anyone in my house. Currently, the majority of advertising on these applications are done by category targeting based on the show or video that is playing, which is relevant, but not long lasting as soon as the user goes to another category or app. The growth of RTB in this space would allow an advertiser to follow a particular user through all the applications based targeted data from their viewing and online habits. For example, Advertiser A could follow a user from when they watched a TV show on Hulu Plus, to a You Tube clip, then over to Pandora with a display ad and so on and so on.
On the flip side, the emergence of RTB on connected TV would lead to higher revenue for these apps. The Tremor study found that advertisers are missing the value of Connected TV ads. The ad format on the majority of these apps are 15 to 30 second videos that are hard to ignore, which makes it such a high quality ad spot. It’s too short of a time period to walk away, you can’t change the channel during it and if it’s relevant to the user, even better. RTB could be a good way to get their attention and drive up CPMs as the ad space is less frequency and the users are more engaged with the application than they are on display or other device’s video.
In addition to advertising opportunities, there a play for data in Connected TV. It allows data companies & bidders to collect data and build out user profiles based on TV preferences per IP address, which in turn helps advertisers know more about a user and target more effectively.
Connected TV is a prime space for RTB to get involved, collect data and expand advertisers reach. As the RTB industry grows it I’m interested to see what it can do with Connected TVs.