Media Spotlight: Navigating the Streaming World

What is CTV?

Connected Television (CTV) is any internet-connected device used to watch TV or video content. Examples of CTV devices include smart TVs (Samsung, Vizio, LG, etc.), gaming consoles (Xbox, Playstation, etc.) and internet connected devices (Amazon Fire Sticks, Rokus, Apple TVs, etc.). Over-the-top (OTT), often used interchangeably with CTV, is the delivery mechanism of video content. Examples include Hulu, Netflix, Amazon Prime, Discovery+, etc. Streaming refers to the act of viewing content digitally via CTV devices.

NIELSEN SOON TO INCLUDE BBO HOMES

Beginning in 2022, Nielsen will be including Broadband Only Homes (BBO Homes) into their TV universe to account for the “cord-cutting” phenomenon amongst TV viewers. BBO homes are households that only watch broadcast television through an internet connection — only services that have local broadcast access will be included. It is estimated that approx. 30% of all US TV HHs are BBO HHs. Because of the addition of BBO homes, Nielsen HH universes are increasing across all markets, so TV buyers can anticipate ratings to decline while overall impressions will increase.

HH statistic sourced from S&P Global Market Intelligence, Q2 2020

3 Categories of CTV/OTT Inventory:

1DEVICES

Smart TVs, Gaming Consoles, Tablets and Smartphones
e.g., Samsung, Vizio, LG, Roku, XBOX, etc.

2SERVICES

MVPDs (multichannel video programming distributors), OTT Services, SVOD (subscription video on-demand), TVOD (transactional video on demand), AVOD (transactional video on demand) and TVE Apps
e.g., Hulu, Fubo, Sling, Tubi, Netflix

3CONTENT PROVIDERS

Content providers facilitate content for a particular network/distribution service
e.g., Hulu, Netflix, HBO Now, Paramount+

The CTV landscape continues to see tremendous growth

75MM

Addressable CTV HHs

$4.5B

2021 CTV upfront TV spend

80%

US A18-34 stream at least one hour of TV a week

WHAT IS ACR DATA?

Automated content recognition, commonly referred to as ACR, is the process in which Smart TV’s identify the content that viewers are watching, by matching snippets of content against a reference library of videos. Although ACR data is not new to the CTV landscape, since 2019, the number of ACR enabled Households has grown exponentially.

In early 2020, Roku placed their ACR equip operating system into 1 in 3 Smart TVs sold in the US. In addition, Samsung, with the largest market share of CTVs across the US (33%), estimates their ACR data reaches approx. 50MM US households. In May of 2021, LG Ads launched as a strategic partnership between LG and Alphonso bringing LG’s Smart TV ad inventory to market with Alphonso’s ACR data for targeting and measurement.

As the CTV landscape continues to grow into the forefront of video buys, 1st-party ACR data will be a crucial tool within any CTV buy.

Source: AdExchanger, MediaPost, BusinessWire

HULU CONTINUES TO GAIN SUBSCRIBERS, SURPASSES 100MM

Top streaming service, Hulu, has seen a +67% growth in subscribers over the last two years. For the first time ever, the total ad-supported viewers for Hulu surpassed 100MM. Against A18-34, Hulu’s reach is #1, ahead of CBS, NBC, ABC and Fox.

Source: Hulu

 

DAVIS ELEN’S TRAILBLAZING

APPROACH TO THE CONNECTED TELEVISION ECOSYSTEM

DID YOU KNOW?
Innovid estimates the average publisher Unique Reach Percentage is 68%

TESTING OUR HYPOTHESIS

As consumers spend more time watching streaming video content, Davis Elen recognized the need to efficiently approach the video landscape for our clients. Our goal was to reach more CTV HHs, for less client media spend.

We leveraged Innovid’s CTV Insights reporting to reinvent our approach to the CTV market.

CTV Insights provided:

• Unbiased perspective of campaign delivery

• Deterministic data methodology through Innovid device IDs

• Household-level reach and frequency analysis

UNIQUE APPROACH

Using Unique Reach % as the key performance indicator we partnered with two categories of CTV providers:

DEVICES
i.e. Samsung, LG Ads, Vizio, Roku, etc.

SERVICES
i.e. Hulu, Paramount+, NBCU, etc.

We prioritized device partners across designated test campaigns, purchasing owned and operated inventory only. Device partners were prioritized because we believed they have the largest unique scale at a local level.

Service partners were then added to extend scale – with device partners utilizing ACR data to suppress overlap between themselves and service partners.

Results

MORE UNIQUE HOUSEHOLDS REACHED, LESS CLIENT MEDIA SPEND WASTED

+7%

UNIQUE REACH %

-35%

COST PER UNIQUE REACH (HH)

95%

AVERAGE CAMPAIGN UNIQUE REACH %

Next Steps

Based on a tremendous amount of success, all streaming video plans executed by Davis Elen will prioritize device partners (Samsung, Vizio, LG, Roku, etc.), while adding service partners (Hulu, Paramount+, etc.) to extend reach when necessary. This new strategy, backed by data, will focus on both extending HH reach and minimizing overlap / waste for all DE clients.

Ready to take your streaming video approach to the next level? Send us a note to the contact info below.

MEDIA
John Papadopoulos
SVP, Director of Media Strategy
johnpapadopoulos@daviselen.com

NEW BUSINESS
Debbie Zimmerman
SVP, Account Director
debbiezimmerman@daviselen.com