How the CTV home screen becomes a discovery hub

In the advertising world, everything revolves around attention. To achieve this, advertising must reach the right target groups. Digital TV advertising has come a long way compared to traditional TV advertising. Nevertheless, there are also differences within digital advertising formats. Marketers should pay particular attention to the home screen on CTV devices in their campaigns.

Figuratively speaking, the home screen within internet-enabled TV devices, such as the user interfaces of smart TVs, makes it possible to get an ad slot "on the remote" - in the place that draws full attention during program selection.

Our CTV analyses between 2017 and 2022 show that weekly, regular and daily usage almost doubled during this period. This increase has been further accelerated by the COVID-19 pandemic and the associated increase in media consumption at home, which has established CTV in the breadth of advertising-relevant target groups.

These changes in TV consumption behavior are the result of several key factors. The availability of on-demand content allows viewers to watch their favorite programs when it suits them best. The introduction of streaming services has created unprecedented access to content, from movies to TV series, from documentaries to live sporting events. Compared to traditional linear TV, CTV offers the flexibility to select and watch content individually without being tied to fixed broadcast times.

The home screen is therefore becoming increasingly important for the marketing of moving image advertising. This is not only due to the rapid spread of smart devices, but also to changes in media usage behavior.

What is the main advantage of this home screen?

Many streaming providers personalize the home screen by default based on viewers' preferences and behavior. These recommendation systems can also be used by advertisers, especially through targeted targeting using first-party data collected by OTT platforms and streaming providers, along with viewer behavior and context. This enables precise targeting of advertising messages.

As ad impressions are mainly generated on ad-financed streaming platforms, where viewer accreditation is often not required, first-party data is not always available. Nevertheless, there are providers such as OTT platforms and streaming apps that generate relevant data for marketing, as viewers have to authenticate themselves for the service. Information is derived from data such as the type of payment, technical details, contextual information and socio-demographic data.

An example of this is Waipu.tv, which requires viewers to register in order to access all services. In contrast, Rlaxx.tv is free to use and does not require prior registration. These streaming services therefore offer different targeting options.

The quality of targeting in CTV: a challenge in the context of the "device-centric approach"

One of the biggest challenges in the field of connected TV is the quality of targeting. Unlike most digital advertising environments, CTV is a one-to-many medium where content is delivered to multiple viewers. From our own surveys, we know that on average 2.1 viewers sit together in front of the TV. This special feature requires a differentiated approach compared to one-to-one or user-centered strategies, in which advertising is delivered directly to individual users.

In the CTV environment, the "device-centric" approach comes to the fore. This means that advertising is not tailored to specific people, but to the respective playback devices. These devices provide some useful information such as technical data and interests - features that can be used to improve targeting. Streaming services that require viewers to authenticate themselves have a clear advantage in this context. When viewers have to authenticate with a service to access content, more complete viewer profiles are created. This makes targeting much more precise, as the behavior and preferences of individual users can be accessed. This enables personalized recommendations and advertising that is better tailored to viewers' interests.

The advantage of targeting in CTV over traditional linear television is its precision and efficiency. While linear television broadcasts advertising to a wide audience without taking into account the individual preferences of viewers, CTV offers the opportunity to target advertising based on the data and profiles collected. This leads to greater relevance of advertising messages and better interaction with viewers.

In addition, in the CTV sector it is not only possible to broadcast banners, but also video ads on the home screen. This combination of visual formats enables deeper viewer engagement and creates a more interactive advertising experience, as well as better performance measurement and analysis. Advertisers can track exactly how their ads are performing on the individual platforms where the ads are running, which audiences are most engaged and which content is most popular. They receive detailed information on reach, viewability, VTR/VCR, ad engagement and conversion tracking. This measurability allows them to analyze the effectiveness of their advertising campaigns and make adjustments as needed to achieve better results.

In summary, CTV offers advertisers the ability to run highly accurate and efficient advertising campaigns using different visual formats. This approach is revolutionizing the way advertising is used on TV, leading to better targeting and ultimately increased advertising success.

Conclusion

The transformation of the home screen of CTV devices into a "discovery hub" has significant implications for advertisers' approach. Increasing use of CTV, changing TV consumption patterns and the possibility of personalized targeting offer enormous potential. The future of TV advertising lies in CTV and the home screen is at the heart of this new era.

Advertisers who capitalize on the opportunities of the CTV home screen can not only target their audiences, but also build an effective brand presence. Through the intelligent use of data, creative approaches and a clear strategy, they can capture viewers' attention and activate them. Now is the time to recognize and take advantage of these developments. Those who act now can take full advantage of this emerging medium. Through clever personalization and a clear strategy, advertisers can operate successfully in this changing landscape and benefit from the opportunities of CTV.