‘CTV will continue to see growth because consumption from the consumer is exploding’
At the recently concluded, 2024 Cannes Lions International Festival of Creativity, Teads, an omnichannel ad monetization platform, launched its new proposition, “Teads - Best In Glass Advertising.” Speaking exclusively to exchange4media Group Natalie Bastian, Global CMO, Teads says, “The term glass has become synonymous, in the CTV space, and is used interchangeably with the word screen. When you look at a smart TV, the screen is made of glass and that is a huge selling point from a consumer perspective. In the advertising space, it has become popular to describe what you see behind the glass, which is entertainment and who is in front of the glass, which is the audience and the consumer. So, for Teads we launched this proposition in Cannes to really illustrate what we are doing to be best-in-class in glass not only in CTV but across the mobile web as well which obviously on your phone has the glass as well.” Looking at the growth of CTV, as per the This Year Next Year 2024 Global Midyear forecast report by GroupM, it is estimated that CTV ad revenue to total $38.3 billion in 2024 and it is predicted 2024 CTV ad revenue will grow 20.1%, up from 16.1% in 2023, with a further 17.6% increase in 2025. Commenting on the factors behind the explosive growth in the CTV space, Bastian says that growth is exploding from an investment standpoint and this has been seen across markets such as the US. She explains, “The reason why we will continue to see growth is because the consumption from the consumer is exploding. First comes the consumer and then comes the advertising.” Elaborating on the reasons for this growth she highlights about the quality of the entertainment on the screening landscape. Another factor is the cost of cable and the access to certain types of content has become unreasonable for some consumers, leading them to turn to streaming to have more choice where they can pick and choose the platforms they want. She adds, “The access to this quality content has grown because of all of the entertainment companies and studios that are investing in putting premium content in the streaming landscape. Once you have the consumption, advertisers are wanting to reach those consumers and more and more premium models like Netflix and Hulu (earlier) are building ad-supported models within their premium offering. So, one this is going to grow their viewership because it is giving access to consumers who may not want to pay that original premium bundle. They can now pay and see the content with some ads. So, that gives more access to more audiences and more ad avails for investment to come in.”
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Coming to India, as per the TYNY report, in 2024 CTV will account for 11.3% of TV advertising revenue, but with a five-year CAGR of 26.7%, that share is expected to rise to 24.9% by 2029. Commenting on the shift in India from linear TV to CTV, Bastian says that India is following the global model where the eyeballs are shifting to the platform which serves quality content.
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Talking on the critical aspect of measurement which along with advertising capability will fuel advertising investments and also help brands and agencies determine how much they should spend on this space. She says, “Inherently, it is intuitive that consumers are going to CTV but if we can’t prove and measure it, then how do we know that the ad works. So, measurement is crucial.” She continues, “There are a few things from a brand and agency standpoint that are fundamental to justify an investment. One is understanding the amount of reach that you are getting, and the understanding of unique reach - that incremental reach is absolutely fundamental.” She explains further that if a brand has an audience it reaches on Linear TV and also on CTV, it looks and assesses for the duplication in audience on both platforms and also the incremental audience. She says, “For example, a brand that is traditionally on Linear and has now added 20% reach by adding investment on CTV. If out of this 20%, 10% of that is incremental reach to the linear investment then they can need to increase their investment on an average by a certain %, making the advertising more feasible.” However, Bastian says that in reality, things are not as straight forward. She says, “At a country-level, there are not uniform ways to measure and platforms are choosing and building tools and resources, (agencies as well), to accommodate some of that. This is creating much fragmentation in this space, making it difficult for brands to seamlessly invest across different platforms. We have made progress across the board but there is a lot more work to be done.” Talking about Teads’ latest advancement - Teads OG – the next generation omnichannel contextual and Identity Graph, Bastian says that Teads is rooted in premium open web and this allows Teads access to deep contextual data set with direct access to the world’s largest publishers. In addition, the code-on page gives contextual signals, graphs and maps to different audience sets to help targeting and measurement in the open web. She adds, “We took this capability and can do it (replicate) across CTV allowing us to have an omnichannel view of audiences because of the data inputs that we are getting from OEMs such as Samsung, LG etc. We are able to create further data mapping to help us understand contextual signals.” Citing an example, she says if a brand would like a mass reach for an audience that is watching sports, Teads OG can identify who is watching sports and then pair it with the audience that is reading about sports on the open web, thereby extending the mass reach. Sharing a niche example, Bastian talks about the premium brand Nespresso Coffee and its brand ambassador George Clooney. She says if Nespresso wants to run an ad served with content that Clooney features in, Teads can reach and target readers and users to help draw a close association to the brand.
Tags : Teads Ctv Digital Natalie Bastian