Streaming TV business model changes, shoppable ads, generative AI, and a stronger push for collaboration will reshape next year’s advertising landscape. Here’s how.

Ad spending roared back in the latter half of this year, indicating that there will be a healthy start to 2024. Yet, as ads proliferate, frustrated consumers have erupted with a collective “Enough!”  

As consumers take more control over their media use and consumption, there is a clear dynamic marketers and publishers cannot ignore: more than ever before, they need to attract audiences with relevant, engaging  experiences – including both content and advertising. Yet easier said than done in a world of fragmented viewing, increased privacy restrictions, and wholesale shifts in how people pay for and consume television. 

Pulling consumers in is especially important in the streaming TV space, where viewership is soaring. From May 2022 to May 2023, there was a 20% surge in total CTV usage, with viewership  jumping from 9.6 billion hours to 11.5 billion, according to Comscore. Not to mention the latest news from the  Netflix Engagement Report, revealing that viewers spent 100 billion hours on that streaming service alone. 

Although that’s all great news for our industry, our focus should be on new research from Parks Associates that the churn rate for streaming TV subscriptions stands at 47%. Many consumers cite cost; others say that they’re cutting subscriptions once a favorite TV show or season of a sport they follow is over, but regardless of the reasoning there’s no doubt that consumers are in control. Publishers and marketers need to align on putting the consumer first – and that means being ready, in lockstep, for what’s next. Here’s what the industry can expect in the year ahead. 

Prediction 1: Attention Metrics Take Center Stage  

This will be of no surprise to anyone reading this: People are bombarded with hundreds if not thousands of ads each day – and the vast majority of them likely don’t “stick.” Our responsibility as an industry must be the creation of better experiences, so that ads can be rewarded with true consumer attention. To succeed in 2024, advertisers would do well to embrace the Attention Economy but only if they fully understand what type of attention works best for their brand/KPI. If they don’t, their relevance and performance will suffer.  

Enter attention metrics. More than 90% of marketing professionals believe metrics that measure attention will soon augment legacy standards – like reach & frequency, impressions, and page views – if not replace them altogether. That’s according to a survey issued by The Attention Council (TAC), an organization composed of researchers, agencies, publishers, and holding companies focused on improving advertising-related outcomes. (Infillion is proud to be a member.)

Nearly 9 in 10 respondents to the TAC survey identified several promising use cases for attention metrics: media optimization (75%), measurement (67%), creative testing and optimization (64%), and planning (54%) as the most likely to successfully employ attention driven signals. 

That said, there’s more work to be done. Attention metrics’ utility isn’t set in stone, and 2024 will see significant moves in attempting to solidify them. Advertising Research Foundation is currently working on an “Attention Atlas,” which, as Adweek reported, will outline vendor positioning, methods, and deliverables so that brands can make more informed choices when exploring new partnerships. The Atlas was initiated to give brands and agencies access to greater insights as the slow death of third-party tracking cookies diminish the online signals marketers have relied so heavily on for the last two decades. 

Prediction 2: Shoppable Ads Go Mainstream

The past year has seen a tidal wave of shoppable ad announcements. Innovators like Kerv, Disney, NBCU, and Roku have revolutionized how viewers interact with content, turning passive watching into active shopping experiences. In the not too distant future, this shopping process is expected to become even more seamless, allowing purchases to be transacted with a click of a button.

We witness the rise of shoppable ads firsthand at Infillion every day. We launched ShopX, a shoppable solution for streaming video that allows viewers to add products directly to their carts at a selection of retailers, in May of 2022. By the end of the year we’d run a campaign in which over $1B worth of a single product was added to users’ carts.

That all represents a massive change in consumer behavior.

In 2024, shoppable ads will become the answer   for brands looking to engage consumers in “never been done before” ways, empowering innovation in a space that has been stagnant for decades… All eyes will be on the  retail media networks Amazon, Walmart, Target, Albertsons, and others to see how this trend potentially disrupts, in a good way, traditional ecommerce opportunities.

Prediction 3: Cross-Platform Measurement Gets More Intelligent — and Actionable 

Unfortunately, as streaming TV has taken center stage among viewers, the fragmentation in the marketplace has only gotten worse. The slow adoption of partnership across publishers, advertisers, operating systems, and devices is hindering ad innovation and scalability even as the demand for such solutions is becoming more urgent. 

As subscription growth has slowed for many publishers and churn has increased, the need to establish effective ad-supported options that don’t alienate audiences is a must solve for all streamers. Audiences have shown they’re “leaned in”. But this can’t be done unless there are effective partnerships, and the willingness to co-mingle tech reducing publisher burden across the industry.

Case in point, in 2020, technological advancements like the IAB’s SIMID technology, which promotes interoperability across platforms, never scaled. Today, in 2024, there is a revitalization in the format to make cross-platform interactive advertising from mobile to CTV more scalable and measurable. Without SIMID, ad tech innovators are forced to negotiate/integrate platform by platform, publisher to publisher causing universes of “walled gardens” within what’s supposed to be the open internet.

Prediction 4: Increased Scrutiny – and Potential Regulation – of AI Used In Content and Ads. 

As much as all major industries — along with a growing segment of consumers — are experimenting with generative AI, the advance of this technology has also been accompanied by fear and backlash. Concerns among advertising professionals that they’ll be replaced by machines is understandable, if only because AI is opening up completely new arenas for everyone from artists to analysts to technicians. 

As it relates to creativity, and our industry, that fear was a large sticking point in the drawn out “Hollywood Double Strike,” as the writers’ and actors’ unions fought the studios over the role of AI models in all facets of TV and movie production. As for advertising specifically, platforms have begun to flag political ads created with AI, seeking to maintain transparency in the digital ecosystem.

Both government and corporate regulatory measures that address AI are inevitable; the European Union has already agreed on its AI Act. It’s likely that – among other things – these measures separate genuine, professional uses of AI in creation from bottom-feeding attempts to leverage these platforms for quick gain. Even if regulators don’t take down bad actors, consumers will prize authenticity above all. 

It’s also crucial for the different siloes of the advertising industry to align on how AI can be helpful versus harmful to the industry. New research from Borrell Associates found that while both direct buyers and agencies are interested in the use of AI for content creation and optimization, agencies are more interested in predictive analytics and campaign planning. Agencies are also far more likely (70%) than direct buyers (43%) to already be using generative AI or to be planning to do so. These discrepancies in how AI is prioritized and deployed can cause friction when it comes to bigger-picture issues, like sustainability, and the environmental impact that all the processor power of generative AI is adding on to an already energy-intensive digital advertising industry. But when done well – and done mindfully –  generative AI can open up a renaissance in creativity. And that’s what it will take to gain meaningful attention, engagement, and loyalty from a brand’s audience.

There’s a lot ahead for streaming in 2024, given how much 2023 revealed some of the industry’s most pressing voids and disconnects. From subscriber churn to frustration over a lack of scalability, it’s evident that 2024’s biggest trends are going to point to the need to further work across departments, companies, and historic “siloes” of the business. After all, consumers are now in charge, and the answer for the industry is going to lie in unified progress rather than further fragmentation.

How do our 2024 predictions match with your own? Are there any we missed? Click here to reach out and let’s get a conversation started!

With millions of consumers cutting the cord (and loving it), more brands are doubling down on CTV advertising. In fact, 98% of brands believe that CTV advertising will be bigger than mobile. About 25% of companies believe it will only take 2-3 years to reach that point. In the meantime, companies need to decide whether now is the right time to move forward with a CTV ad strategy. Here are some questions to guide you in the right direction.

How much control do you want over your ads?

One of CTV advertising’s greatest advantages is the level of precision targeting it offers. Rather than sharing a mass message with millions of TV viewers at the same time, brands can gain more control over where, how often, and to whom their ads are shown. Narrow your focus on households or viewers of a certain geographic location, income range, viewing habits, interests, or other factors. Targeting gives you a better chance of showing your ads to the people who will most likely want to see them.

How important is real-time reporting?

Traditional TV advertising is a monster to measure. Learning the impact of a TV campaign is often a long and daunting process that can take weeks to collect, analyze, and report on the data. 

CTV advertising offers almost real-time insights on reach, brand lift, completed views, and engagement. At any given time, you can check the data to see how your campaign is progressing. This lets you adjust your spending, tweak your creative, or make other impactful changes before your ad budget runs out.

Do you prefer low-lift ad optimization?

Remember the “old days” of manually figuring out bids and placements? CTV ads have largely automated this process, allowing you to skip the typical hassles of media buying. Automation bridges the gaps between inventory quality, costs, and your business goals. This is made possible largely due to the availability of real-time data, which helps ensure your campaigns reach peak efficiency.

However, if you prefer more control over your placements and bids, then CTV ads might not be right for you.

Where do you most want to be seen?

CTV focuses on streaming services, such as Hulu and Amazon. This means that advertisers are left out of primetime shows, news, sporting events, and other content found on mainstream TV. However, the tradeoff is that there’s plenty of content available for streaming that isn’t shown on cable or satellite. It’s up to you to decide where you want to be seen.

Find Out If CTV Ads Are Right for You

Going all in on a CTV ad strategy just because everyone else is doing it isn’t the best reason to move forward. But learning about CTV’s advantages now can give you ample time to perfect your approach before it blows up even bigger. At Infillion, we’ve designed our suite of CTV technology to help you develop, measure, and improve your CTV advertising with ease. Contact us today to learn more, or visit our blog to explore more of the CTV landscape.

Connected TV (CTV) is turning traditional television advertising on its head, allowing more brands and businesses to tap into the benefits of meeting audiences on their couches. As more consumers are cutting the cord in favor of streaming options, CTV creates new opportunities to connect with target customers in a way that’s actually welcomed by viewers. 

Let’s explore the benefits of CTV advertising and why it belongs in your strategy for 2023.

CTV Advertising Has a Massive Reach

If you’re looking for a way to reach a large audience with your marketing message, CTV advertising is definitely worth considering. CTV devices are in nearly 80% of U.S. households, and that number is only going to rise.

People are spending more time than ever streaming content on their TVs, with the average American now watching eight hours of video per day. It’s the perfect place to make an introduction and build top-of-mind awareness.

It Offers Precision Targeting

One of the key benefits of CTV advertising is that it offers a level of precision that linear TV can’t match. Rather than aiming for mass marketing messages hoping you reach some of your target audience, CTV advertising makes it easy to split up your ads and programmatically connect with profiles that fit your criteria.

Successful advertising is no longer just a numbers game. It’s about expanding your presence to the right people, and CTV takes the guesswork out of showing your ad content to the people you want to reach.

You Get Measurements and Reporting That Linear TV Doesn’t Offer

Another benefit of CTV advertising that traditional TV can’t touch is that brands no longer need huge performance reports to gauge the effectiveness of their campaigns. CTV offers more data and more ways to measure your impact almost in real-time so you can make adjustments as needed.

Track both online and offline sales with confidence and see how ads tie into your omnichannel strategy. Infillion provides this data infrastructure on your behalf, sending you straight to the insights.

It Aligns with the Cookieless Future

Cookies are going away, leaving marketers scratching their heads as to how they can collect data on their audiences. With CTV, data collection is done for you, no cookies required. CTV relies on hard data like IP addresses, device IDs, and similar first-party data. This helps advertisers target individuals and households and supply contextually relevant content.

It’s Cost-Efficient and Effective

Traditional TV advertising has historically been out of reach for smaller brands with smaller budgets. Advertisers would have to invest tens or hundreds of thousands of dollars in a national ad campaign, and targeting wasn’t nearly as precise.

CTV changes things, giving smaller businesses a chance to compete on a level playing field. There are lots of ways brands can choose to pay for CTV advertising, such as cost per 1,000 impressions or cost per completed view. What’s more, you’re not just limited to one network or channel. This helps you get in front of even more people in a targeted, affordable way.

Get Started with CTV Advertising!

Ready to put these and other benefits of CTV advertising to work for you? Contact us today to learn how.

More and more people are loving content streaming. They’re breaking up with cable companies in favor of the on-demand ecosystem. While this initially put brands and advertisers out of touch with streaming TV viewers, CTV advertising is helping bridge these gaps once again. Here’s why CTV advertising is all the rage and what brands need to know to reach this growing market.

CTV Advertising: Explained

Connected TV advertising, or CTV advertising, refers to the advertisements shown through streamed content via internet-connected TVs (such as smart TVs) rather than cable or satellite services. CTV ads allow advertisers to reach consumers that don’t have traditional TV services or are otherwise diverting their attention to streaming formats.

These ads typically play before, during, and/or after the content the viewer has chosen to stream. They may range anywhere from 15-30 seconds but can last as much as a minute or more.

Advantages of Connected TV Ads

Besides the obvious advantage of having a way to connect with consumers, CTV advertising offers a range of advantages for brands and consumers alike.

CTV Ads Are More Targeted: Because video ad networks collect data about each user’s viewing habits, household, and other factors, you can choose which viewers to target with your ads. Doing so ensures that your ad reaches the right people and that you’re not wasting your time and money on ads that no one will see.

CTV Ads Are More Engaging: Because viewers are choosing to watch CTV content, they’re more likely to pay attention to the ads that appear during their viewing experience. Again, this goes back to data. When ads are relevant, people don’t mind watching them. Your ad has a better chance of being seen and remembered by potential customers. Check out our research report on streaming viewer behavior, “The Consumer-Defined Future of Streaming is Here,” 

CTV Ads Are More Cost Effective: CTV advertising is less expensive than other forms of television advertising. Plus, when you’re reaching more of the right audience, you can increase your leads and conversions to maximize ROI and reduce wasted ad spend.

How to Measure the Impact of CTV Ads

CTV advertising is largely data-driven, which is good news for advertisers that need to demonstrate impact. Much of the process of measuring campaigns is automated by CTV platforms. The platforms set ad prices and placements based on a range of dynamic factors.

The metrics that advertisers can easily measure at a glance include but are not limited to:

• Video completion rate (which is often high since many CTV platforms don’t let users skip ads)
• Brand reach
• Brand lift
• Shopping actions (e.g., a user sees an ad, then makes a purchase)
• Engagement actions (e.g., a user sees an ad, then visits the website)

These metrics become even more powerful when blended with other channels and methods, such as retargeting campaigns. Working with Infillion gives you 360 degrees of insight into your performance with built-in tools that measure things like brand lift and attribution.

Is CTV Advertising Right for You?

Though CTV is still new territory for many brands, it’s a landscape worth exploring. Feel free to book a discovery call with Infillion or head back to our blog to keep learning and exploring your CTV options.

As the popularity of video advertising continues to grow, so does the number of video ad networks. This makes it harder for brands to choose where to allocate their ad budgets. Since not all video ad networks are created equal, brands need to evaluate their needs before investing their resources. Here’s some food for thought:

What Is a Video Ad Network?

A video ad network is a technology platform that enables brands and agencies to buy video advertising on websites and apps. Video ad networks help advertisers reach their target audiences by aggregating inventory from multiple publishers and delivering ads across various devices.

Video ad networks offer a variety of features that can benefit advertisers, including:

• Access to premium inventory that might not be available on an open exchange.
• Targeting capabilities that allow advertisers to reach their desired audience.
• Transparency around pricing and performance so advertisers know what they’re paying for.

Google Ad Exchange (AdX) is an example of a video ad network. It provides publishers with a marketplace where they can buy and sell digital advertising space—kind of like a stock exchange for media.

5 Criteria for Choosing the Best Video Ad Networks

Choosing the right mix of video ad networks gives you your best chance of reaching the right people at the right times. That’s why brands need to take an active role in selecting their ad networks instead of just throwing money at a publisher.

Here are five criteria to guide your choices:

Inventory: Inventory on a video ad network can vary greatly. Some networks only work with premium publishers, while others allow anyone to join. Brands need to be careful about where their ads will appear, as they could show up alongside channels or content that doesn’t fit with their image.

Cost: Video ad networks typically charge based on either impression or action (click-through) pricing models. These costs vary between networks. For example, YouTube charges by both the view and click-through rate (CPC), while Facebook only charges by CPC.

Targeting: Some video ad networks allow advertisers to target by demographic information, such as age, gender, and location. Others allow targeting by interests or keywords. And some video ad networks allow for both demographic and interest-based targeting.

The most effective video ad campaigns take advantage of all the available targeting options to reach the right audience with the right message. 

Device and Ad Format Support: Brands that want to use device type in their targeting profiles need to make sure your video ad network supports your chosen devices. The same goes for ad format—not all devices will support shoppable experiences, clicks, scans, or the option to choose your own experience.

Analytics: Data and analytics help you measure how your ad strategy is performing. While most video ad networks will provide some data-driven insight, some platforms may offer more granular information than others.

Getting Expert Guidance with Infillion

Infillion’s suite of media products gives you comprehensive functionality across multiple devices, channels, and audiences, helping empower your brand’s strategy on any video ad network. Contact us today, and let’s discuss your strategy!