Addressability and Connected TV Advertising
Learn more about Connected TV at Streaming Media East 2022.
Read the complete transcript of this clip:
Chris Pfaff: Aulden, you're with Philo, a premium channel that's 100 percent programmatic. I want you talk about how you're serving advertisers and talk a little bit more about what the value stream is there, because of course you're a perfect jumping off point from linear MVPDs to virtual.
Aulden Kaye: In terms of linear TV and that sort of behavior, what we actually see at Philo is that linear TV is not going away at all. It's just the delivery mechanism that's changing. And that creates a lot of opportunities in terms of our subscriber behavior. We see people watching more than three hours a day, 85% in that live linear window and 98% on the TV screen. So we are seeing people use Philo the way you would use a traditional TV service. On the ad side, what's really different is that all of our ads are 100% addressable, delivered impression by impression to a specific viewer. Who's watching a given show at a given time, the right ad to the right person in the right context. And as you mentioned, we are 100% programmatic and there are a number of reasons that we decided to go that way.
We're an independent company. When we started, we didn't inherit a direct ad sales team. And so we decided not to build one. And we had a lot of conversations across the industry with advertisers, with agencies about the way that they were looking at CTV. And I think one of the big things that we heard is Philo hasn't released recent subscriber numbers. The most recent ones that we did release were 850,000 subscribers. And we've grown since then. And that is a great scale, but it is not when people think about buying TV. They're thinking about more than 100 million households in the U.S. And so we understood that advertisers were not going to be buying just on Philo, that they were going to be looking for their audiences on Philo, but also across the CTV ecosystem and more traditional linear. And so we wanted to make addressability as easy as possible. We kind of leaned into programmatic as a way to enable that.
So we're doing everything programmatically. We're passing through signals in the bitstream, like client-side device ID and IP address to enable advertisers to find their relevant audiences on and outside of Philo. And then to do that sort of holistic measurement across the media that they're buying on Philo and across the CTV and broader ecosystem.
On the surface, low render rates would seem to represent an annoying illustration of opportunity cost—the ads (and therefore revenue) that could have been delivered but weren't, typically because a user stops watching in the middle of the stream. However, there are more subtle and meaningful implications of low render rates that publishers need to be aware of.
In order for streaming services to offer a truly "real TV" experience, they need to match content, ads, and devices, as well as support rapid spikes in traffic, maintain high quality of experience, and more. In short, it all comes down to the manifest manipulator.
Advertisers are advised to use a combination of tactics to achieve their goals: Reach more potential buyers with traditional data-driven TV and then use addressable advertising as a tactic to reach those more likely to buy sooner.
Reimagining how the industry buys, sells, and measures TV (and digital) is easier said than done, but there are more than a few places to start for a simple refresh on how to think about TV ad commitments this year.
Advertisers must work with publishers and technologies to make sure viewers receive the ads they want, every single time.
Innovid CTO & Co-Founder Tal Chalozin discusses future directions for connected TV moving beyond the linear TV paradigm into enhanced, direct ecommerce opportunities in this clip from Streaming Media Connect 2022.