All Eyes on Connected TV (CTV)
– Cross Device Has a New Entrant –
CTV is a television that is connected to the internet via an exterior device (AppleTV/Roku/Google Chrome/Amazon Fire) or embedded into the television itself (Smart TV). This allows display of streaming video or subscription content.
Not that CTV is necessarily new but has reached a stage of certain ubiquity. Now in critical numbers and growing, CTV has quietly made an introduction at the cross-device party. Additionally, CTV has joined in the convergence of a new increased digital ad spend for 2016 and beyond. Digital Advertising spend now has overtaken broadcast television.
Convergence-Competitive Advantage-Technology Value Creation?
CTV has numbers climbing presently into the 60% plus of households. This is a tremendous amount of advertising and marketing real estate. Which for the most part is uncharted and underutilized.
But Not For Long…
According to Accenture 61% of digital consumers plan to purchase a Smart HDTV. Statista forecasts by the end of 2017 there will be +/- 147 million CTVs in the US; 25% of the global total and a 68% increase from 2010. The market will expand based on the only true KPI – ‘Following the Eyes’.
In 2011, Google Fiber developed in selected smaller cities (Kansas City, Austin) and a few MSAs (Raleigh, Atlanta) the implementation of a Gigabit/second network. This gradual adaptation has inspired high speed internet providers to play follow-the-leader. This is also reaching high saturation in over 21 cities in the US and growing, quickly.
According to Comcast, the technology is simple as current coaxial cable is used to carry this Gigabit capability to homes and businesses. The difference is the modem technology. Testing in these startup environments has been ongoing. In late 2016, Comcast will introduce a Gigabit speed choice that works over the existing connections for about $140/month with no contract.
Sidebar: Mobile broadband is catching up. In a study by Deloitte, a 500 Megabit/second mobile broadband was started Q2 2016 in South Korea. The forecast is a mobile broadband Gigabit/second launch planned for 2019. We’ll see…
Consumers Will Now Devour Content and Advertising
Continued Provider Acceleration in These Areas:
- Create Additional Digital Display and Video Inventory
- Reach Audiences on a Medium Traditionally Used for Video and Ad Viewing
- Create Competitive Advantage with Large Channel / APP Numbers
- Create and Access Premium Content and Audience Opportunities
Yet Another Digital and Video Convergence:
- Prepare Clients for New Channels of Profitability
- Reach Multiple Consumers at One Time, Again
- Create New Advertising Opportunities in New Geographies
- Build Business Expansion into New and Relevant Markets
New Market For Combined Services:
- Long-Form Commercials and Home Screen Placement On-Demand
- CTV Has 100% Viewability and Reach
- ‘Cord-Cutting’ of Satellite and Cable Will Drive New Consumer Markets
- Hybrid Managed Services and Programmatic Models Create Cost Effective Marketing