Quality content is only one of many factors that determine success in today’s competitive FAST connected-TV (CTV) market. Overall viewer experience includes everything from fast load times and easy navigation to content selection to well-timed and well-placed advertising.
For large media companies, the content creators are often also the owners of the distribution platforms. Therefore, they’re responsible for not only creating great content but for also creating a great viewer experience in the CTV landscape. The stickiness of the application program interface (API), discoverability tools and ad loads are all important factors in reducing churn and increasing content view time.
Once dominated by streaming services like Hulu and Peacock, free ad-supported television (FAST) is a growing factor competing for viewers looking for more variety without a subscription fee, growing faster than apps with a subscription fee. Comscore reports that FAST viewership grew 17% from 2021-23, compared to 9% for non-FAST apps.
What’s more, companies like Amazon, Charter Communications and Roku are at various stages of building their own TV sets to own more of the viewer experience and capture a higher percentage of revenue, competing with companies like Google, Samsung and LG.
When so many media companies are vying for viewers and advertising dollars, it’s important to create experiences that attract and retain attention. Media companies need to be equally alluring to viewers and advertisers with smarter uses of data and AI and new creative formats.
Unlocking CTV’s Data/AI Potential
One obvious benefit of CTV is that as a digital channel, the experience can be personalized using targeted content recommendations as well as targeted ads. Generation Z likes YouTube advertising because it’s super-relevant. Infillion found that more than 60% of consumers would share personal data to get more relevant ads on CTV. Advertisers want to be able to run targeted ads on CTV the way they do on other digital channels.
Media companies have an opportunity to work much more closely with advertisers to unlock the potential of data-driven experiences for viewers. A study by Truthset found most CTV data being sold to advertisers is flawed. Industry leaders are working to link advertisers directly with publishers to share quality data more directly. Media companies can participate in the joint industry committee’s initiative to create a streaming data set between advertisers and media companies and be at the forefront of the data infrastructure that will drive the future of CTV. Being data-first is critical for knowing as much as possible about viewers and for being able to give advertisers as many levers as possible to reach those viewers effectively.
Pair this initiative with data-driven content curation, and media companies suddenly have a much stickier experience for their viewers. Netflix pioneered the CTV content recommendation algorithm, and they test different ways of suggesting content across the viewing experience. YouTube also has data-driven content suggestions using its own search data. Competitive media companies need to get smart about their own approach to keeping viewers interested.
AI can also help media companies move quickly. In addition to algorithms and analytics that help advertisers reach audiences, AI can also help with content and creative development. CTV companies can use generative AI to help advertisers design creative with self-service tools, make many versions of an ad, or alter creative to match better with the content on the show.
CTV Offers Space To Innovate
CTV provides media companies with a lot of room to experiment. Apps can incorporate everything from commerce to social media to interactive gaming to appeal to their audience. The secret is to test and learn what works quickly to evolve ahead of the pack.
Media companies should test as many new viewing experiences as possible to see what viewers and advertisers like best. Perhaps people want alternatives to typical in-stream commercials, or they want interactivity or more relevance.
Brands like Lexus use virtual product placement that allows advertisers to insert products and signage directly into content, which gives advertisers a more contextual opportunity to reach viewers and doesn’t interrupt viewing. Walmart works with Roku to create shoppable content with prepopulated payment and shipping information to make the process as seamless as possible for the viewer. And Hershey worked with LG Ads to advertise directly on the home screen with interactive display ads.
Media companies can use these tools to start incorporating more experiential elements that viewers like, especially the most digitally engaged generation of all, Gen Z. Premium CTV may be mostly movies and long-form content today, but there’s no reason why media companies won’t incorporate tricks from YouTube and social media to include short form, user generated, interactive and commerce into their apps in the near future.
With an approach that uses data and AI and embraces experimental content and advertising, media companies can compete more effectively as giants like Google and Amazon pour billions into their own offerings and viewers get more apps to choose from every day. Content companies that lean into these innovations when supporting quality content on their platforms will have a greater chance of success and will hold consumers’ attention more consistently, delivering what the consumers want most in the end, which is great quality in a great viewing environment.
