Data collaboration will drive CTV growth this year
LiveRamp’s COO, Melanie Hoptman on why 2022 will be the year of CTV for Australia.
TV remains a place where Australian eyes are fixed. In 2021 alone, total national TV viewership increased dramatically in the 12 months to 31 December, generating $4.1 billion in ad revenue for the year. The biggest growth area was Connected TV, or CTV.
Broadcast Video on Demand (BVOD) saw almost exponential revenue growth of 63.4% in the last six months of 2021, bringing revenue to $218 million and indicating fast-growing recognition among advertisers of our hearty appetites for high quality, long form broadcast content that can be consumed at our discretion.
When it comes to Australian broadcasting, 2022 will be the year of CTV. CTV’s rise will also correspond to ramped-up data collaboration among broadcasters, as they shift revenues from linear to digital and look to unlock all that it holds with increased addressable scale.
What CTV data collaboration looks like
Successful data collaboration is dependent on breaking down data silos between parties without sacrificing data security and, importantly, doing this while limiting risk exposure in the open programmatic advertising ecosystem.
In CTV, what this looks like is advertisers being offered greater use cases that leverage broadcaster data, insights and inventory. Through this, advertisers will gain a new level of control over how they buy, measure and optimise campaigns.
If done well, this data collaboration can be a means to strengthen businesses’ understanding of their customers, increase customer loyalty, and sustain growth for the long-term. Customer intelligence helps to deliver a more personalised TV-watching experience for consumers, from the types of ads that consumers see, to connecting advertisements with consumers’ actions.
Showing data collaborations’ work
One of the key challenges this year for CTV in Australia is to prove to advertisers that data can deliver increased effectiveness on their campaigns. Critical to this will be measurement solutions that are transparent, neutral and comparable to other forms of advertising – data collaboration can help to power this measurement as well.
By connecting cross-screen data, broadcasters and advertisers can unlock new insights, removing guesswork and bringing partnerships like the Upfronts to new levels of collaboration.
More data collaboration, everywhere
While this trend in collaboration will include first-party data sets, it won’t be limited to them. We will also begin seeing an increased usage of verified and trusted second- and third-party data in data collaboration, as this strategy takes root with broadcasters, advertisers, and other parts of the CTV ecosystem. This will lead to building better audiences for planning, conversion and activation. Data will also be used to optimise and measure campaigns, bringing better audience definitions.
The ultimate outcome of this will be a faster-growing digital TV market in Australia. As more viewers connect to CTV services, bigger budgets and more advertisers will follow, reinforcing the effects and benefits for both advertisers and viewers.
Melanie Hoptman
LiveRamp’s COO, Melanie Hoptman
