Innovid President, Beth-Ann Eason joined Fox Business News to discuss the changing TV landscape, new advertising opportunities and examples of what drives results for advertisers today.
The shift to viewing content through internet-enabled/streaming devices, or what we call connected TV, is surging -- over 55% of Americans watch programming on a connected device today according to eMarketer. That number is expected to grow to over 60% by 2020.
The content experience has also transformed. We no longer have a scheduled time to watch programming designed for mass appeal from a handful of networks. We have choice - choice from thousands of channels with hyper relevant content in line with our personal likes and interests.
Yet despite this massive innovation in the content experience, the majority of video ad experiences haven’t changed in the past 70 years -- until now.
The way consumers engage with brands has changed. Modern advertising needs to transform in line with these changing demands and expectations. The world has embraced personalization. It is a part of our everyday lives from what we buy through Amazon recommendations, to Hulu’s curated watchlists.
The opportunities these days are endless. We now have the technology and infrastructure to scale personalization to TV ads to better complement the new viewing experience. Brands can engage with viewers in a way never before done on TV and see sales impact. And brand lift. And engagement. All from the TV.
Less Ads, More Relevant Experiences
The connected TV advertising space has, and will continue to, grow in the coming years. Revenues from connected TV advertising are expected to reach $31.5 billion this year. Much of the growth in connected TV will be ad-supported. On Roku, the largest market player, 50% of time is spent watching ad-supported content.
Major subscription-based companies are also entering the ad-supported connected TV space. Amazon plans to launch Free Dive, and it’s long been hypothesized Netflix will adopt an ad supported model. The connected TV advertising market will only continue to grow as more and more viewers make the switch.
There is also a massive opportunity to completely re-define what TV advertising looks like - how less ads, more relevant experiences and the use of data will shape the industry. At Innovid we partner with marketers and media companies to create new advertising models that increase engagement and time spent with brands in ways that also provide more value to audiences.
The Future of TV
Connected TV creates a best of all worlds scenario for TV viewers and brands. Brands layering data and interactivity to TV ads are seeing significant lifts in favorability and sales. Viewers get what they’ve come to demand and expect these days, a tailored and relevant experience they can engage with.
We’re just getting started but there’s a lot of exciting innovation to come across data-driven video and connected TV.