Better connected.

With more TV's directly connected to the internet (Smart TV), as well as hardware that enables a TV screen to become connected, e.g. TV sticks, games consoles and set-top boxes, together with tablets, desktop computers, laptops and mobiles, means that the consumer has more opportunities than ever to access video content. For advertisers, connections like these with a return feed, and the data associated with an IP address, provides cost effective micro targeting, addressable video opportunities, and accurate delivery measurement. Bringing together precision targeting with the high impact of video and TV.

The vast majority of UK households have access to major VOD services. 85% have access to Broadcaster VOD (BVOD) services, e.g. BBC iPlayer, ITVX, All4, My5 etc., 68% have access to Subscription VOD (SVOD) services, e.g. Netflix, Amazon Prime, and Now TV. There is a growing audience for these services, in 2022, time spent watching services such as BBC iPlayer, ITVX and All 4, increased by an average of three minutes per person per day*.

The key factor in successfull BVOD is the viewers acceptance of non-skippable advertising to allow free access to premium quality content, delivering around a 50% increase in purchase intent compared to skippable ads.**

Recently some consumers are cord-cutting and reducing their Pay-TV subscription packages, instead opting for skinny bundles or subscription video on demand. These (SVoD) services like Netflix and Disney+ were used by 67% of UK households by Q2 2022*.

As generations continue to change behaviours it is important that advertisers do the same and take advantage of the opportunities to reach audiences and potential new customers with high recall video messages.

On a global scale, over half of video impressions were delivered to Connected TV’s in Q1 2019. This growth in CTV impressions is, in part, a product of the experience this environment provides, viewers are engaged with the content and the ads, with 30 second ad lengths responsible for 69% of all impressions **.

Further fusion between linear TV and video on demand services, will provide the viewer with an even more tailored experience for both content and advertising. All TV and video platforms are implementing robust data strategies which will enable addressable advertising to grow.

Existing offerings like AdSmart from Sky have seen that 75% of advertisers were new to TV or Sky Media, with regional advertisers and those targeting niche audiences first to take advantage of the addressable opportunities. AdSmart allows you to pick and choose from a range of attributes, to reach your ideal viewer. With the measurement of impressions based on 75% or more of the commercial viewed at normal speed, it represents a low risk, low capital investment entry for businesses and, more importantly with Sky's premium content, a safe environment for brands to be appreciated and flourish.

For further information and to find out how to access addressable video opportunities, talk to us.

*Ofcom Media Nations (UK) 2019 - 2022 Reports.

**Nielsen US video impact study.

**Source: articles: warc-datapoints connected tv.

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