CTV & OTT Advertising: A Guide for Marketer

1. CTV & OTT Advertising: A Guide for Marketers www.apptrove.com

2. The Digital Transformation of Television The digital advertising landscape is experiencing a significant transformation with the rise of Connected TV (CTV) and Over-the-Top (OTT) platforms. This shift is evident as global CTV markets are booming, with an average annual growth rate of 16% as of May 2023. The projected spending on CTV advertising is expected to reach $34.3 billion by 2025, reflecting a robust growth trend. Additionally, the OTT market is projected to grow by USD 934.9 billion from 2025 to 2029, accelerating at a compound annual growth rate (CAGR) of 31.3% during this period. CTV Ecosystem: 16% Annual Growth in Global CTV Markets $34.3B Projected CTV Ad Spend by 2025 $934.9B OTT Market Growth (2025-2029) 31.3% CAGR in OTT Market

3. Understanding CTV and OTT Connected TV refers to any television device that connects to the internet and enables streaming content consumption. This category encompasses smart TVs with built-in Wi-Fi capabilities, gaming consoles like Xbox and PlayStation, and dedicated streaming devices such as Apple TV, Roku, Google Chromecast, and Amazon Fire TV Stick. Meanwhile, OTT describes the delivery method of video content via the internet, bypassing traditional cable or satellite providers. Popular OTT services include Netflix, Disney+, Hulu, Amazon Prime, and many more. CTV Advertising: Smart TV Smart TV features Gaming consoles Streaming devices Popular OTT services

4. Components of the CTV Ecosystem The CTV advertising ecosystem is complex and interconnected, comprising several key components that work together seamlessly. Content broadcasters provide streaming services, while device manufacturers create the hardware necessary for content delivery. Mobile Measurement Partners (MMPs) track campaign performance and combat fraud, Supply-Side Platforms (SSPs) manage publisher inventory, and Demand-Side Platforms (DSPs) handle ad buying processes. Publishers offer valuable ad space, while advertisers invest in reaching their target audiences through these channels. CTV Ecosystem: Content Broadcasters Device DSPs Manufacturers CTV SSPs Publishers Mobile Measurement

5. Monetization Models Understanding the various monetization models is crucial for marketers entering the CTV space. Subscription Video on Demand (SVOD) requires users to pay recurring fees for ad-free content access, exemplified by Netflix's traditional model. Advertising-Based Video on Demand (AVOD) offers free content supported by strategic advertisement placement, as seen with platforms like Xumo and Crackle. Transactional Video on Demand (TVOD) employs a pay-per- view model for specific content, while hybrid models combine multiple approaches to maximize revenue potential, as demonstrated by Hulu's tiered service offerings. Monetization Models: SVOD AVOD TVOD Subscription Video on Deman Advertising Video on Demand Transactional Video on Demand Model Types: SVOD: Monthly/Annual subscription fees AVOD: Free with ads TVOD: Pay per view/rental

6. The CTV Advantage CTV advertising offers unprecedented advantages over traditional television advertising. Marketers can implement precise audience targeting based on demographics, interests, geographic location, viewing time, and device type. This targeted approach ensures higher engagement rates and more efficient ad spend. Enhanced brand safety measures allow advertisers to maintain greater control over ad placement, ensuring their content appears alongside appropriate programming. Cross-device measurement and attribution capabilities enable marketers to track the customer journey across multiple platforms and devices, providing valuable insights for campaign optimization. The CTV Benefits Praise Targeting Enhanced Interactive Advanced Analytics Extended Reach 95% Higher Engagement

7. Building Effective Campaigns CTV campaign optimization demands a systematic approach, starting with deep data analysis to understand viewer behavior and conversion metrics. Employ precise audience targeting using first- party data and lookalike audiences. Craft engaging ad content tailored for CTV's unique environment. Monitor performance consistently, using metric analysis to refine and improve your campaign continuously. Performance Metrics To measure CTV ad success, track key metrics like online purchase attribution to link viewing to sales, and post-view conversions to see actions after ad exposure. The brand lift measures awareness, engagement rates show content effectiveness and cross-device analysis reveals the campaign's broader impact across platforms. Campaign Strategy: Performance Metrics: Purchase Attribution Data Analysis Engagement Rates Post-view Conversions Audience Targeting Brand Lift Content Optimization Cross-device Impact Performance Monitoring

8. Securing Your Ad Investment Ad fraud presents a significant challenge in the CTV space, with sophisticated schemes like device spoofing and SDK hacking threatening campaign effectiveness. Combat these threats by working exclusively with verified partners who maintain transparent practices and implement robust fraud detection measures. Regular campaign auditing and data pattern analysis help identify suspicious activities early. Integration with reliable MMPs ensures accurate measurement and protects against fraudulent activities. Security Shield

9. Transforming Results with Apptrove As the CTV and OTT landscape evolves, app marketers and owners need reliable attribution solutions. Apptrove's comprehensive Mobile Measurement Platform provides real-time analytics across all CTV campaigns through a unified dashboard. Our platform excels in tracking user journeys across channels and devices, offering both CTV-to-CTV and CTV-to-mobile conversion tracking. Apptrove's robust fraud detection system protects your investments by identifying suspicious activities like device spoofing and SDK hacking in real-time. Our multi-touch attribution and SKAdNetwork analytics help optimize your sales funnel at every stage, unlocking hidden potential in your data. Ready to transform your CTV advertising? Contact Apptrove today!