September 2016
A Connected Opportunity
The way people are watching TV is rapidly evolving. In the past year, global connected TV (CTV) usage has grown by over 300% with devices like Apple TV and Roku leading the charge followed by audiences on gaming consoles such as Xbox and PlayStation. At SpotX, we’ve felt these seismic CTV trends impact the way our publishers and advertisers think about monetizing ad inventory and reaching audiences, respectively. Watching ads on CTV feels the same as watching them on linear TV. However CTV has the audience targeting and measurement capabilities of digital. As a video advertising industry leader, we’ve anticipated the shift to CTV and have augmented our Platform offerings to best serve consumers’ ever-changing media consumption habits.
TV Transformed CTV adoption has been steadily on the rise, driven by the widespread availability of OTT (over-the-top) devices that power TV connectivity and TV with directly integrated internet capabilities.
In the US, here’s how various CTV devices are taking over our homes.
55%
have a gaming console
31%
26%
have a multi-media device
have a connected TV
“CTV is the fastest path forward into this new ecosystem due to its open and extensible nature. It will provide brands with the ultimate combination of one-to-one messaging, premium content adjacency, and an immersive big screen experience. Audiences and brands will follow en masse." -Allen Klosowski, VP of Mobile and Connected Devices @TheBigKlosowski
A Shared Victory Since the nature of CTV requires viewers to select and initiate a viewing experience, this level of interest, interactivity, and engagement gives publishers a huge advantage as it becomes a valuable advertising space. As such, this allows publishers to command higher CPMs (cost per thousand impressions).
The continuous play and lack of “skippability” on CTV are some of the benefits advertisers covet most. According to the IAB, completion rates for ads on CTV clock in at 97%. On the SpotX Platform, completion rates on CTV hover right on par.
Completion Rates
CTV CPMs on the SpotX Platform are on average:
CTV
95%
Desktop
71%
Mobile App
69%
Mobile Web
55%
2.24 X
greater than on Mobile App
2.51 X greater than on Desktop
2.61 X
greater than on Mobile Web
From 2015 to 2016 we’ve seen CTV CPMs increase by 78% on the SpotX Platform.
“With the increasing population of cord-cutters and birth of ‘cord-nevers’, it makes sense for broadcasters to mirror this trend and offer more CTV solutions. By investing in CTV early, SpotX will be able to help publishers monetize 100% of their cross-screen inventory. With the ease of programmatic execution, advertisers will be writing fewer manual insertion orders as users migrate away from linear.”
A Connected Opportunity
- Nick Cuniffe, Sr. Director of Product Management
Growth is never by mere chance; it is the result of forces working together Since bolstering our CTV offerings at SpotX, we’ve seen a multitude of publishers integrate with our Platform to monetize their CTV channels over the past year. From 2015 to 2016, our CTV inventory supply increased 10X.
2015
2016
CTV impressions and publisher revenue grew significantly lately. From 2015 to 2016, we see the largest jump of impressions on CTV and subsequently, largest increase in publisher revenue made on CTV. This can be attributed to the launch of the SpotX tvOS SDK, the first SDK of its kind to the market.
CTV Impressions
Publisher Revenue
greater in
greater in
16X
24X
Q1 2016 than in Q4 2015
Q1 2016 than in Q4 2015
Bring your shades, the future of CTV is bright CTV users in the USA (millions)
2016
2017
2018
2019
163.8
181.3
192.5
200.8
On a global scale, it is likely that CTV growth follows a similar exponential growth as the U.S. Here’s a look at how CTV has and will progress in a decade worldwide.
Connected TVs Worldwide by Device
350 300 250
millions
200 150 100 50 0
Pay TV Set-top Box
Streaming Box
2010
2015
Gaming Console
Smart TV
2020
Sources 1. http://www.statista.com/statistics/247160/forecast-of-the-number-of-connected-tv-sets-worldwide/ 2. http://www.statista.com/statistics/247165/forecast-of-the-share-of-connected-tv-sets-worldwide/ SpotX data as of July 2016
www.spotxchange.com
www.spotxchange.com
