Let’s take a break from worrying about third-party cookies to look at one cookie-free ad alternative: streaming video and connected TVs. Pixalate reports that programmatic ad spend on connected TVs rose 70% from the first quarter of 2020 to the third quarter, and reaches 72% of U.S. households. Pubmatic found that Over-The-Top (OTT) TV ad revenue already accounts for 30% of programmatic video ad revenue for U.S. publishers who offer the option. OTT includes video on mobile devices as well as connected TVs.
Drilling into streaming video, Integral Ad Science found that 88% of consumers watch at least some streaming video. Nearly all (91%) of that group watch ad-supported video although 55% skip ads when they can. Nielsen says that streaming accounts for 25% of total TV viewing.
The Pubmatic study also found that poor measurability is among the top obstacles to OTT TV advertising, with privacy and security close behind. Nielsen can’t help with privacy but they’re making a big push to improve measurement. They’ve recently added connections to 55 million devices including Vizio smart TVs, DISH and AT&T DIRECTV set-top boxes, and Nielsen’s Advanced Video Advertising panel.
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