ITV next February will start to sell its video-on-demand programming to advertisers in the same, automated way they buy video from the likes of YouTube and Facebook.
The arrival of the commercial broadcaster’s addressable platform comes almost a year after it struck a deal to use ad tech vendor Amobee to sell its ads in online auctions. In practice, it means that instead of pushing the same TV ads to all viewers watching a particular show, based on information about that program, advertisers can target specific groups of the audience based on their preferences. This sharper targeting is made possible using data gleaned from ITV’s streaming service, ITV Hub, which is combined with first-party and third-party data such as log-in details and location.
Being able to sell ads in online auctions frees ITV to go after those advertisers that have enjoyed the targeting of online video but are concerned over the safety of their brands in those environments. Some advertisers were so concerned earlier this year that they started using the budget they would have spent on online video to buy addressable ads in streaming programming. With Planet V, ITV wants to compete with a wider array of media owners.
“Planet V is a significant step forward for us, meeting the widening demands of advertisers and bringing ITV’s unparalleled combination of mass simultaneous reach and targeted advertising,” said Kelly Williams, managing director for commercial at ITV. Updates to the platform will come in the months after its launch, providing what Williams said would be the “very best frictionless, data-driven buy in a premium, brand-safe environment for our clients.”
The promise of addressable TV — bringing targeted advertising to classical broadcast TV — has been bandied about for a while. Commercial broadcasters like ITV have resisted building out their own addressable TV businesses until now because to do so risks putting their content into online auctions where the premium they charge can be chipped away by an algorithm that values an eyeball like any other. But the risks of those online auctions no longer outweigh their potential. People spend more time watching VOD content, which is fueling a market that will be worth €825 million ($705 million) by 2020 across the U.K., Germany, Italy, France and Spain, according to ad tech vendor SpotX.
“This presents an exciting and much-needed opportunity for increased transparency and efficiency across linear and VoD advertising,” said Jamie Clilverd, video and display director for media agency The Specialist Works.
Whether ITV is able to eat into online video budgets could come down to economics. Addressable TV is expensive. A cost-per-thousand impression is around £35 ($45) on ITV, said one media buyer on the condition of anonymity. In comparison, it costs between £10 ($13) and £15 ($19) to run ads on TV, depending on the audience the advertiser wants to reach. For advertisers to buy those impressions, they need to be able to justify that the higher price and limited levels of exposure on a mass-reach channel like TV offset the cost of using data to target households and individuals.
“We had a client that was looking at addressable TV solution where they were paying £3 ($3.85) a CPM to hit a broad audience, which inflated up to £13 ($16.70) when you put one or two audience segments into that buy. And it didn’t justify that outlay when you’re an advertiser that works on short-term metrics. It doesn’t justify the multiplication of a base CPM,” said Henry Daglish, founder of The7stars media agency startup Bountiful Cow.
Member ExclusiveFuture of TV Briefing: TV advertisers have cut back on this year’s upfront deals
This week's Future of TV Briefing looks at how advertisers have cut back on their upfront commitments with TV networks.
Member ExclusiveFuture of TV Briefing: Q&A with Telemundo Streaming Studios’ Juan Ponce on the ‘upside-down’ streaming market
This week's Future of TV Briefing features an interview with Telemundo Streaming Studios' Juan Ponce on how the market for streaming shows has shifted, with services altering their risk profiles and investment strategies.
WTF are frequency caps?
Streaming audiences nor streaming advertisers are happy about the same ads being shown to viewers over and over again, an outcome that frequency caps are supposed to mitigate.
SponsoredHow FAST channels are redefining primetime opportunities for advertisers
Sponsored by Vevo With the competition from content providers continuing to build, the traditional primetime TV slots are no longer guaranteeing the mass audiences they once did. Television viewership is evolving, and the primetime window of 8–11 p.m. is less broadly reflective of younger audiences’ content consumption habits. In 2022, attracting TV viewers is a […]
Member ExclusiveFuture of TV Briefing: TV advertising’s measurement landscape remains in a state of upheaval
This week’s Future of TV Briefing checks in on where the TV advertising industry's measurement shift stands heading into the new season.
Member ExclusiveFuture of TV Briefing: How the TV, streaming and digital video industry spent its summer
This week’s Future of TV Briefing recaps what transpired over the summer for the TV, streaming and digital video industry.