"Advertising in CTV is a purchasing modality that has come to stay and requires a particular strategy," says Antonella Camelione, our VP of Revenue for LATAM and Spain. But in addition to strategies, one must be aware of the most well-known and not-so-well-known terms in the Connected TV industry.
What are the essential concepts we need to know to make the most of this advertising platform?
Fundamental CTV Concepts
An acronym whose meaning translates to Video with Advertising-on-Demand. It is a video content format offered to users for free, but with the inclusion of advertising. Viewers can access this content on demand, choosing which videos to watch and when to watch them, in exchange for watching ads during playback.
It is a video content distribution model where users pay a periodic subscription to access a library of video content on demand. Subscribers can watch the videos anytime and as many times as they want while their subscription is active.
Refers to the distribution of video content over the Internet without relying on cable or satellite TV providers. Some examples are Hulu, Netflix, Amazon Prime, YouTube TV, and Disney+, which can be streamed on any Internet-connected device without the need for a cable or satellite subscription.
Is the real-time transmission of multimedia content to devices (phone, tablet, computer, TV) via the Internet. Users can watch movies, TV shows, or sports events in real time without having to pre-download the content - in other words, wirelessly.
Is a sequence of ads displayed in CTV. It can include multiple ads in a commercial break, allowing advertisers to tell a story or showcase different products in a single advertising experience.
Global Frequency Capping
Is a feature used in ad broadcasting that ensures a user is not repeatedly exposed to the same ad within a specific time period.
Home Screen Ads
Static ads that appear at the beginning of a platform or application. Typically, they consist of brief videos or images and may include a call to action inviting the user to learn more.
In-Stream Video Ads
Short ads, between 15 and 30 seconds, that play before or during a program. They are an effective and cost-efficient way to adapt traditional TV ads for viewing on connected TVs.
Refers to CTV services that offer free content to users, funded through advertising. Ads are shown during commercial breaks or at strategic moments within the content.
Refers to TVs that can be connected to the Internet and play online video content. This includes both smart TVs and conventional TVs that can be connected to external devices like Apple TV, Roku, Chromecast, Amazon, gaming consoles, among others.
Is a type of television that encompasses different forms of non-traditional television, such as satellite TV, connected TV, and addressable TV.
Private Marketplaces (PMP)
Are customizable and exclusive platforms that operate by invitation, where premium publishers make their high-quality ad inventory available to buyers. These markets offer greater transparency and control over advertising transactions. This exclusivity allows buyers to access select inventories and achieve better results in terms of reach and quality of ad impressions.
Is a method of ad broadcasting where a set of ads is shown in a predefined order; that is, creativity B is shown after the user has seen creativity A, allowing for a more effective and coherent presentation of advertising messages.
Metrics and Techniques in CTV
Is a metric used in CTV that determines if an ad has been genuinely visible to viewers. It is based on predefined visibility criteria, such as being on screen for at least two seconds, and provides a measure of how many ads meet these criteria.
Ad Completion Rate
This metric indicates the percentage of ads that play in full on CTV. It is crucial for advertisers to know how many viewers watch their ads to the end, indicating the effectiveness of the advertising campaign.
Refers to the unique audiences exposed to specific ads who have not been reached through other screens or media. This concept implies reaching an additional audience not previously reached by existing advertising strategies.
Data that captures and represents users' actions and consumption habits of media, allowing for personalization of user experiences and delivering relevant ads and content. These data are collected to better understand consumer behavior and use it in strategic advertising and marketing decision-making.
Is a technique that allows displaying ads to viewers in specific geographic locations. This gives them the opportunity to target local audiences or effectively segment broader geographic areas.
Is the practice of limiting the number of times a viewer sees an ad on CTV within a specific time period. This helps avoid saturation of users with the same ad and ensures the message remains relevant without being annoying.
Refers to personalized recommendations based on algorithms that help users find TV shows, movies, or videos related to their interests.
Acronym for Multichannel Video Programming Distributor. These companies are content providers that offer content via traditional and on-demand media over the Internet. Some examples are Sling TV, Hulu Live TV, YouTube TV, DirecTV Now, and FuboTV.
Is an automated method for buying and selling online advertising that uses programmatic technology to show relevant ads to viewers in real-time, optimizing the advertising space buying process.
Is an advanced technique to avoid targeting someone who has already purchased a product or service. It also refers to the removal or blocking of unwanted advertising or content.
A Useful Tool
Up to this point, we have explored and broken down the dictionary of the Connected TV (CTV) world. This glossary was designed to provide a useful and clear reference for industry professionals, advertisers, and consumers.