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Why we care about connected TV and OTT advertising

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datafuelX launches predictive analytics solutions to improve linear TV and CTV outcomes

Connected TV and OTT advertising represent the digital transformation of traditional linear TV publishers following the rise of streaming platforms and mobile viewing, and they are engaging viewers through on-demand, live and cross-channel experiences. For marketers, this enables them to reach households through any device, including smart TVs.

Combined with connected TV, the world of advertising now has a range of high-quality, affordable options to reach audiences with targeted messaging.

While there’s more flexibility and accessibility now, you also face challenges as you seek to optimize when, where, and how you reach your audiences. It’s important to tap into artificial intelligence in marketing so you can achieve the success you need.

In this piece, we’ll dive into connected TV and OTT advertising. We’ll cover:

Estimated reading time: 7 minutes

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What Is connected TV?

Connected TV (or CTV) falls into a subset of over-the-top (OTT) outlets. They’re the smart television sets, which allow you to connect to the internet via Roku, Fire TV, Apple TV, or gaming consoles.

What Is OTT advertising?

OTT (over-the-top) allows you to stream digital content directly from the internet via platforms like Hulu, Peacock, Philo, Prime Video, Sling TV, and TubiTV. You can stream OTT content on many connected devices, including tablets, phones, and laptops.

Differences between CTV and OTT advertising

At the most basic level, connected TV and OTT advertising allow you to better fulfill the increase in demand from your audience while letting you tap into new platforms and strategically distribute your content.

  • Connected TV just acts as a conduit for OTT, so you can connect your smart TV or other devices to the internet.
  • OTT Advertising passes through broadcast, cable, or satellite TV providers, so you can stream the digital content on mobile devices, PCs, or TVs.

While the methods for distribution may vary, connected TV and OTT are both solutions that address consumer dissatisfaction with the high cost and lack of options available from traditional TV. OTT advertising involves pre-roll, mobile, and web inventory, which is cheaper. Connected TV advertising is a more expensive product because you’re paying for a premium experience.

Benefits of advertising with OTT and CTV

There’s much more to the migration of consumers from traditional TV to connected TV and OTT though. CTV and OTT offer a range of benefits, which were not available at all with traditional TV or were not possible to the same extent. So, why do advertisers love OTT and CTV?

High Completion Rates

With OTT and CTV, your audience is more likely to watch the streaming ads because they’re not able to skip them. This trend is important since traditional TV options usually offer DVR services, which allow your audience to fast-forward through or skip advertisements altogether.

Targeting

As OTT and CTV advertising content evolves, you can more easily segment your audience and target different versions of your ads to various demographics. With that level of high-tech targeting, you can more easily engage with your audience and inspire them to act.

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Ask them to purchase, sign-up, or even visit your store. If the ads aren’t working, it’s also a simple matter of adjusting your messaging and optimizing your targeting to achieve the return on investment (ROI) you need.

Challenges of advertising with OTT and CTV

While you’ve probably become familiar with how OTT and CTV advertising work by watching them yourself, the strategy may not be as easy as it sounds. To be successful, you must learn the process and optimize your placements. Here are just a few of the challenges you’ll face.

Analyzing your metrics

Understanding your analytics and fine-tuning your strategic decisions is daunting. It’s a learning curve that many advertisers are just not willing to invest time and money into learning and doing well.

Finding the right advertising strategy

You need to deliver the right messaging to your target audience at the best time. To achieve that sweet spot, look at your metrics to focus on the best way to advertise your brand’s products and services.

OTT vs. CTV reporting: How to measure advertising campaign effectiveness

There’s never a single metric you should use to determine the success of your advertising campaigns on OTT or CTV platforms. So, let’s look at which factors you’ll analyze to strategize and determine the best placement options for our audiences.

Reach

Unique users who see your advertisement are your reach. You use this metric to determine where your budget is going.

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Rate of completion

Your completion rate is the number of times your audience actually sees your ad all the way through. If you have a high rate of completion, you’re sending a message that probably resonates with your audience. They’re engaged with your messaging.

Viewability

This metric helps you determine whether your audience can see your ad and what their overall experience is. You’re looking at how long they watched your advertisement and the screen size to determine how captivating your campaign was for your audience.

Attribution tracking

You should track the action that your audience takes when they view your ad. Do they download your application, view your website, or visit your store? Those simple actions are essential to the success of your marketing AI campaigns.

CPCV (cost per completed view)

You should measure the cost per completed view to better determine the success of your advertising campaign.

Which is better for advertising: OTT or CTV?

Over-the-top (OTT) and connected TV (CTV) offer different experiences for advertisers, which may make you select one over the other. You might use OTT for a political ad campaign because you’d likely reach a larger audience with marketing AI. With OTT advertising, your audience can also click on the ad, which can be an effective way to drive traffic to your website.

With CTV advertising, you might invite your audience to stop by your store, attend an event, or take some other action that doesn’t require direct interaction with the screen. You pay a premium price for connected TV ad campaigns, so you should check to see where your ads are running.

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What Is the future of OTT and CTV?

Whether you’ve been using AI marketing for years or you just started, you’ll continue to see changes in the industry that will affect OTT and CTV advertising. Media platforms and digital technologies are rapidly changing to better address the demands of your savvier audience.

82% of U.S. households with a TV have at least one internet-connected device or platform, so brands would be wise to gravitate toward OTT and CTV advertising. AI in marketing supports your efforts in this area, as you can more easily strategize and develop a plan for implementing an approach to reach your targeted audience.

Learn more about OTT and CTV

Even if OTT advertising and CTV advertising are relatively new concepts to you and your marketing team, you can use the power of AI marketing to better understand how these placement options can work for your brand.

Here are some helpful OTT and CTV resources:


About The Author

Why we care about AI in marketing
Danni White draws on over 15 years of experience as a marketer, writer, and content strategist in both B2B and B2C industries. Over the past decade, she has worked with agencies, startups, and digital publications to create content that matters to audiences and converts. She is the founder of DW Creative Consulting Agency where she works with clients to create, manage, and optimize content for optimal business impact.

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How To Develop a Great Creative Brief and Get On-Target Content

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How To Develop a Great Creative Brief and Get On-Target Content

Every editor knows what it feels like to sit exasperated in front of the computer, screaming internally, “It would have been easier if I’d done it myself.”

If your role involves commissioning and approving content, you know that sinking feeling: Ten seconds into reviewing a piece, it’s obvious the creator hasn’t understood (or never bothered to listen to) a damn thing you told them. As you go deeper, your fingertips switch gears from polite tapping to a digital Riverdance as your annoyance spews onto the keyboard. We’ve all been there. It’s why we drink. Or do yoga. Or practice voodoo.

In truth, even your best writer, designer, or audiovisual content creator can turn in a bad job. Maybe they had an off day. Perhaps they rushed to meet a deadline. Or maybe they just didn’t understand the brief.

The first two excuses go to the content creator’s professionalism. You’re allowed to get grumpy about that. But if your content creator didn’t understand the brief, then you, as the editor, are at least partly to blame. 

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Taking the time to create a thorough but concise brief is the single greatest investment you can make in your work efficiency and sanity. The contrast in emotions when a perfectly constructed piece of content lands in your inbox could not be starker. It’s like the sun has burst through the clouds, someone has released a dozen white doves, and that orchestra that follows you around has started playing the lovely bit from Madame Butterfly — all at once.

Here’s what a good brief does:

  • It clearly and concisely sets out your expectations (so be specific).
  • It focuses the content creator’s mind on the areas of most importance.
  • It encourages the content creator to do a thorough job rather than an “it’ll-do” job.
  • It results in more accurate and more effective content (content that hits the mark).
  • It saves hours of unnecessary labor and stress in the editing process.
  • It can make all the difference between profit and loss.

Arming content creators with a thorough brief gives them the best possible chance of at least creating something fit for purpose — even if it’s not quite how you would have done it. Give them too little information, and there’s almost no hope they’ll deliver what you need.

On the flip side, overloading your content creators with more information than they need can be counterproductive. I know a writer who was given a 65-page sales deck to read as background for a 500-word blog post. Do that, and you risk several things happening:

  • It’s not worth the content creator’s time reading it, so they don’t.
  • Even if they do read it, you risk them missing out on the key points.
  • They’ll charge you a fortune because they’re losing money doing that amount of preparation.
  • They’re never going to work with you again.

There’s a balance to strike.

There’s a balance to be struck.

Knowing how to give useful and concise briefs is something I’ve learned the hard way over 20 years as a journalist and editor. What follows is some of what I’ve found works well. Some of this might read like I’m teaching grandma to suck eggs, but I’m surprised how many of these points often get forgotten.

Who is the client?

Provide your content creator with a half- or one-page summary of the business:

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  • Who it is
  • What it does
  • Whom it services
  • What its story is
  • Details about any relevant products and services

Include the elevator pitch and other key messaging so your content creator understands how the company positions itself and what kind of language to weave into the piece.

Who is the audience?

Include a paragraph or two about the intended audience. If a company has more than one audience (for example, a recruitment company might have job candidates and recruiters), then be specific. Even a sentence will do, but don’t leave your content creator guessing. They need to know who the content is for.

What needs to be known?

This is the bit where you tell your content creator what you want them to create. Be sure to include three things:

  • The purpose of the piece
  • The angle to lead with
  • The message the audience should leave with

I find it helps to provide links to relevant background information if you have it available, particularly if the information inspired or contributed to the content idea, rather than rely on content creators to find their own. It can be frustrating when their research doesn’t match or is inferior to your own.

How does the brand communicate?

Include any information the content creators need to ensure that they’re communicating in an authentic voice of the brand.

  • Tone of voice: The easiest way to provide guidance on tone of voice is to provide one or two examples that demonstrate it well. It’s much easier for your content creators to mimic a specific example they’ve seen, read, or heard than it is to interpret vague terms like “formal,” “casual,” or “informative but friendly.”
  • Style guide: Giving your content creator a style guide can save you a lot of tinkering. This is essential for visuals but also important for written content if you don’t want to spend a lot of time changing “%” to “percent” or uncapitalizing job titles. Summarize the key points or most common errors.
  • Examples: Examples aren’t just good for tone of voice; they’re also handy for layout and design to demonstrate how you expect a piece of content to be submitted. This is especially handy if your template includes social media posts, meta descriptions, and so on.

All the elements in a documented brief

Here are nine basic things every single brief requires:

  • Title: What are we calling this thing? (A working title is fine so that everyone knows how to refer to this project.)
  • Client: Who is it for, and what do they do?
  • Deadline: When is the final content due?
  • The brief itself: What is the angle, the message, and the editorial purpose of the content? Include here who the audience is.
  • Specifications: What is the word count, format, aspect ratio, or run time?
  • Submission: How and where should the content be filed? To whom?
  • Contact information: Who is the commissioning editor, the client (if appropriate), and the talent?
  • Resources: What blogging template, style guide, key messaging, access to image libraries, and other elements are required to create and deliver the content?
  • Fee: What is the agreed price/rate? Not everyone includes this in the brief, but it should be included if appropriate.

Depending on your business or the kind of content involved, you might have other important information to include here, too. Put it all in a template and make it the front page of your brief.

Prepare your briefs early

It’s entirely possible you’re reading this, screaming internally, “By the time I’ve done all that, I could have written the damn thing myself.”

But much of this information doesn’t change. Well in advance, you can document the background about a company, its audience, and how it speaks doesn’t change. You can pull all those resources into a one- or two-page document, add some high-quality previous examples, throw in the templates they’ll need, and bam! You’ve created a short, useful briefing package you can provide to any new content creator whenever it is needed. You can do this well ahead of time.

I expect these tips will save you a lot of internal screaming in the future. Not to mention drink, yoga, and voodoo.

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This is an update of a January 2019 CCO article.

Get more advice from Chief Content Officer, a monthly publication for content leaders. Subscribe today to get it in your inbox.

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Cover image by Joseph Kalinowski/Content Marketing Institute

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Quiet Quitting vs. Setting Healthy Boundaries: Where’s The Line?

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Quiet Quitting vs. Setting Healthy Boundaries: Where's The Line?

In the summer of 2022, we first started hearing buzz around a new term: “Quiet quitting“.

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Microsoft unveils a new small language model

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Microsoft unveils a new small language model

Phi-3-Mini is the first in a family of small language models Microsoft plans to release over the coming weeks. Phi-3-Small and Phi-3-Medium are in the works. In contrast to large language models like OpenAI’s ChatGPT and Google’s Gemini, small language models are trained on much smaller datasets and are said to be much more affordable for users.

We are excited to introduce Phi-3, a family of open AI models developed by Microsoft. Phi-3 models are the most capable and cost-effective small language models (SLMs) available, outperforming models of the same size and next size up across a variety of language, reasoning, coding and math benchmarks.

Misha Bilenko Corporate Vice President, Microsoft GenAI

What are they for? For one thing, the reduced size of this language model may make it suitable to run locally, for example as an app on a smartphone. Something the size of ChatGPT lives in the cloud and requires an internet connection for access.

While ChatGPT is said to have over a trillion parameters, Phi-3-Mini has only 3.8 billion. Sanjeev Bora, who works with genAI in the healthcare space, writes: “The number of parameters in a model usually dictates its size and complexity. Larger models with more parameters are generally more capable but come at the cost of increased computational requirements. The choice of size often depends on the specific problem being addressed.”

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Phi-3-Mini was trained on a relatively small dataset of 3.3 trillion tokens — instances of human language expressed numerically. But that’s still a lot of tokens.

Why we care. While it is generally reported, and confirmed by Microsoft, that these SLMs will be much more affordable than the big LLMs, it’s hard to find exact details on the pricing. Nevertheless, taking the promise at face-value, one can imagine a democratization of genAI, making it available to very small businesses and sole proprietors.

We need to see what these models can do in practice, but it’s plausible that use cases like writing a marketing newsletter, coming up with email subject lines or drafting social media posts just don’t require the gigantic power of a LLM.



Dig deeper: How a non-profit farmers market is leveraging AI

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