Mark Jung, Vice President of Product at Dstillery, explores how advertisers can effectively navigate streaming with strategies like CTV integration, AI targeting, and leveraging clean room data to reach and engage audiences.
The streaming wars are entering a new generation, marked by Paramount’s potential revival through Skydance and the emergence of unconventional social media entrants like LinkedIn, X (formerly Twitter), and TikTok.
Increased merger and acquisition (M&A) activity is also shaping the advertising space as legacy media players adapt to shifting consumer preferences toward streaming. This transformation underscores the growing complexity of the media landscape and the necessity for advertisers to diversify their campaigns and reach their audiences effectively.
The revival of Paramount through Skydance exemplifies how traditional media companies are reinventing themselves to stay relevant in the streaming age. Skydance, known for its high-quality content and production capabilities, can potentially breathe new life into Paramount’s streaming offerings, attracting new subscribers and retaining existing ones. This move highlights the importance of content quality and brand recognition in the highly competitive streaming market. Here are other ways to approach the new generation of entrants while still ensuring effective reach and campaigns.
Programmatic and CTV Integration
At Dstillery, we have seen firsthand how brands and marketers are refreshing their strategies to navigate this evolving environment. Integrating Connected TV (CTV) into hands-on programmatic buying platforms and leveraging clean room data matching are key strategies that marketers and brands use to better understand the impacts of CTV advertising compared to standard linear television.
With its ability to deliver highly targeted ads to specific audiences, CTV is rapidly gaining traction among advertisers across all parts of the funnel and becoming a factor when looking at budgets. By using programmatic buying platforms and clean rooms to combine fragmented reporting from walled gardens, advertisers can better target the right audience and optimize budgets. Yet, this tactic is still in its early growth stages
Adopting AI Targeting and Measurement Technology
Adopting AI targeting and measurement technology is crucial. These advanced tools help media buyers understand and then find customers on the most relevant types of content, genres, networks, or categories. AI-driven insights can reveal patterns and trends in consumer behavior that might not be immediately apparent through traditional methods.
For instance, an AI system can analyze vast amounts of data such as aggregated historical reporting or ACR data related to their campaigns to better understand and optimize against their desired KPI and audience.
One of the critical aspects of effective targeting in streaming is understanding how ID-based targeting translates into CTV delivery to better identify your audience. While cookies allow for a 1:1 relationship between an ID and a single browser for targeting, these cookies do not exist on other devices, and so must often be probabilistically matched to a household via an IP address. This means that while one person in a household may belong to a given audience, ads will be shown to everyone in that household. It is essential to consider this when selecting your audiences or using content-based optimizing features to better fine-tune your targeting.
The Streaming Players
The continuing growth of ad-supported tiers on leading streaming platforms and potential entries of social players like LinkedIn, X, and TikTok further intensifies the competition. These platforms bring unique strengths and audiences, challenging traditional media companies to innovate and adapt.
LinkedIn, for instance, could leverage its professional network to offer niche content tailored to career development and industry insights, while TikTok’s short-form video format appeals to younger audiences looking for quick, engaging content. X’s vast user base and real-time engagement capabilities could position it as a formidable player in live-streaming events.
Increased M&A activity among legacy media players reflects their efforts to consolidate resources and expand their streaming capabilities. These media giants aim to enhance their content libraries, technological infrastructure, and market reach by acquiring or merging with other companies. This trend will likely continue as companies strive to stay competitive.
What Is in Store for Advertisers
These developments mean advertisers must navigate a more fragmented media environment. Diversifying campaigns across multiple platforms and formats is essential to reaching the best audiences. Advertisers must stay abreast of the latest trends and technologies to engage viewers and measure the impact of their efforts.
Overall, the new generation of streaming wars presents challenges and opportunities for advertisers. By starting to take CTV into your programmatic buying platforms, leveraging clean room data matching, and adopting AI targeting and measurement technology, advertisers can better navigate the fragmented media landscape and reach their desired audiences.
Understanding the nuances of both ID-based and content-based targeting, as well as staying informed about industry trends will be crucial for success in this dynamic environment. As the streaming wars evolve, advertisers must remain agile and innovative to stay ahead of the competition.