Addressable video advertising is getting a big boost with LiveRamp’s recent announcement that its IdentityLink offering can now push audiences to connected-TV.
Quote from Julie DeTraglia– Head of Research @ Hulu:
“We have a lot of our advertisers who use LiveRamp to identify segments, measure ROI and to match data,… The previous methodology didn’t allow for a full and complete out match against the OTT viewing … so this allows for a more deterministic data set against which an advertiser can measure their campaign.”
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Why this matters: CTV/OTT is booming and addressable advertising is a win-win for both buyer (lower eCPMs) and seller (higher CPMs).
Share of Video ad spend in 2018 according to MAGNA (% of total):
1) Linear TV — $63B (96%)
2) OTT — $2B (3%)
3) Addressable TV — $800M (1%)
Quote from Peter Naylor — SVP and Head of Advertising Sales @ Hulu:
“If you look 12 or even 24 months down the road, video agnosticism will truly begin to take hold in practice.
The rise of addressable inventory and the collapse of gross rating points as a measurement standard are going to create a shift, and you’ll have a new breed of data-informed and audience-centric buying. The whole ecosystem will continue to evolve rapidly. That’s when we’ll see the role of an advanced video specialist for OTT become widespread.”
Hulu advertising revenue in U.S. (YoY growth):
1) 2016 — $873M (↑ 16%)
2) 2017 — $986M (↑ 13%)
3) 2018 — $1.1B (↑ 16%)
4) 2019P — $1.3B (↑ 15%)
5) 2020P — $1.5B (↑ 13%)
Apps on Roku platform (YoY growth):
2) 2018–5,000 (↑ 11%)