CTV has become an important part of television inventory. But given our reliance on data for targeting, how does it fit into a world that values privacy?
Connected TV (CTV) is rapidly emerging to challenge the traditional media buying habits of top brands in Asia Pacific. With the explosion of video on demand (VOD) over the past decade, CTV allows brands and agencies to buy targeted audiences across a wide range of content and platforms. However, like any data-driven purchase, CTV can raise privacy and compliance hurdles that get in the way of marketers.
Since the mass production of televisions in the 1960s, television has served as one of the most powerful tools for brands to reach and deliver their messages to their audiences. However, in the era of multi-screen consumption, smart TVs, streaming, and ad-supported VOD, marketers and agencies are rapidly shifting ad spending away from traditional TV purchases.
CTV enables digital buyers and programmatic traders to buy inventory and audiences across this multi-platform ecosystem. As a result, brands can align with the viewing habits and preferences of modern audiences, resulting in better results and higher return on investment.
The increase in CTV is also evident in the numbers. Linear TV ad spending in APAC has declined significantly since 2020 and is expected to decline further in the coming years. In comparison, open programmatic CTV ad spend in the APAC region is up 15% year-over-year.
For marketers, CTV brings the best of both worlds: TV and digital advertising. Like traditional television, CTV generates massive viewership. But in addition to that, CTV boasts the power of targeting digital purchases, leveraging data and contextual advertising to deliver the most relevant content to viewers. As a result, brands should see higher engagement, better attribution, and increased return on investment (ROI).
But like other digital channels, CTV faces privacy, data and identity concerns around the world. In particular, these critical privacy issues primarily relate to the collection and use of consumer data, whether from IP addresses or from third parties.
Each market in APAC has its own regulations and laws regarding privacy and data security, and each is significantly different from the other. However, many companies follow the European Union's General Data Protection Regulation (GDPR), which is probably one of the strictest privacy laws in place today.
Given this complex setup, brand marketers in APAC can find themselves in a minefield of privacy compliance regulations. This especially occurs when data is collected without your consent or knowledge and shared with third parties without your explicit consent.
Additionally, the use of third-party cookies raises concerns as they can track users' browsing history across different sites, potentially invasive of privacy. To alleviate these concerns, advertisers should clearly communicate to viewers how their data is collected and used, and provide opt-out options.
Advertisers can also use first-party cookies and first-party data to engage with a consumer base that has consented to advertising from brands. The use of first-party data will also become more important as Google deprecates third-party cookies in Chrome this year.
Last but not least, advertisers can address these concerns head-on by using specialized technology to create accurate, compliant, and highly profitable CTV solutions.
For example, solutions such as ActiveID, Crimtan's cookie-free approach, combine deterministic, probabilistic, and signal data to establish robust identifiers and reach a broad, consented audience. We guarantee. Crimtan can also help you analyze first-party data, identify targeting signals, implement frequency controls, and explore retargeting options.
In the digital age, the most effective campaigns are those precisely tailored to the unique profile, interests, and preferences of your target audience. Similarly, success with CTV advertising comes from identifying the right customers at the right time and place with the right message. All of these require customer insight. That's why first-party data is now the best tool to customize advertising strategies, create engaging content, and reach customers more efficiently.
CTV is more than just a fad. This is an opportunity for marketers to diversify their media investments and ensure they are responsive to the current and future viewing habits of their audiences.
Smart TVs and digital video will soon become the norm for APAC viewers. By prioritizing safe and compliant CTV strategies, brands and media agencies can gain a significant advantage over their competitors. The amount of digital content available is limitless, and so are the opportunities. Serving as a bridge between traditional media buying and the digital realm, CTV is waiting to be embraced by marketers as they navigate this transformational journey.
This article was written by Joshua Wilson, JAPAC Commercial Director at Crimtan.
