Home On TV & Video Why CTV is Positioned to Thrive as Third-Party Cookies Fade Away

Why CTV is Positioned to Thrive as Third-Party Cookies Fade Away

SHARE:
Justin Evans Samsung Ads

On TV & Video” is a column exploring opportunities and challenges in advanced TV and video. 

Today’s column is by Justin Evans, global head of analytics and insights for Samsung Ads.

Throughout the past quarter century, digital advertising was touted for its ability to target ads and directly track results.

By contrast, traditional TV was valued for its broad reach and contextual intensity. TV promised a powerful ad experience due to the power of its programming. Targeting and measurement…not as much.

Now, as digital advertisers’ third-party cookies are crumbling, “television”— especially connected TV — and its advertisers are sitting pretty in a new world led by first-party data.

Backlit in a hero shot

As advertising adjusts to a world without third-party cookies, what increases is the importance of media and measurement partners — or even entire ecosystems — that can provide targeting and insights for their clients.

Connected TV (CTV) is emerging as one such ecosystem. The personalized ads in the CTV ecosystem run on proprietary, or “first-party data” identifiers (device IDs or advertising IDs), to reach consumers on smart TVs.

Players in the CTV space follow both new privacy laws as well as industry recommendations from the IAB. One goal of identifiers is to comply with these laws, enabling the consumer to share preferences.

Since CTV identifiers (device IDs or advertising IDs) are still a form of regulated personal information, how they are used is crucial. For example, at Samsung we require that the consumers opt in to receive targeted ads on their Smart TVs when they set up their TV. This consumer-centric approach allows viewers to choose their settings and manage their privacy preferences at any time. The video ads experience can therefore be customized using the first-party data attached to that identifier.

If this were a TV drama, now is the moment when CTV steps through the door, backlit in a hero shot.

Subscribe

AdExchanger Daily

Get our editors’ roundup delivered to your inbox every weekday.

Scale without cookies

Without the massive adoption of streaming in the past year, CTV’s identity developments might have been nothing more than a technical subplot in the narrative about the deprecation of cookies.

But connected TV has reached maturity. Ninety-two percent of adults ages 18-49 live in homes with CTV access, according to Nielsen. According to Samsung’s internal estimates, 63% of all time spent on TV is now spent in streaming; and approximately 80 minutes per day is spent with ad-supported streaming content.

Connected TV has become a scalable medium for ads. And it has never relied on cookies.

Three ways to grow

So, how can first-party CTV data help advertisers drive growth?

First, the data can help advertisers find their target audience more efficiently.  Matching first-party CTV data with advertiser audience data as well as third-party data allows advertisers to find their audiences the way that they want—and to communicate with those audiences at scale.

Second, by using insights about how people watch linear and stream content, advertisers can avoid waste. For instance, by not serving too many ads to too few people across linear and CTV environments. The flip side is that consumers get a better experience.

Third, by measuring the impact of their advertising.  Exposure to a TV ad—on linear and CTV—can be matched to sales data to determine how many new sales were generated by TV ads.

More efficient and more measurable advertising makes television advertising more accountable, and that is a recipe for growth.

The irony that television advertising began as a broad-brush, contextual approach to ads, and is now a leader in targeting and measurement, is a plot reversal that would delight any TV writers’ room.

Must Read

Advertible Makes Its Case To SSPs For Running Native Channel Extensions

Companies like TripleLift that created the programmatic native category are now in their awkward tween years. Cue Advertible, a “native-as-a-service” programmatic vendor, as put by co-founder and CEO Tom Anderson.

Mozilla acquires Anonym

Mozilla Acquires Anonym, A Privacy Tech Startup Founded By Two Top Former Meta Execs

Two years after leaving Meta to launch their own privacy-focused ad measurement startup in 2022, Graham Mudd and Brad Smallwood have sold their company to Mozilla.

Nope, We Haven’t Hit Peak Retail Media Yet

The move from in-store to digital shopper marketing continues, as United Airlines, Costco, PayPal, Chase and Expedia make new retail media plays. Plus: what the DSP Madhive saw in advertising sales software company Frequence.

Privacy! Commerce! Connected TV! Read all about it. Subscribe to AdExchanger Newsletters
Comic: Ad-ception

The New York Times And Instacart Integrate For Shoppable Recipes

The New York Times and Instacart are partnering for shoppable recipe videos.

Experian Enters The Third-Party Data Onboarding Business

Experian entered the third-party data onboarder market on Tuesday with a new product based on its Tapad acquisition.

Albertsons Takes Its First Steps Into Non-Endemic Advertising, Retail Media’s Next Frontier

Albertsons is taking that first step into non-endemic advertising next week via a partnership with Rokt to serve ads to people who have already purchased groceries.