Programmatic

Unlocking opportunities for NZ brands in the reshaped TV ad landscape

With the rise of streaming platforms and changing consumer viewing habits, traditional TV advertising models are being reshaped. Here Alex Spurzem, Samsung Ads ANZ General Manager, delves into the potential of these emerging trends and identifies how local brands can adapt their strategies to stay ahead of the curve.


What does the rise of FAST channels mean for NZ Advertisers?

FAST, or Free Ad-Supported TV, is still a relatively new concept offered by a few players in New Zealand, including Samsung TV Plus. With Warner Bros & Discovery recently announcing they will bring FAST channels to NZ this year, and others very likely to follow suit, the rate of adoption can only grow. 

The FAST model doesn’t reinvent the wheel. It mimics the linear experience, is structured around an electronic program guide (EPG), and provides premium curated channels for free – but all in a streaming environment. It re-embraces the notion of simply tuning into a channel, alleviating the nightly burden of choosing what to watch and all at no cost to the viewer. It’s easy to understand the consumer appeal. 

FAST also goes one step further by providing viewers with a short-cut to content. It offers single channel shows, dedicated to content audiences want to watch, and genre based channels that provide a niche content fix, as well as general entertainment content that viewers can easily slip into. In the face of continued inflation, we believe more viewers will seek out free content, and the gap between subscription video on-demand and free streaming will begin to reduce.

For advertisers, this is a really exciting proposition. It means brands can marry the big-screen, high-quality experience of TV ads with the accuracy of targeting and measurability already seen in digital. FAST content also provides contextual placements with lower ad loads, to help create a more premium experience.

What are some emerging trends or opportunities in the TV advertising space that NZ brands should be aware of?

Streaming is no longer an emerging behaviour. Over half of New Zealand households own a Smart TV, and the growth of adoption is a clear indication that brands need to take advantage of Connected TV (CTV) advertising. When we talk about Connected TV, what we mean is any television set used to stream video over the Internet. Brands that are willing to learn about and invest in this growing media will reap the rewards and find themselves ahead of the curve.

Access to audience insights across total TV will be key to unlocking further growth in the CTV industry. Samsung Ads’ glass-level data gives us line of sight to everything that hits the TV screen. This data is powered by Automatic Content Recognition, or ACR for short, which gives us real-time insight into consumer behaviour and engagement across the TV, including linear, individual shows, streaming apps, gaming and more.

This technology is relatively new to New Zealand, but it is important because we can use it to target CTV ads against viewer interests, such as sport. It can also personalise the experience for the viewer, and crucially it can tell us whether an ad campaign has reached a TV set before. This means we can truly measure campaign reach and ensure brands don’t miss out on audiences they may not have been able to reach in other elements of their campaigns.

Collaborating with advertisers to position content and brands within the viewing experience, based on data-driven insights, is a growing trend. Ultimately, planning against real behaviours will enable advertisers to achieve better cost-effectiveness and reach across a highly fragmented market of viewers.

How does Samsung Ads see the role of connected TV evolving in the future, and what opportunities does this present for marketers in NZ?

Since the adoption of the Internet, no technology has proliferated faster than Connected TVs. 

Connected TV has become the entertainment hub of the household. On Samsung TVs, three in four New Zealand households spend their time in streaming environments, while one third of households watch no linear at all. Advertisers relying solely on free-to-air TV to get their brand seen are at risk of missing audiences. As advertising capabilities are being fueled by the growth of Smart TVs, marketers are being tasked to re-think their media strategy in the age of streaming to reach these untapped audiences.

The advanced technology and targeting capabilities of Connected TVs open up a whole new world of possibilities when it comes to deeper, richer engagement with consumers. Streaming audiences don’t just provide reach; marketers today can also target specific audiences on the best screen in the home, something that linear TV was unable to do.

By applying a data-driven marketing approach to the CTV environment, advertisers can solve a number of challenges like driving incremental reach, managing reach and frequency, competitive conquesting, and much more.

Advertisers should also explore creative ways to put their brand in front of viewers outside of the traditional TV spot. One of the most effective options is through native ad solutions on Smart TVs. These are ad placements built into the Smart TV environment, specifically designed to grab the attention of viewers before they head into non ad-supported environments.

What are the biggest challenges facing marketers in the TV advertising space at the moment in NZ?

It’s an unprecedented and challenging time for agencies and marketers in New Zealand. TV audiences are fragmenting, new ad-supported tiers are coming, and measurement is the elephant in every room. There is also no room for wasted budget, duplicated audience or missed impressions. 

This is opening up conversations in the market around how to manage reach and frequency, as well as the benefits of utilising ACR for valuable insights around audience viewing behaviours. 

We have a role to play in helping New Zealand advertisers plan against real behaviours, enabling brands to understand changing viewing habits, achieve better cost effectiveness and manage audience fragmentation.

How can brands work with Samsung ads to utilise its capabilities and create effective TV advertising campaigns in NZ?

One of the main use cases we have been working with New Zealand advertisers on is driving incremental reach. 

When it comes to advertising campaigns on linear or CTV, the truth is it’s not really an either-or debate. They can supplement and complement each other by using CTV to de-duplicate audiences and build out total reach by exposing more of the hard to reach audiences – such as light and non-linear viewers – to an ad they haven’t seen.

This allows advertisers to gain incremental reach. At a time when every dollar has to go further and every working dollar needs to drive outcomes, it’s a really efficient and effective way to maximise reach and reduce wastage. 

What has Samsung Ads been doing in NZ in the year since it launched? What are its plans in the coming year?

Over the past year, we’ve spent a lot of time in the market listening to challenges and discussing the role CTV can play. We recently wrapped up our CTV masterclasses with all the major agencies to discuss how brands can maximise the power of the screen.

We’ve delivered on our promise to enable ACR technology in New Zealand. Advertisers can now reap the benefits of having a holistic view across everything that is happening on our Smart TV screens. We also launched our native ad-solutions to help brands reach ‘the unreachables’ as soon as they turn on the TV and before they jump into ad-free environments. 

Samsung TV Plus, our free ad-supported streaming TV service content offering, has grown three-fold in that time and we now offer over 65+ free FAST channels in the market. As more audiences move to ad-supported or ad-funded environments our commitment to bringing premium and quality content to the service will only increase. 

In the last year we launched four exclusive owned and operated FAST channels, and Kiwis are responding positively. On Samsung TV plus we saw usage increase +39 percent in viewing time year-over-year. It continues to be the number one FAST app and a top three app overall on Samsung Smart TVs in New Zealand.

We’re working on a few new announcements to come over the next 12 months, so watch this space. It’s an exciting time for CTV in New Zealand. Working with forward-thinking and innovative partners across New Zealand we’re ready to help lead this evolution of the TV and media landscape.

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