CTV ADVERTISING LAUNCHES ALSO ON THE CZECH MARKET

Video advertising on large screens of smart TVs (CTV) is starting to interest domestic advertisers as well. Within two years, its possibilities could become more widespread, a meeting between Adform and Tivio suggested.

The CTV phenomenon is also taking hold in the Czech advertising market. Despite the strong position of linear TV advertising, there is a growing number of subjects and channels where video streaming advertising on large internet-connected TVs (CTVs) can be used. This emerged from an expert meeting between Adform and Tivio last week.

CTV advertising is one of the fastest growing advertising channels, along with retail media, social media and search advertising. Omdia estimates that online video is the largest and fastest-growing media platform with volume expected to reach $330 billion by 2029. That's roughly one-third more than this year and more than double the amount in 2020. Subscription revenues from video streaming and pay TV follow close behind.



Meanwhile, a majority of advertisers (56%) in the Central and Eastern Europe (CEE) region are already considering using CTV advertising, Michael Stadler, country manager for the Czech Republic and Slovakia at Adform, mentioned at the meeting, based on DV/IAB Europe data. This is higher than in other European regions. In Western Europe, the consideration percentage is 45%, in Southern Europe 47% and in Northern Europe 33%.

This is due to changing user and customer behaviour in addition to technological developments. The share of digital video in total viewership in the US market alone has been growing since 2020 and is expected to surpass the share of linear TV for the first time this year. More pronounced changes are visible among younger viewers aged 18-34, who are shifting more rapidly to digital video.

However, there are differences in the evolution of CTV between markets. "The situation in our country is not yet like that. Advertisers' investment in advertising on channels into the Nova Group and Prima Group is growing, prices are increasing due to break sell-out, and even then breaks are getting longer. It is not easy to get on air during the season, so we see CTV as an interesting opportunity," he described.

For this year, spending in CTV advertising at the global level is estimated at $35 billion, about a quarter of total spending in linear TV. This year, spending into CTV is expected to increase by a fifth year-on-year. The growth of CTV advertising is helped by the fact that global video streaming players such as Netflix and Disney+ are opening up their advertising space. At the same time, almost every smart TV manufacturer (Samsung, LG, Xiaomi) has its own operating system within which advertisers can also present themselves.

According to available data, more than 3 million users aged 15-69 use streaming video services in Czech Republic (source: ResSolution Group). On average, they spend 1 hour and 6 minutes per day streaming. The biggest ones are Netflix, Voyo, Disney+, Max, Prima+, Prime Video, Skyshowtime and Paramount+.

The second half of the year, however, indicated that CTV advertising is starting to be discovered by domestic advertisers. Adform executed its first programmatic campaign in linear TV in the Czech market this September. The client was ČSOB and the CTV ad appeared on the DVTV Extra channel. It was made possible thanks to cooperation with Tivio. The latter is DVTV Extra's partner for campaign measurement and implementation. DVTV Extra has been on terrestrial air since November, which should help increase its reach. Further expansion of distribution is then expected in the new year.

Currently, programmatic TV advertising can be bought on prima+, SkyShowtime, Rakuten TV, R2B2 in addition to Tivia on Hbbtv and through global SSPs such as PubMatic and Magnite. From Slovak TV on TV Joj and TV Markiza. Advertising space with global players such as Netflix or Disney+ is not yet open in the Czech Republic. However, it is expected that this could happen in the next two years. This will increase CTV's overall inventory offering.

Currently, according to Ladislav Navratil, co-founder and CEO of Tivio Studio, the size of inventory for programmatic ads in linear TV is at 20 million impressions per month. CTV advertising can also be purchased on the Sports TV and Kviff.TV TV channels, in addition to the aforementioned DVTV Extra. Tivio also expects to expand and new players to enter the market next year, he said.

According to the speakers, the main benefits for using CTV advertising, which is characterised by the consumption of content on large TV sets, are to be the quality of the inventory, the possibility of targeting and integrating CTV campaigns into the advertiser's overall online communication, the possibility of setting up campaigns on different KPIs, the new formats that CTV brings and also transparent reporting.

Source: mediaguru.cz