Connected TV: The future of identity and the power of audiences

Samsung Ads' Rule of 40 helps brands understand where and how to invest their media dollars

Media in Canada_Byline #2 ImageryAs brands, marketers, and advertisers move away from cookie-based attribution and focus more on audience-first methodologies, it’s not just the concepts of media measurement and data collection that are rapidly changing, but an evolution around where and how advertisers should be spending their money.

With that in mind, Samsung Ads has developed a methodology called the Rule of 40 – born out of research from Nielsen in the U.S. coupled with Samsung Ads first-party deterministic data – that is increasingly being applied here in Canada.

The Rule of 40 examines the amount of money advertisers are investing in linear TV versus Connected TV (CTV), those who primarily stream content. “It’s a model that states 40% of your budget should be directed towards Connected TV in this day and age,” Dave Pauk, regional sales director, Samsung Ads Canada, explains. “If you’re not spending in that range on Connected TV, you’re missing a sizable portion of your target audience.”

It reflects the idea that, while the number of people emerging on CTV is known, a corresponding shift in advertising investment hasn’t followed viewers to where and how they consume content. Pauk compares the shift to CTV to how advertisers made the transition to mobile. While audiences were using that channel more and more, “advertisers were slow to shift dollars, until it got to the point where they had no choice but to invest in mobile advertising.”

As to why there’s so much opportunity in CTV, Pauk points to the importance of first-party data. While the phaseout of cookies may seem to further deprive the advertising ecosystem of much-needed data informing media tactics, it’s really just a sign of how important a first-party data strategy is moving forward.

“Privacy has always been at the center of what we do in terms of capturing data,” says Dave Pauk, regional sales director, Samsung Ads Canada. “And we are up to 3.5 million opted-in Smart TVs,” he adds, noting that is a 34% increase over the past two years.

“The data is contained within the Samsung ecosystem. We don’t commoditize it or monetize it in any way outside of our own environment.”

Combine the number of TVs and the associated Canadian families using them, Samsung Ads’ Automatic Content Recognition (ACR) technology can “capture what is happening at the glass level of our TVs, whether you’re watching content through your [gaming platform], streaming stick, PVR, or set-top box,” Pauk says.

In other words, it’s a privacy-compliant way to get insights into viewing behaviour across CTV and OTT alike, allowing advertisers opportunities to take advantage of a holistic view of a user’s consumption and behaviours only within the Samsung ecosystem.

Samsung Ads’ ACR capabilities create a contextual offering, providing a way to target audiences in a privacy-centric manner, based on their ad exposure. For example, if someone sees an automotive ad, Samsung Ads can help  advertise to that consumer as well as identify and target similar audiences .

“Alternatively,” Pauk adds, “a lot of brands are excited about driving incremental reach,” and being able to understand who has seen their ad through a linear channel, “and targeting those users that haven’t seen the ad and reaching them through connected TV and other addressable devices.” Samsung recognizes the importance of complying with privacy laws and consumer choice with respect to privacy. As a result, brands can feel confident that when reaching out to consumers it is in compliance with applicable privacy laws.

As a result, post-campaign examination provides data and audience insights that help lead to a more complete understanding of a type of household. What genre of shows they watch? Are they sports fans, heavy streamers or gamers? The learning ultimately has been valuable in helping brand marketers inform their future strategy according to Pauk.

As the OEM, Samsung is also able to collect device-level insights. “We can identify if your TV is connected to the internet through Rogers, Bell or Shaw,” Pauk says. “Through the IP address, we can see what other devices are likely connected to that same IP address within a household,” he adds, noting that it can introduce a more holistic level understanding of the content, services, and devices that are being used to consume content.

Ultimately, with CTV and Samsung Ads, Pauk says advertisers get the best of both worlds. “On one side, you’re getting the biggest screen in the household, a non-skippable full-screen, co-viewing experience for your advertising that linear brings, but you’re also getting the accuracy and granularity of targeting and data on the digital side of things.”

To learn more about how Samsung Ads is paving the way for the future of identity in CTV, visit our social channels on LinkedIn and Instagram, websiteor reach out to adsales@samsung.com