The IAB host a varied programme of events each year to help their members navigate the latest innovations in digital advertising, celebrate the best of our industry and prepare for the future. Representatives from Merkle attended their Digital Upfronts in October to catch up on the latest developments in CTV, retail media, and gaming.
CTV’s explosive growth
2023 marked the very first IAB CTV Upfront, such is the scale now in both interest and investment in this evolving channel. One informative discussion led by Rakuten addressed concerns about CTV. Generally, concerns can be bucketed into three categories: ad fraud and invalid traffic; transparency in choice over ad placement; and effective measurement. Rakuten argued that all three are already being addressed. Ads in CTV are most commonly served using SSAI – server-side ad insertion – tech where ads are stitched into a video steam before it loads on a user’s device. While this is positive for user experience, it can be a fraud risk, adding an additional layer between a publisher’s tech stack and the end user’s device. To combat this, publishers are offering increased transparency and tracking so buying teams can vet the source of supply. Indeed, transparency and safety in ad placement are ultimately a factor of who is serving your ads, so working with reputable CTV partners who run across a finite list of trusted, high-quality publishers should alleviate most concerns. Measurement is also coming on in leaps and bounds, with solutions like the Audience Project and cross-channel BLS helping marketers to determine the incrementality they can drive via CTV versus traditional media like linear TV.
It is this incrementality promised by CTV audiences that is the most obvious selling point. By investing in the Women’s Champions League, DAZN generated over 100M views in the first 2 years, giving visibility to a previously marginalised women’s sport while reaching new, diverse audiences. Similarly, their investment in crossover boxing where traditional boxers fight YouTuber’s has unlocked a new incremental demographic of 13-19 year olds. KSI’s latest fight against Tomy Fury sold 1.3M pay-per-views, a figure which places it right alongside those seen in traditional heavyweight boxing. Sky also spoke about their approach to incremental reach, operating a global strategy with local execution, partnering with local broadcasters and publishers in each market to better reach new, diverse audiences with content that appeals to them.
As well as generating incremental reach, this focus on quality content is what will attract and maintain viewership. Vevo discussed the diversity in their content categorisation, with categories like Out Loud focusing on the LGBTQ+ community and Afro Pulse elevating black creators. DAZN is investing in women’s sport precisely because interest is growing exponentially, and they are at the forefront of that movement. NBC Universal and Sky select local partnerships not just to reach new audiences, but because local broadcasters and publishers know how best to design content that appeals to their audience. And Formula 1 know that only 1% of their fans globally attend an actual Grand Prix in real life, so there is a necessity at every race to produce high-quality streamed content for the legions of online fans.
The evolving frontier of Retail Media
The continued growth of Retail Media and the consequently exciting uncertainty still surrounding this topic was reflected in the event discussions. Indeed, the initial talk led by Amazon aimed to debunk current popular myths, starting with demonstrating how Retail Media should not just be viewed as a performance channel, but as a medium that has a place across the funnel, helping to drive awareness through such formats as video to drive incremental reach and sales growth (Mr Muscle as a client anecdote was referenced to add further credence to this statement). Further myths were then tackled, showing that the cross-channel impact of Retail Media could be measured, and that Retail Media could be used even if you don’t sell a product through a store (both of which were heavily tied to Amazon’s propositions respectively in the Amazon Marketing Cloud and Amazon insights usage across Amazon products such as Freevee or Twitch).
Much of the discussion was focused on the impending widescale adoption of retail media – and therefore how retailers offering advertising could look to differentiate themselves as spend scales. The solutions include retailers focusing on placing an emphasis on who their network is intended for, looking at how their in-store media is digitised and personalised through their data insights, and at how they create that trusted value exchange with the consumer to ensure the giving of that data adds to every stage of the increasingly omnichannel Shopper experience to build that long-term relationship.
Such conversations lent more broadly into increasing validity to the notion that Retail Media is only going to expand and become accessible to an increasing number of brands (significantly to those that are also non-endemic). Whilst central issues still need to be addressed in the retailer space such as the standardisation of activation and first party data usage, the development of the tech to enhance ease of use and the need for collaboration between retailers (as they do in the US), brands can certainly get ahead by thinking about how they want to work in this space. This not only entails that same strategic thought as is relevant to retailers around the shoppers they want to target, their creative, and how they want to make use of that rich retailer first party data across their media channel activation, but also the readiness of their internal team structures so that it fosters collaboration between brand, shopper and marketing teams. As stated by one of the panellists, in response to ‘who is taking who out to dinner?’, the tide has now turned into a situation where the retailers are taking out the brands, and the latter should therefore ensure they are as prepared as possible to harness the opportunities available that will meet their unique brand propositions and objectives.
Why in-game advertising could be for you
The gaming industry is poised for continued growth, driven by advancements in technology, increased accessibility, and the rise of mobile gaming. As the industry expands, so does the potential for in-game advertising. The Gaming Upfronts showcased to brands and advertisers alike that embracing the channel at this stage can establish a competitive advantage and position their brand for long-term success.
Throughout the entire event, it was clear that setting aside the stigma or at least the seeming barriers to entry for clients was the core focus, with panellists attempting to address any hesitancy. Ad formats for in-game advertising can often deter clients, as a complete revamp of their assets comes to mind, but audio was positioned as an easy way to enter the space according to Odeeo’s Rohan Premnath. Unlike other ad formats that may interrupt gameplay, audio ads can be seamlessly integrated into the gaming experience. This non-intrusive nature ensures that the ad does not disrupt gameplay and maintains a positive user experience. It can also be the same audio ad used in radio or audio activations but as with any environment it must add to the experience of the consumer.
As discussions around the Attention Economy evolve, gaming is being touted as a channel with strong potential for attentive reach. Dentsu’s Ed Manning and Erik Bogsnes from Lumen expanded on the partnership the two agencies have built, in transforming the way the advertising industry sees attention as a metric for gaming. From a report released by Lumen In-game ads drive 98% viewability versus Lumen’s digital ad norm of 78%. But it’s not all about viewership. Contrary to the notion that gaming ads may not align with clickable success metrics, GADSME - outside of what was talked on in the panels – have dispelled this misconception through its research on intentional clicks versus non-intentional clicks, by delving into how users interact with their devices when playing games (such as swiping their fingers on the screen to perform actions in-game vs. when they are intentionally navigate ads). A brilliant example of where clicks turned out to be a success is Activision’s partnership with Prada where although the success of the campaign was orientated to awareness and favourability they saw a +1,813 % increase in web traffic and 6.6% click through rate through an integrated playable format that rewarded the player.
Five gaming trends were presented by Nicola Clarke, Account Director at Twitch - the most intriguing of which was the emergence of 'cosy gaming’ and how this opens new avenues for brands to communicate with their audience. By embracing this trend, brands can create tailored experiences that resonate with gamers seeking relaxation, comfort, and immersion. Whether it's through in-game sponsorships, branded live streams, or interactive content, brands can transform their communication strategies with innovation and engage consumers in ways they wouldn't expect. One exclusive from the event was Venatus and GWI sharing a report that has a plethora of insight on gaming consumers, such as the fact that across markets 42% of gamers engage with some form of additional content on a weekly basis, be that game reviews, news/updates or live streams. This demonstrates why gaming is a sandbox of endless possibilities ready to explore for advertisers and brands alike.
With dedicated AV, retail media and programmatic teams, Merkle have industry-leading expertise across all three areas of advertising – and we would love to talk to you about how we can support your media in these spaces. Please reach out if you’re interested!
