Interviews, insight & analysis on digital media & marketing

The dream team of YouTube and CTV

by Rob Blake, Country Manager UK at Channel Factory

YouTube, now offering billions of hours of content, is becoming one of the largest entertainment providers alongside streaming services. Today, Broadcast TV is no longer the sole provider of video content. The continual growth of CTV will add fuel to the flames of YouTube and streaming services – by 2023 it is expected that over 75% of Western European households will be using CTVs.

As CTVs and YouTube rise in popularity advertisers should take heed of these trends and get ahead of the curve. Could YouTube and CTV become the two greatest tools in their toolkit?

Broadcast TV’s popularity is on a slippery slope

Since 2013, the popularity of Broadcast TV has decreased particularly among the younger generation aged 16-34. This demographic has seen a 60% reduction in Broadcast linear TV viewing from 2013 to 2021. Despite this damning evidence, a Comcast report still advises advertisers to spend a minimum of 70% of their budget on broadcast television.

Many advertisers are yet to look at all these trends in one video content ecosystem and see the opportunities it provides. Redistributing their budgets, rather than putting all of their eggs in one Broadcast TV basket, could yield a far greater return on investment.

YouTube, renowned for fast-growing hours of content and providing viewers with the world’s greatest flexibility and choice is something Broadcast TV cannot offer. 

Less flexibility and less accuracy mean advertisers cannot target key audiences and add emphasis to their authentic messages. Broadcast TV has a broad audience collected in one place but big numbers aren’t everything. Often, targeting a smaller but more specific audience leads to higher engagement and attention from viewers. All advertisers understand the following equation, higher engagement = greater ROI. 

CTV – No longer the new kid on the block?

If advertisers desire greater advertising opportunities, they must look to CTV, especially considering that 68% of individuals in the UK have access to smart TVs in their households. Advertisers will have the reach and audience size of Broadcast TV, but with the targeting and flexibility of CTV and YouTube. 

The number of CTV apps available on the Roku Channel Store, Apple TV OS App Store, and Amazon Fire TV increased by over 38% year-over-year in 2020. With such a wide array of content and services for advertisers to choose from, they can more accurately align with content and audiences for each specific campaign. Audiences can be easily targeted and diversified, demonstrating why CTV  is seen as the primary challenger to Broadcast  TV advertising hegemony.

The match made in heaven

Wallace and Gromit. Cheese and crackers. YouTube and CTV. All great things come in pairs. Combining CTV and YouTube means advertisers can concoct the perfect advertising duo. YouTube already represents 26% of daily video consumption for young people aged 16-34 compared to only 20% for commercial broadcast TV. Moreover, the total number of YouTube videos viewed by UK online adults was 22% higher than in Q1 2020.

YouTube provides advertisers with immense flexibility and targeting. Brands can diversify their audiences using YouTube’s vast amount of data, content and number of content creators. Inclusion lists can be developed so brands can reach diverse audiences with their content and support a diverse range of creators – which ultimately adds authenticity to their message whilst ensuring they reach every part of their audience. Social responsibility is key to many brands. YouTube advertising and inclusion lists add actions to their content, and deeds to their words. Significantly, YouTube Ads on CTV drive a 10% greater lift in recall than ads on Broadcast Linear TV.

YouTube and CTV can be an effective one-two advertising punch for brands. Increasing popularity, audience targeting and diversification come together to increase engagement for a wider audience making CTV advertising a must-have for all advertisers. In order to drive home authentic messages, support audiences and maximise ROI, advertisers must reflect on their recent advertising spending and question the emphasis they have placed on CTV and YouTube’s role within that.