How PHD guides clients through the new world

Catherine Sullivan is the U.S. CEO of Omnicom media agency PHD. Here she describes how she and her agency advise clients on how to approach the fast-growing connected TV market. Yiğit Yücel, YouTube ads marketing manager at Google APAC, shares additional APAC insights.

The way we watch videos has changed. Viewers, not networks, are choosing what appears on their television screens. For me, that means catching up on clips from my favorite late-night shows before squeezing in a quick guided workout. Those are two very different pieces of content – both meeting my personal needs at the right moment for me. Why would I go back to linear TV? Why would anyone?

The following shows how PHD is guiding clients through the connected TV landscape and provides some insight into how the space is redefining our viewing habits. It also covers what we tell them about the way brands should approach these evolving market trends.

Connected TV is redefining television
After a higher-than-expected spike in 2020, digital video viewers in Asia-Pacific will rise 6.5% this year to 1.93 billion. Digital video viewers in the region will exceed 2 billion by 2022, a year earlier than previously projected. Connected TV is a major factor driving this evolution, offering viewers the same level of choice and control on their television screens as they have grown accustomed to on their tablets and phones. This is not a year to take incremental or baby steps when it comes to how you’re going to spend your money on media. If you don’t take that massive leap forward and invest in streaming, you could be left 10 years behind.

People have changed the way they think about streaming and the way they define television. For instance, according to Talk Shoppe, users in Australia are most likely to say their definition of “TV” now includes YouTube and streaming services like Netflix and Stan. 1 Over 25% of logged-in YouTube CTV viewers in Australia watched content almost exclusively (> 90%) on the TV screen. 2 To many viewers, television no longer means something that’s slickly produced. For Aussies, YouTube is the number one platform for providing personal and relevant content. 3

People are also spending more time watching YouTube via TV screens. Viewers in Japan watch YouTube videos that are on average 10% longer than videos viewed on mobile or desktop, and each viewing session is more than 60% longer than that of other devices.4

When people are choosing what to watch, they’re just as likely to check in on their favorite YouTube creator as they are to embark on the latest network series. I tell my clients that they need to start looking at audiences – not only who they are, but what their preferences are – and go where the growth is.

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