Personalisation vs privacy: Finding the right balance with CTV

CTV has become a critical part of television inventory. But given its reliance on data for targeting, how does it fit in a privacy-conscious world?

Connected television (CTV) is rapidly emerging to challenge traditional media buying habits of Asia Pacific’s top brands. Driven by the last decade’s explosion of video-on-demand (VOD), CTV allows brands and agencies to buy highly targeted audiences across a vast spectrum of content and platforms. However, like with any data-driven buying, CTV may throw some privacy and compliance hurdles in marketers’ way.

Since the mass production of television sets in the 1960s, TV has served as one of the most powerful tools for brands to reach and deliver their message to viewers. However, in an age of multi-screen consumption, smart TVs, streaming and ad-supported VOD, marketers and agencies are rapidly shifting their advertising spending away from traditional TV buying.

CTV allows digital buyers and programmatic traders to purchase ad placements and audiences across this multi-platform ecosystem. As a result, brands can align with modern audiences’ viewing habits and preferences, driving better results and return on investment.

The rise of CTV is evident in the numbers. Linear television ad spending in APAC has significantly decreased since 2020 and is expected to further decline in the upcoming years. In comparison, there has been a 15% year-over-year rise in open programmatic CTV ad spending in the APAC region.

For marketers, CTV brings the best of both worlds of TV and digital advertising. Like traditional TV, CTV generates mass audience numbers. However, in addition, CTV boasts the targeting power of digital buying, leveraging data and contextual advertising to deliver the most relevant content to audiences. As a result, brands should gain higher engagement, better attribution and improved return on investment (ROI).

However, much like other digital channels, CTV is facing privacy, data and identity concerns across the world. In particular, these significant privacy issues primarily relate to the collection and utilisation of consumer data, whether it’s from IP addresses or third parties.

Each individual APAC market has their own regulations and legislations on privacy and data security, each differing significantly from each other. A lot however are following the European Union’s General Data Protection Regulation (GDPR) which is arguably one of the most stringent privacy legislations currently in place.

Given this complicated setup, APAC brand marketers may find themselves in a minefield of privacy compliance regulation. This occurs especially when data is gathered without user consent or knowledge and then shared with third parties without explicit consent.

Additionally, the use of third-party cookies raises concerns due to their ability to track users' browsing history across various sites and potentially compromise privacy. To mitigate these concerns, advertisers should clearly communicate data collection and usage practices to viewers, offering opt-out options.

Advertisers can also utilise first-party cookies or their first-party data to engage with the consumer base who have consented to advertising from their brand. The use of first-party data will also become more paramount as Google sunsets third-party cookies for Chrome this year.

Last but not least, advertisers can address these concerns head-on by using specialised technology to create precise, compliant and high-return CTV solutions.

For example, solutions such as Crimtan's cookieless approach, ActiveID, combine deterministic, probabilistic, and signal data to establish robust identifiers, ensuring broad audience reach with consent. Crimtan can also assist in analysing first-party data, identifying targeting signals, implementing frequency controls, and exploring retargeting options.

In the digital era, the most effective campaigns are those precisely tailored to fit the unique profiles, interests, and preferences of their target audience. Likewise, successful CTV ads come from identifying the right customer at the right time and place and with the right messaging. These all require customer insight. As such, first-party data is now the best tool to customise advertising strategies, create compelling content and reach customers more efficiently.

CTV represents more than just a passing fad; it presents a chance for marketers to diversify their media investments and ensure they are set up for audiences’ current and future viewing habits.

Smart TVs and digital video will soon become the norm for APAC audiences. Prioritising and strategising for safe, compliant CTV now will set brands and media agencies at a significant advantage against their competitors. The amount of digital content available is also endless – and so too are the opportunities. Acting as a bridge between traditional media buying and the digital realm, CTV awaits marketers' embrace as they navigate this transformative journey.

This article was written by Joshua Wilson, commercial director, JAPAC of Crimtan