Last month, IAB Canada hosted two significant events that delved into the world of “Reach”. The first was a cross-council panel discussion about the rise of audio and “theatre of the mind” in the context of reaching mass audiences. The second, took place last week at our 2nd annual The Business of Digital Reach event where we were not surprised to see video taking centre stage. Our esteemed speakers spoke of the potential of the channel and got into progressive conversations about measurement and standards. We were grateful to catch up with one of our featured speakers, Samsung to ask about their “Rule of 40” strategy.
“In the last two years, there has been significant growth as audiences in Canada adopt ad-supported streaming or AVOD while continuing to cut the cord and shift away from linear viewing. We are now at a tipping point as Canadian TV audiences embrace streaming, and advertisers now have access to much more advertising scale and premium inventory with AVOD than ever before. In fact, Samsung Ads developed The Rule of 40, as an easy rule of thumb strategy to help brands reach linear-only and streaming-enabled homes.
When 40% of a brand’s media budget is allocated to AVOD, total TV delivery can achieve better parity and balance. In contrast, when 100% of budget is allocated to linear, then linear-only homes are over-indexed by ~2x and reach against the mostly streaming audience is under-delivered by 81%††.
Our research reiterates that while the number of people emerging on Connected TV is known, a corresponding shift in advertising dollars isn’t migrating to follow viewers where and how they consume content. Savvy Canadian marketers who have seen this massive shift in consumer behavior and consumption are realizing they need to think about how and where they allocate their media planning and activation. Samsung Ads provides a holistic view for brands and advertisers, connecting linear, CTV, gaming, and more to reach target audiences. Advertisers can leverage these insights to strategically buy media across TV, mobile, and desktop,” said Derek Fung, Sales Manager, Samsung Ads Canada.
IAB Canada is planning a cross-council panel discussion in the coming weeks on the power of CTV and look forward to having our community participate in this candid forum about the future of video.
If you would like to join the conversation, please reach out to committees@iabcanada.com.
*Source: Samsung Proprietary ACR. Streaming and Linear Share of TV Universe, Q2 2021. Streaming is viewership in Smart Hub TV Apps. †As reported by eMarketer using the GlobalWebIndex data released in August 2020.††Samsung Ads Rule of 40 Model, US, 2021. ±Subject to our privacy policy, and customer choices.