There are a number of consumer trends that were born out of the COVID-19 lockdowns – and some which were rapidly accelerated by them too. One of the big questions is, which ones will stick around?

Viant CMO Jon Schulz recently told Forbes that one of the "clear standouts" is both the consumer adoption and the advertising investment in connected TV. "The growth here has really accelerated during recent months. Most advertisers point to the advanced audience targeting, large and growing consumer reach as well as the wide array of content, all of which have been in contrast to traditional TV." He said he expects the growth trend to continue post-pandemic.

But what's the state of connected TV in Canada? It might be tough to pin down, since the definition of connected TV itself can be slightly nebulous. CARD weighed in with two connected TV experts – MIQ's SVP of commercial Jason Furlano and Veerle de Lobaerde, SVP of Finecast (which was recently brought to Canada through a partnership with GroupM) – to discuss where the medium is headed and what the advantages are for advertisers.

(Note for readers: the common global abbreviation for connected TV is 'CTV,' however in order to avoid confusion with the Bell Media-owned network, CARD will refer to the medium in full.)

What is connected TV, exactly?

Furlano (pictured left) says, "Connected TV refers to the device on which someone watches the video." While this can seem to overlap with OTT, Furlano distinguishes it by specifying, "The methodology through which it gets to someone is OTT, and connected TV is the device itself."

De Lombaerde's definition is broader. "Connected TV is currently being thought of as anytime you are consuming broadcast-quality programming on any screen," she says, adding, "But that doesn't do any favours to our collective understanding of the tactic and value." She agrees that Canada needs to get a "more narrow definition of connected TV that focuses on the TV viewing experience and everything that comes with it." She says conflating the reach and shared viewing power of a big screen, living-room TV scenario versus consuming broadcast-quality mid-form shows on a tablet or mobile phone is somewhat of an apples-to-oranges scenario. When broadcasters or other connected TV inventory owners bill them as apples-to-apples, she says, "The value given to the advertiser isn't equal and disrupts the ability to accurately measure the big picture."

Connected TV ads are almost entirely bought and sold programmatically.

What ad options are available in Canada?

Canada has fewer OTT options than the U.S., particularly when it comes to ad-supported – American ad-supported OTT platforms include Hulu, Quibi, Crackle, Tubi, Pluto TV, YouTube TV, Amazon's IMDBtv, the soon-to-launch NBCUniversal streamer Peacock and many smaller players. While Canada doesn't have quite the same array – Quibi recently launched in the market, and carries a more limited offering on Tubi and Pluto TV – in the last several years all the major broadcasters have launched streamers that all fit the common industry definitions of connected TV.

There's authenticated broadcaster apps for the likes of Citytv, CTV and Global, which allow registered cable subscribers to tune into playback of key shows. Then, there's additional, ad-supported VOD, like CTV's Throwback and Movies platform, Corus' StackTV (which contains ads on its live TV service) and CBC's Gem. There are additional smaller or niche players as well. The broadcasters' digital platforms allow for dynamically inserted ads, which are thus more targeted than a conventional TV buy.

Furlano says the broadcaster in Canada "have a lot more control than in the U.S., where it's a bit more of a wild west." He points to Bell Media and Rogers Sports & Media, both part of vertically integrated companies, who by their nature have access to more data at a household level. Bell Media has used that anonymized, privacy-compliant data to fuel its advanced TV buying platform, while Rogers also created Rogers Enabled Data (RED) last year.

Another reason Canada might be in a better position than the U.S., says de Lombaerde, is that there are fewer players in the space here. "As we have a limited amount of broadcasters, it's not nearly as complex [as the U.S.] to implement the infrastructure needed. Plus, this smaller circle allows for more collaborative relationships and interest in growing the industry together."

Why buy in (and how much will it cost)?

Global firm Innovid found that around the world, connected TV impressions grew by 67% year-over-year. Advertiser engagements are also growing, according to the firm, and most (57%) of the ads are 15 seconds long, making them shorter than a typical television ad.

Big firms known for their ad spend forecasts like GroupM, Magna and Zenith rarely break out specific investment predictions for the space. However, third-party studies and analysts from groups such as eMarketer have continued to put it in a growth position.

Connected TV CPMs can vary slightly, but is generally regarded as three to five times more expensive than a standard digital video placement (such as a YouTube preroll ad). Numerous sources have put CPMs at upward of $65. However, some have noted a recent dip in CPMs at the beginning of the pandemic, and MIQ's own data showed that between Feb. 17 and March 18, there was a 42% increase in available inventory on connected TV (with the majority of inventory becoming available after March 11). Still, the future could be bright for programmatic, ad-enabled OTT. In the U.S., a recent study by the IAB – which revealed its results at the recent NewFronts – found that 53% of respondents would be moving at least some of their linear TV investment to connected TV.

Furlano says the biggest advantage of connected TV investment is access to the audience itself. "The audience in some cases consists of people who are not watching in a linear fashion anymore, so there's that built into the nature of the platform itself."

However, he says, the digital nature of ad-enabled OTT gives it the ability to plan and measure more accurately. Many of Canada's connected TV buying platforms utilize additional analytics and data from partnerships such as Environics and NLogic, and aren't measured on GRP models. There's more flexibility to track acquisition. "If I serve an ad on a connected TV app and notice that a device connected in the same house went onto the IKEA website and shops for a wardrobe, that's different from historically on linear TV, where you put an ad into the world and you hope that somebody goes into your store."

He adds that the biggest advancement driving ad-enabled OTT growth in Canada is that there's much bigger device penetration. Currently, he says, 36% of Canadian households have an internet-connected TV. By early 2021, he says that will grow to 45%.

But de Lombaerde says connected TV can still be difficult to execute on. "It's a complex ecosystem made up of a variety of different partners and platforms – all delivering, tracking and measuring in their own way," she says. It's part of why both Finecast and MIQ – competitors in the space – have launched connected TV buying platforms, both with a goal of streamlining the buying experience.

For Furlano, he says the biggest misconception he'd like to clear up is that the inventory isn't valuable or that the content isn't high-quality. "Eight years ago, when the penetration of connected TV was minimal, no one was building quality apps to consume content on. But cord-cutters and the commercial success of Netflix and Amazon have really helped push it to a more sophisticated area." She says that because buying is programmatic, there can sometimes still be concerns around brand-safe placements – like an ad appearing in the middle of an R-rated movie – but that there are an increasing number of partners, such as Integral Ad Sciences, that are dedicated to that specific practice.