The following is a guest post from Gijsbert Pols, project strategist at Adjust. Opinions are the authors' own.
The impact of the very turbulent half of this year on the digital economy is still unclear in many ways, but one thing can be said for certain: Over-the-top (OTT) platforms have seen a huge surge in both subscribers and engagement.
All around the world, more and more people are consuming series, shows and live events via the internet, bypassing traditional intermediaries such as broadcasters. And they do so using very different devices: connected TVs, computers, gaming consoles and mobile devices.
This surge in usage is already enough to make OTT a very powerful source of user acquisition and retention for mobile marketers. But OTT has a far bigger potential. OTT allows for whole new dimensions of holistic campaigning, interactivity and ad formats. Even augmented content is already a reality.
The question that remains, though, surrounds how are we going to measure the results?
The challenge
The measurement challenge is a huge one, because it will have to be cross-device to a large extent. When mobile marketers utilize the full potential of OTT, a substantial amount of their ads will appear on connected TV. However, the impact of these ads is happening on mobile phones. Making a direct link between those two device types is hard.
This need for cross-device measurement comes at a difficult time. Privacy regulators are keeping an ever closer eye on measurement techniques and consumers are more wary of whom they share their data with. Companies can no longer exploit personal data and need consent to measure ad impact — and rightly so. That means there is no easy way out by passing around user IDs or applying so-called identity graphs anymore.
Traditionally, TV advertising has been measured probabilistically. Roughly, this means one would compare whether a group of people who had seen an ad would buy more products compared to a group of people not exposed to an ad. While this approach can be very sophisticated, it does not fit very well with OTT and mobile marketing. This is because most OTT is on demand, making it difficult to define groups and control groups.
What makes defining groups even more difficult is that OTT will not be the only channel via which mobile marketers advertise. On top of that, mobile marketing is an ongoing process, in which user retention is just as important as the initial acquisition. Users need to be reached out to again and again.
The solution
So what does work? It is important to realize that a significant segment of the OTT ad impact will not be cross-device. Consumers use mobile phones for OTT and the impact of ads in this scenario can be measured like for any other ad on mobile devices. Mobile marketers who want to explore the potential of OTT are well advised to start with advertising on mobile devices first.
But there is more. The IAB Tech Lab has been building the so-called OTT IFA, which is basically a protocol that allows for data standardization and campaign measurement. The more OTT services, marketers and intermediaries start applying this protocol, the more effective measurement will become.
In general, OTT measurement will require collaboration. Now, the good news is that the basis for this collaboration is already there: all parties involved want a fair economic exchange and to be able to explore the potential of advertising via OTT.
We also share an interest in building consumer consent. Together, we need to develop a narrative that explains why measurement of ad impact is vital, for OTT services, for marketers and, in the end, for consumers as well. And we need to utilize the full creative and interactive potential of OTT advertising, to make sure potential app users get a unique ad experience.
Given the delight people find in both OTT and mobile apps, I believe that is more than doable. In fact, I think it is going to be fun.