The global supply chain is under strain as the world emerges from the COVID-19 pandemic. From microchip shortages to delivery delays, brands are under enormous strain to keep up with consumer demand with limited products and reduced labor, particularly as we enter the holiday shopping season. And supply chain issues may stretch into 2022. Tim Uy of Moody’s Analytics said that the problems caused by disruptions in the supply chain will “get worse before they get better.”
For many brands, the first priority is product-oriented. They must figure out how to produce and ship products to meet demand. At the same time, advertising is a powerful lever that marketers can pull to help the bottom line.
When managed strategically, advertising budgets can be apportioned to minimize costs, and manage demand. With so many brands moving to CTV in order to reach consumers that have shifted to streaming media, biddable advertising can be a safe haven for brands. While the product supply chain is in chaos, optimizing the CTV supply chain can help keep growth plans on track.
Performance Marketers Find Flexibility
As early adopters of biddable media, performance marketers are well equipped to measure the direct effect that their advertising has on sales. With this knowledge in hand, performance marketers will find that moving more budget into a biddable market gives them immediate control over demand for their products.
It also affords more flexibility to tailor messaging and targeting based on product availability and regional logistics. For example, an e-commerce shoe retailer with an excess of warm weather shoes can target southern states to move relevant products. Once deliveries for fall and winter products come in, they can quickly move their spend to reach customers in colder weather.
Biddable CTV inventory is also valuable for its “insurance value.” Even the best-laid plans can be sidelined when the supply chain doesn’t come through. For performance marketers who manage a close balance between inventory in house and advertising costs, being able to dial spend quickly up or down can help to ensure that demand is in line with supply even within a short window.
Premium Brands Save on CPMs
For brands that use CTV inventory for brand advertising, biddable inventory can provide a much needed break on costs. Car companies, for example, are experiencing major delays in product delivery for high priced items. Without immediate income, these brands can help reduce costs by moving money to the biddable market where it’s easier to control costs with maximum bids and controlled volume spending.
At the same time, brands like car companies, appliance retailers and electronics manufacturers need to keep their audience interested. Biddable CTV gives brands an efficient way to stay in front of customers while supply is low so that they are top of mind when the customer is ready to make a purchase once supply is available. CTV provides highly relevant contextual brand advertising options that are also affordable, so that brands can stretch their dollar and reach those customers as they ride out the shortage.
Brand Advertisers Focus on Net-New Audiences
CTV is also a major opportunity for brands to reach new audiences like “cord cutters” and “cord nevers” who aren’t reachable on linear TV channels. As brands move into CTV, focusing on net-new audiences makes sense during this period of supply-chain strain because it can take time to build a new relationship. Brands can introduce new audiences to products that they might be ready to buy months from now, hopefully as the supply chain issues start to ease.
Biddable media in particular gives brands access to a wider variety of CTV publishers, which allows them to diversify and find more people than if they focused solely on the top few CTV media companies. Brands can reach new viewers on premium medium-sized publisher sites for a relative bargain -- often creating an even more relevant experience.
No brand asked for a supply chain crisis, especially in the midst of a pandemic. The silver lining is that these stressors are causing companies to reevaluate their approach to advertising, audience and sales. With millions of consumers moving to streaming media, a clear area of focus is reaching people on this new channel. The wise way to approach CTV for many brands is to focus on biddable media for more reach, more flexibility, and better prices.
Pubmatic is a sell-side platform that delivers superior outcomes for digital advertising.
Nicole Scaglione is the global VP of OTT and CTV business development, PubMatic
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