Wurl at OTT.X: Harnessing innovation at the cutting edge of CTV

The OTT.X Summit 2024, held last month in Los Angeles, provided a valuable platform for streaming industry professionals to discuss current trends, challenges, and innovations. Wurl’s own Dave Bernath, Vice President of Sales & Partnerships, Americas presented at the summit, covering key insights from the CTV Trends Report 2024 — including what these findings mean for streamers and marketers.

It’s clear to everyone that CTV is on an upward trend, CTV adoption is set to hit its highest level: some 196 million Americans are estimated to be FAST adopters by 2025, of which 58% are Gen Z and millennials. But as in any growing industry, there are going to be winners and losers. Who is benefiting from this growth in streaming? And what metrics show how participants need to adapt to make the most of CTV?

Focus on innovation

With over two decades of experience in digital media and television programming, including a role as General Manager at Comedy Central, Dave Bernath brings a depth of knowledge and a pragmatic approach to tackling industry challenges.

During his fireside chat with Colin Dixon of nScreenMedia at OTT.X, Dave detailed how Wurl is working with clients and partners to combat the current growth plateau in the FAST. The moderator pointed out that while churn rates are decreasing, Wurl’s research has shown that session length growth has stalled and ad fill rates are also decreasing.

Dave traced the growth trajectory of FAST, noting its initial similarities to traditional cable TV. These similarities, such as the use of electronic programming guides (EPGs), provided a comforting sense of familiarity for viewers, which in turn spurred a significant surge in growth for the platform.

A few years back, major players like Warner Brothers Discovery and NBCUniversal hadn’t yet entered the FAST arena. Fast-forward to today, and they operate dozens of channels, contributing to an impressive proliferation of content that keeps getting better. Initially, this familiarity and expansion were enough to engage viewers who were aware of these offerings.

However, recent trends suggest a slowdown in FAST’s rapid growth. Research has indicated that the average viewer only watches about five FAST channels, in stark contrast to the 12 to 15 channels regularly viewed on cable, where some viewers tune into as many as 18 channels. While overall FAST consumption continues to rise, it’s only inching forward — not the robust growth we once celebrated.

This brings us to a critical juncture where innovation in user experience (UX) becomes paramount.

“In terms of personalization, recommendations, and more dynamic UXs that show users certain previews, discovery or things based on behavior or history — and help them navigate this sea of content — that really hasn’t happened in a big way,” Dave explained.

A new dynamism on CTV

The potential for a more dynamic user experience remains largely untapped. FAST platforms need to push further. Dave suggested that elevating the UX, for instance adopting mobile’s short-form experience that links to content, could involve more personalized recommendations and more intuitive navigation aids to help viewers traverse the vast sea of available content.

Addressing another critical issue, Dave highlighted the challenges channels face in merely being discovered by potential viewers. “Publisher’s problem is not viewership when people find them; it’s that viewers can’t find them,” he explained, citing conversations with industry peers. To combat this, strategies have shifted towards targeted marketing within FAST platforms themselves — marketing to viewers who are already there but may not be aware of what is available.

The impact of data on content strategy

For channels operating on platforms where the Content Delivery Network (CDN) and ad stitching are managed, the depth of data available is substantial. “For publishers working with Wurl, the data that the content company gets is incredible. Our clients are getting insight into sessions, uniques, every asset, completion rate, hour-by-hour,” Dave noted, contrasting this with some platforms where the data available to content providers might not be as granular, and instead focused on more basic metrics such as minutes viewed.

This disparity in data access can significantly affect how channels develop and adjust their content and advertising strategies. For content providers with access to comprehensive data, the ability to analyze viewer behavior in detail enables more informed decision-making and targeted content delivery. This can mean adjusting programming schedules based on viewer engagement patterns or tailoring advertisements to better match viewer demographics and preferences.

Dave expressed frustration about the limitations faced by some providers: “It’s kind of a bummer that the ‘walled garden’ model has actually been growing because all publishers want to do is make the best channel possible. The more information they have about what’s working, what’s not, how things fit together, the better their channel is going to be — and the better success it will be for all.”

Not having data means publishers are struggling to make data-led decisions, underscoring the need for a holistic approach to data utilization. In the meantime, publishers are trying to make do, “If you have a channel that’s on five platforms, but you’re able to look at your data from two and see how things are trending, it’s probably a reasonable thing to apply a change or make a decision based on that.”

Conclusion

The discussions at the OTT.X Summit 2024 highlighted that while the FAST industry faces challenges, it also holds substantial opportunities for growth and innovation. The emergence of advanced UX experiences and personalized content discovery mechanisms is poised to significantly enhance viewer engagement and broaden FAST channels’ reach. Additionally, the ability to target audiences precisely through sophisticated data analytics ensures that content is not only delivered efficiently but also effectively meets viewers’ preferences.

You can read all the findings from the CTV Trends Report 2024 here.