Connected TV (CTV) is the biggest media opportunity since the onset of cable. Viewers have more control over their viewing experiences and advertisers have new ways to reach them using paid media. The channel brings:
- More inventory
- More content
- More innovative ad products
- The ability to target viewers with a greater degree of certainty
CTV Advertising’s Momentum in Media Planning
There are 197.8 million CTV users in the US alone and 65% of 2023 IAB survey respondents consider CTV a “must-buy” ad format. The boom is just beginning.
The difference in time spent with TV vs. CTV is narrowing. Come 2024, TV will only lead CTV by 50 minutes, with the CTV viewership dominating soon after. As a result, media planners are diverting portions of their linear TV budgets towards CTV in their omnichannel media strategy. In 2023, approximately 30% of digital video ad spend will go to this channel.
While effective on its own, CTV’s halo effect should be on every advertiser’s radar. Research shows that in running CTV, advertisers benefit from:
- After 30 days, a 4.19% increase in conversion rates for paid social media and 1.64% increase in conversion rates.
- After 90 days, a 8.52% increase in conversion rates for paid social media, and a whopping 22.27% increase on conversion rates for paid search.
Our Take: The Future of Connected TV
Linear TV is seeing a decline in viewership while CTV has double digit growth. With the onslaught of quality programming available on streaming platforms, TV users watch what they want, when they want.
Previously, TV advertising meant buying particular programs to reach an audience. With CTV, marketers do not have to choose the programs advertisements appear in. CTV platforms use algorithms and audience information to make data-driven programmatic ad placements.
What’s next for media buying and CTV?
We expect continued growth for CTV as the world of advertising data and media attribution evolves further. Advertisers want cost-efficient, effective advertising, and CTV grows on the promise of just that.
Missed part 1 about the forces driving the changes in TV advertising? Check it out here and stay tuned for the next one. Have questions in the meantime? Contact us or sign up for our newsletter.
Connected TV (CTV) is the biggest media opportunity since the onset of cable. Viewers have more control over their viewing experiences and advertisers have new ways to reach them using paid media. The channel brings:
- More inventory
- More content
- More innovative ad products
- The ability to target viewers with a greater degree of certainty
CTV Advertising’s Momentum in Media Planning
There are 197.8 million CTV users in the US alone and 65% of 2023 IAB survey respondents consider CTV a “must-buy” ad format. The boom is just beginning.
The difference in time spent with TV vs. CTV is narrowing. Come 2024, TV will only lead CTV by 50 minutes, with the CTV viewership dominating soon after. As a result, media planners are diverting portions of their linear TV budgets towards CTV in their omnichannel media strategy. In 2023, approximately 30% of digital video ad spend will go to this channel.
While effective on its own, CTV’s halo effect should be on every advertiser’s radar. Research shows that in running CTV, advertisers benefit from:
- After 30 days, a 4.19% increase in conversion rates for paid social media and 1.64% increase in conversion rates.
- After 90 days, a 8.52% increase in conversion rates for paid social media, and a whopping 22.27% increase on conversion rates for paid search.
Our Take: The Future of Connected TV
Linear TV is seeing a decline in viewership while CTV has double digit growth. With the onslaught of quality programming available on streaming platforms, TV users watch what they want, when they want.
Previously, TV advertising meant buying particular programs to reach an audience. With CTV, marketers do not have to choose the programs advertisements appear in. CTV platforms use algorithms and audience information to make data-driven programmatic ad placements.
What’s next for media buying and CTV?
We expect continued growth for CTV as the world of advertising data and media attribution evolves further. Advertisers want cost-efficient, effective advertising, and CTV grows on the promise of just that.
Missed part 1 about the forces driving the changes in TV advertising? Check it out here and stay tuned for the next one. Have questions in the meantime? Contact us or sign up for our newsletter.
