As the media landscape continues to evolve, Connected TV (CTV) has emerged as a dominant force in the advertising industry. In US, with streaming services like Peacock scoring record viewership numbers and big players like Disney, Netflix, and Warner Brothers Discovery investing heavily in CTV content, it’s clear that the industry is rapidly shifting towards this new medium.
The Growing Popularity of CTV
According to CTV Report 2024 USA by The Trade Desk, 43% of Americans are spending more time on streaming platforms because their favorite content is now available on CTV. This shift in viewer behavior has prompted advertisers to increase their spending on CTV and, in many cases, make it a leading part of their TV strategy. In fact, 95% of advertisers surveyed by The Trade Desk plan to maintain or increase their share of spend on programmatic CTV in 2024.
The Decline of Cable and Rise of Streaming
The decline of the cable bundle has accelerated the shift towards CTV. According to eMarketer/Insider Intelligence, the ad-supported streaming audience officially surpassed that of cable TV in 2022, and by 2027, there will be twice as many AVOD (ad-supported video on demand) viewers as pay TV viewers (195 million versus 91 million). This trend is driving advertisers to reevaluate their TV strategies and allocate more budget towards CTV.
CTV as a Must-Buy for Advertisers
CTV has become a “must-buy” for many advertisers, with 65% describing it as such. This is a significant shift from the past, where linear TV was the dominant force. Advertisers are now recognizing the value of CTV in driving mid-funnel and lower-funnel success, with 94% of respondents saying that CTV meets or exceeds expectations for effectiveness in their media mix modeling.
With the demise of cookies, CTV benefits advertisers as a logged-in, authenticated channel. Almost all advertisers (96%) say verified user data is somewhat or very important to their CTV strategy. Additionally, CTV provides a brand-safe, premium environment that advertisers can rely on, with live sports emerging as a must-buy. 49% of advertisers have increased their live sports allocations on CTV.
As the media landscape continues to evolve, CTV has solidified its position as a key advertising channel. With its scalability, flexibility, and improved ROI, CTV is quickly becoming the go-to option for many advertisers. As the number of streaming subscribers continues to grow and the traditional cable bundle declines, it’s clear that CTV is the future of TV advertising.
Want to know how to leverage CTV to scale up your user base? Contact MOCA at business@moca-tech.net.