Digital media comprises 70% of total advertising spend with video standing out as the most rapidly growing format within that realm, according to Vivvix data which spans coverage of $250 billion+ in media spend and detailed descriptors for more than 35 million creative assets. This level of growth in digital media and video has also laid the groundwork for CTV ad spend hitting its biggest milestone to date.

In June 2023, U.S. CTV ad spend exceeded the $1B-per-month mark and validated the projections on CTV’s ascendency from experimental to a ‘table stakes’ medium. As viewers increase their time spent on streaming platforms, advertisers and brands need to be competitive. Looking ahead, here’s how they can embrace playing the long ball with their strategies for CTV ad success.

Allocate your ad budgets for CTV and digital platforms

At the start of 2022, monthly CTV spend came in at $537M and later jumped to $760M in January 2023, a significant lead up to the billion dollar milestone. That is why it is crucial for brands to continue to broaden their perspective and allocate a significant portion of their advertising budgets to CTV and other digital media types. This strategic shift is driven by several compelling factors, including consumers increasingly migrating to CTV as well as digital platforms for entertainment and information and the growing popularity of ad-supported options among streaming platforms.

Understand where your ad dollars are going across channels

Having insights into a wider view of where budgets are being spent on CTV and digital media is a necessity to stay competitive and relevant in today’s dynamic advertising landscape. Thus far in 2023, CTV ad spend was 20% more than last year and is expected to exceed $25 billion, signaling the significance of CTV in digital advertising.

For advertisers to have a competitive advantage, as CTV ad spend continues to accelerate, they need to better understand where their ad dollars are going; and can do so by investing in data-rich tools and analytics that provide valuable insight into the performance of their campaigns, showing which channels and strategies are yielding the best results. This information also enables higher consumer engagement and conversion rates.

There is an added benefit of more flexibility in digital advertising as well as being able to more easily measure the performance of a campaign.

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Stay competitive with the latest tech advancements and optimization strategies 

Advertisers face the challenge of allocating their advertising budgets effectively across a multitude of emerging digital platforms. To navigate this complex terrain successfully, it’s essential to adopt a strategic approach and here’s how it can be done.

First, advertisers should conduct comprehensive market research and invest in understanding where their target audience is most active, considering factors like age, preferences, and behavior. This research forms the foundation for strategic planning and ensures that resources are channeled into platforms with the highest potential for engagement.

The next step is to prioritize platforms that offer advanced targeting options. Advertisers can maximize the effect of their campaigns by using  the rich data and precise audience segmentation capabilities offered by platforms. These tools can then enable them to reach their desired demographics with accuracy, resulting in more efficient spending and higher conversion rates. And the obvious is being attuned to emerging trends, new features, and innovative advertising technologies as they arise.

Embracing CTV represents an indispensable opportunity for brands and advertisers to achieve unparalleled success. As we approach 2024, the importance of CTV cannot be overstated, as it offers a unique platform for delivering personalized, data-driven content to a highly engaged audience. By harnessing the power of CTV, brands can not only enhance their reach and engagement but also stay ahead of the curve in a digital age where television and streaming are converging, ensuring their relevance and competitiveness in the years to come.

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