Is CTV Essential to Brand Marketing? What Do Latest Studies and Reports Suggest?

CTV advertising is gearing up as the industry unleashes its potential.

Whether you are a Millennial or belong to Gen X and Y bunch, we are sure you know what is connected-TV (CTV). CTV is one of the hottest topics of the century, and its popularity is not going to slow down. The popularity of this concept is not because it has painted the town red, but it is its remarkable ability to grab user engagement and easy accessibility for advertisers.

While the concept developed a few years back, experts suggest that CTV will mark huge growth in 2023 and beyond. CTV holds a commitment for advertisers, and here is what a study suggests:

• CTV has an 82% attention rate as compared to 69% for linear TV.
• Users engage with the ads on CTV 3 seconds longer than they do on linear TV.

Given that, spending on CTV advertising become a go-to thing for marketers and advertisers these days. Let us see why advertisers are leaning towards the programmatic capabilities of CTV.

• The Surge in Ad-Supported Streaming

Media companies and broadcasters create content for their audience. However, in recent times, it has been observed that by pooling in brand advertisements, major providers are reducing subscription costs. As a result, ad-supported video-on-demand (AVOD) is growing in popularity. Eventually, audiences are happy to consume free content with watching commercials in exchange.

By 2026, AVOD viewers will reach 174 million, while 68.6% of them will be OTT service users.

The quick adoption of AVOD has spread the target audience base. Advertisers need to spread their net to add niche audience segments to find the viewers ideal for a specific campaign.

• Sustainable Growth

We already spoke that the trend of CTV is rising and the growth is further bolstered by the ban on third-party cookies. Platforms such as OTT and CTV are strengthening the market for a cookie-less future. Marketers and advertisers are shifting their focus towards scrutinizing each dollar they spend on their campaigns to drive more performance and results.

The evolution of CTV and OTT promises a flourishing world for marketers. These platforms offer flexible solutions with long-term and short-term growth. Keeping a nimbler strategy, advertisers can adjust their ad spend monthly taking cues from the purchase decisions of their audience.

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• Cost-Effective

Connected TV allows advertisers to get their ads on the big screen without breaking the bank. From flexible price structure to low impression costs, CTV proves to be hitting the top of the list in terms of less investment and more results. The lower costs per metric or view make it affordable for advertisers to reach target audiences on any big-screen format.

That said, CTV advertising is rapidly evolving, and advertisers need to stay up-to-date with its latest trends to bear the heat of the competition. In 2023 and beyond, the landscape of CTV advertising is set to undergo many changes. Here are some of the latest trends and reports around CTV:

1. CTV Trends in the US

The Ad Spend on CTV is expected to double by 2026 and the figure would reach $43.59 billion by 2026, which is 50% more than the ad spend in 2022 at $ 21.6 billion in 2022. The rise is not just due to the number of increasing subscribers in the CTV market, but the current users are trying to spend more time on their CTV devices, which is more than what they used to before the pre-pandemic era.

2. CTV Trends in Latin America

The users in Latin America favor CTV over linear TV. Here are some garnered statistics from Latin America.

• 78% of Spanish-speaking LATAM users prefer watching free content.
• Brazilian users prefer AVOD platforms over SVOD.
• 84% of LATAM users prefer CTV over linear TV.

Users are Latin America are consciously spending on entertainment. They are looking forward to consuming free content and so AVOD services  are becoming more popular than their SVOD counterparts.

3. CTV Trends in Europe

In terms of adaption and spending, Europe hits the list. The users in Western Europe have embraced the potential of CTV, which is visible from their spending. As per a report, 55.2% of European users own a CTV device, and there is a huge room for growth in the region. It is further surveyed that in the coming years, 80% of the European users will prefer CTV over linear TV, and as a matter of fact, in the UK and the US, smart TVs are becoming a default option for entertainment.

Wrapping Up

Connected TV is here to stay for the convenience and comfort it offers to the audience and advertisers. Advertisers must target diversifying strategies to mark the desired growth for their organization. Instead of focusing on a particular streaming platform, one must cast a wide net across all devices regardless of the show with CTV advertising.