The CTV Now
For CTV publishers, ad-supported subscriptions are a profitable option. In recent years, there has been a sharp increase in the number of streaming services and video platforms that provide high-quality programming. Yet, CTV consumers are unwilling to pay expensive subscription fees to access them all. Because CTV publishers are aware of this, they have increased the cost of ad-free subscriptions while providing low-cost tiers with ads.
All of this is fantastic news for advertisers!
In theory, more competition among streaming platforms should lead to lower advertising costs. As a result, the high prices advertisers usually pay for impressions on streaming services could decrease due to market dynamics.
Furthermore, the expanding CTV ad space market is less straightforward than linear TV. Compared to regular TV, connected TV advertising has many benefits that increase efficiency, including:
Precision targeting: Based on various criteria, including viewing habits, interests, and demographics, advertisers can target CTV advertisements. Instead of depending on basic viewership data of traditional TV, this enables businesses to reach the right audience with the right message at the right moment.
Engaged viewers: A viewer has consciously chosen to watch a video when they decide to stream it. Compared to linear TV, where viewers may not have selected to watch the particular episode being aired, this represents a substantial shift.
Measurable outcomes: A range of metrics, including impressions, views, and click-through rates, can be used to measure the effectiveness of CTV advertising efforts. This enables advertisers to monitor the effectiveness of their ad campaigns and make necessary adjustments. This is a huge benefit compared to traditional TV where is it much harder to measure the effectiveness.
It is not surprising that CTV ad spending has increased dramatically in light of all of this. Global CTV ad revenue is expected to more than double from 2020 to $29.6 billion this year, and it is expected to reach $24.5 billion by 2028, according to Statista.
CTV in The Future
CTV advertising will continue to exist. To take advantage of its enormous and expanding potential, serious advertisers need to understand how to work with it now. Advertisers will have more and more chances to reach their target audiences with compelling and successful advertising as CTV viewership keeps growing.
As more and more advertisers enter the market, competition for high-quality ad placements will undoubtedly grow over time, but this will probably be countered by advancements in targeting and creativity. The advertisers with the most experience in CTV will be best positioned to leverage these advancements, ensuring they remain competitive and efficient as the market evolves.
Here are some possible advancements in the CTV industry for the future:
Similar to current programmatic solutions for digital display ads, programmatic TV is a developing technology that enables advertisers to purchase and sell CTV ads in real-time using automated mechanisms. It is already transforming how TV ads are bought and sold, making the process more efficient for both publishers and advertisers, and it will become even more effective as the technology improves.
Additionally, new ad formats tailored to CTV are being created. Compared to typical TV advertisements, CTV ad formats are anticipated to be more immersive and captivating. However, the lack of standard creative guidelines across the industry is a key challenge that makes it difficult to scale and slows progress in this area.
More and more data will be used by advertisers to target their CTV ads, leading to more personalized and effective ad strategies, especially when combined with machine learning.
The way that TV advertising is viewed, purchased, and sold is changing dramatically as a result of the shift to CTV. TV is becoming more quantitative, effective, efficient, and accessible for advertisers. CTV will become an even more significant and effective choice for advertisers to reach their target audiences as their viewership keeps increasing. Long into the future, advertisers will be able to develop CTV advertising campaigns that are both successful and captivating by utilizing the newest data and technologies.
To learn how Ampliffy can assist you as an advertiser looking for a potential ad campaign through CTV, contact us right now.