CTV technology, encompassing connected TVs, gaming consoles, and devices like Roku, is on the rise. Among U.S. millennials, connected TV users are expected to surpass 62.5 million by 2025, up from nearly 57 million in 2020. The appeal is clear: while traditional TV has limited schedules, CTV offers the flexibility of internet-connected streaming, allowing users to watch content on demand. As more programmatic platforms tap into CTV advertising, the ecosystem continues to evolve with emerging trends in 2024.
1. Shifts in Viewership Habits
The cost of SVOD (subscription video-on-demand) services is rising, pushing viewers toward FAST (free ad-supported) streaming platforms. With Netflix’s recent price hikes, the trend toward ad-supported models is expected to grow, providing advertisers with new opportunities to reach audiences. In 2023, over 55% of U.S. viewers used FAST services, a number likely to increase in 2024.
2. Rise of Shoppable Ads
Streaming platforms are revolutionizing ad interaction with shoppable ads. Roku and Disney have introduced these formats, allowing viewers to take immediate action on ads, creating a seamless experience for both consumers and marketers. In 2024, more platforms are expected to adopt shoppable ads to stay competitive and offer interactive viewer experiences.
3. Enhanced Measurement with Open Measurement SDK
Around 17% of CTV ads play when the TV is off, often due to devices not registering when the screen is inactive, resulting in wasted advertising budgets. To tackle this, the IAB Tech Lab introduced an open measurement SDK, which includes signals for measuring CTV viewability even when the TV is off. While the SDK launched in 2022, its adoption is expected to grow significantly in 2024, improving ad measurement accuracy.
4. Advancing Suitability Solutions
Brand safety is crucial, especially in CTV advertising, where ads playing next to inappropriate content can damage trust. While programmatic platforms offer some controls, new suitability solutions are emerging, providing advertisers with better oversight. Current options include app-level and video-level controls, though the latter is often limited to smaller suppliers. As these solutions evolve, larger publishers are expected to offer more transparent, video-level data access to third-party verification providers.
5. CTV Benefits for Publishers and Intermediaries
The growing demand for CTV ads creates profitable opportunities for publishers. By joining programmatic platforms, publishers can automatically optimize ad placements, enhancing viewer experiences and driving additional revenue. Ad exchanges and networks can also benefit by offering varied CTV ad formats, improving their competitive edge and trading income.
Final Thoughts
As the CTV landscape continues to evolve, staying ahead of new trends is essential for advertisers, publishers, and intermediaries to adapt their strategies effectively. However, it’s important not to focus solely on CTV; audiences engage with content across various devices, including smartphones and laptops. A multi-channel approach remains key for successful campaigns and sustained income in the dynamic digital advertising landscape.
