TV sets have been a standard fixture in houses and apartments across the country since the Golden Age of Television. For over 60 years, families have gathered in living rooms to watch live news, sports, movies, and simply spend quality time together. However, the way we watch our favorite entertainment has been quickly changing – rather than paying for a cable provider, consumers are opting to ‘cut the cord’ and subscribe to streaming services through their phones, tablets, and Smart TVs. With an expected 225.8 million consumers using Connected TVs by 2024, advertisers are investing in this rapidly growing digital media like never before. “Connected TV offers a way to battle the ongoing marketing struggle of consumers turning their attention away from ads,” said Stephen Vyskocil, Director of Sales, West. “Meeting users during moments where their attention is captivated is one of several reasons why marketers are adjusting budgets to bring programmatic closer to the screens.”
With consumers undeniably choosing digital over linear television, advertisers are shifting budgets to meet audiences where they’re at. According to an article from the IAB, CTV ad spending grew 22% in 2020 – its highest gains in ad spend to date. “This is a bellweather moment in media that reflects the continued acceleration and shift to digital,” said Eric John, VP of IAB Media Center. “While we are seeing growth across all digital video, the movement to more audience-based buying approaches has resulted in increased buyer demand for CTV.”
Connected TV advertising is effective because it mirrors traditional television spots while leveraging the efficiency and accuracy of digital advertising. “The premium CTV market is racing to combine advanced delivery technology and audience data at the most affordable cost,” said Michael Polzin, Digital Media Buyer. “The shift towards programmatic buying and selling is more than just a trend; it’s a necessity for both publishers and advertisers. The efficiency is unparalleled and opens the door for both sides to develop in new areas.”
Information for today’s blog came from the IAB. See our “Building an Effective CTV Strategy” one-sheeter to see the latest updates to our offering and follow us on LinkedIn to stay up-to-date on the latest industry trends!
