While much of the economic news right now is pretty bleak, the outlook for CTV is much more encouraging (even if there is a recession). There are several reasons to indicate that the opportunity in CTV will continue to grow. So, if you are fortunate to have CTV content, get your systems in place and get ready to capitalize.
Ad Spend Growth
According to Pixalate’s latest CTV/mobile ad supply trends report, global connected TV (CTV) ad spending rose 31% in the first half of 2022 as compared with 1H 2021. The study also shows that 94% of US households are now reachable through open programmatic.
Most advertisers buying CTV inventory plan to increase their spending on streaming by an average of +22%, according to a new study from Advertiser Perceptions.
CTV Audience is Growing
- More and more users are shifting from linear to CTV
- Consumers are embracing ad-driven streaming services vs subscription-based ones
- Inflation is likely to reinforce the trend toward ad-supported services
- AVOD and FAST are + 24.3% and +92.5% in market share YoY
Better Measurement = Performance Channel
Another positive for CTV is that increasingly better measurement gives advertisers the ability to manage it as a performance channel. In slower economies, marketers tend to focus their spending on measurable and performance-based mediums.
According to Tom Cox, Premion president, advertisers have embraced CTV and are shifting bigger budgets to the medium as an essential buy for driving brand awareness and performance marketing. The Premion study validates that CTV has become an invaluable channel for brand marketers and agencies to follow their audiences, plan with data-driven targeting, and measure outcomes-based performance. New data capabilities make CTV even more compelling for advertisers to connect viewership to direct business results.
Better Efficiency for Advertisers
Finally, ad-supported CTV inventory is growing and will keep growing as audiences shift to AVOD and FAST. With increased ad-supported CTV, advertisers will find better CPMs and increased efficiency, which will lead to increased spending.
Publishers are seeing a programmatic CPM range of $20-$40, making the current marketplace a win for advertisers and publishers alike.
For our part, we are seeing more demand than supply for our CTV inventory. We have successfully launched a CTV header bidding solution that is maximizing CPMs and helping our partners solve many CTV monetization challenges. Check out our ebook for everything you need to know about CTV advertising. As the CTV market continues to grow, now is the time to get a system in place that produces results. Let us know if you’d like to put our tech to work for you.