Challenges and Opportunities of CTV Advertising | 04 Apr, 2023
CTV advertising is growing in popularity and so should your brand. If you’re not using this platform already, you’re missing out on a major opportunity. Read the blog to know why.
In 2022, CTV ad spending in the United States was expected to amount to roughly 19 billion U.S. dollars, marking an increase of 33 percent from the previous year.
This growth is only expected to continue in the coming years, as more and more consumers shift from traditional TV viewing to streaming on connected devices.
According to a report by eMarketer, CTV ad spending in the US is expected to reach $27.8 billion in 2024, representing a compound annual growth rate (CAGR) of 20.8% from 2020 to 2024.
The rise of CTV advertising presents a significant opportunity for advertisers to reach consumers with targeted and engaging ads more measurably and cost-effectively than traditional TV advertising.
Additionally, CTV advertising offers greater flexibility and control, allowing advertisers to adjust their campaigns in real time based on performance data.
However, as CTV advertising continues to grow in popularity, it will be important for advertisers to address the challenges and opportunities that exist in this space.
Challenges of CTV Advertising
CTV (Connected TV) advertising has been growing rapidly in recent years, but it still faces some challenges. Here are some of the challenges of CTV advertising:
1. Fragmentation: There are many different platforms and devices that consumers use to access CTV content, which can make it challenging for advertisers to reach their target audience efficiently.
2. Ad-blocking: Just like with traditional digital advertising, many viewers of CTV content use ad-blocking software, which means that advertisers may not be able to reach their intended audience.
3. Limited targeting: While CTV advertising offers some targeting capabilities, such as targeting based on location or device type, it is still more limited than other forms of digital advertising.
4. Measurement: Measuring the effectiveness of CTV advertising can be difficult, as there is no standard method for tracking viewership across different platforms and devices.
5. Ad fraud: Like any form of digital advertising, ad fraud can be a problem in CTV advertising. This can include things like fake impressions or click fraud.
6. Cost: CTV advertising can be more expensive than other forms of digital advertising, particularly if advertisers want to reach a wide audience across multiple platforms and devices.
What are the Advantages of CTV Advertising?
CTV advertising presents several opportunities for advertisers, including:
1. Highly targeted advertising: CTV advertising allows advertisers to target their ads based on specific audience demographics, interests, and behaviors. This helps advertisers deliver more relevant ads to viewers, increasing the chances of engagement and conversion.
2. Improved measurement and analytics: CTV advertising provides advertisers with access to detailed metrics such as ad completion rates, viewability, and engagement rates. This enables advertisers to track the effectiveness of their campaigns and make data-driven decisions to improve future campaigns.
3. Increased reach: With the growing popularity of streaming services, CTV advertising offers a massive and growing audience that can be reached by advertisers. According to eMarketer, there were 195.1 million CTV users in the US in 2021, a number expected to grow to 204.2 million in 2022.
4. Reduced ad fraud: CTV advertising provides better security and transparency than traditional TV advertising, as it is easier to detect and prevent ad fraud.
5. Cost-effective: CTV advertising can be more cost-effective than traditional TV advertising, as it allows advertisers to target specific audiences more precisely, which can reduce wasted ad spend.
6. Access Extensive and Premium Inventory
Advertisers can tap into the extensive CTV advertising inventory offered by over-the-top (OTT) services through open exchanges or private marketplace deals. BasisTV+ provides access to 93% of US smart TVs.
7. Create a Personalized and Omnichannel Experience for Consumers
To create a personalized ad experience, targeting strategies can be used along with an omnichannel approach. When buying a product seen in an ad, it may have been encountered through various channels like Instagram, Google search, or a video ad during a Hulu binge-watch.
As CTV advertising continues to grow in popularity, it will be important for advertisers to stay up-to-date with the latest developments in technology and tactics to make the most of this advertising channel. By using targeting strategies, an omnichannel approach, and taking advantage of the benefits of CTV advertising. Advertisers can create a personalized and intentional ad experience for their target audience with the help of Silverpush’s AI-Powered hyper contextual technologies, Mirrors built for CTV. Mirrors ensures all your ads are displayed on premium content and brand-safe CTV video inventory after they are enhanced contextually. To know more about how you can make the most out of CTV with Mirrors, fill out the form on your right and a member of our team will soon contact you.
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