Unveiling the Real Potential of CTV for Marketers: Moving Beyond the Hype | 20 Nov, 2023
As consumers increasingly shift from traditional linear television to streaming services, marketers are recognizing the significant potential of addressable advertising in Connected TV (CTV). This shift allows for the delivery of tailored ads to different streaming viewers based on their audience persona, leading to more effective results in specific segments and facilitating advanced attribution.
Despite the growing enthusiasm for CTV advertising, it remains a relatively new channel for marketers. Understanding how inventory is bought, sold, and tracked on this platform is crucial. The deals in the CTV space that are most favorable to buyers need to be identified. Additionally, exploring the current state of CTV CPMs (cost per thousand impressions) is essential for marketers to make informed decisions.
To navigate the landscape of CTV ad inventory effectively, it’s crucial to delve into the factors influencing pricing in the channel. By gaining insights into attribution goals and challenges associated with CTV, marketers can strategically position their brands to capitalize on the emerging opportunities in this format. In the coming year, attention should be focused on key aspects of the CTV landscape to maximize the benefits for marketers.
Predicted growth of Connected TV Ad Spend in 2024
As we approach 2024, “Connected TV ad spend” has become the buzzword in the advertising realm, and for good reason. Anticipated trends suggest a significant surge in Connected TV ad spend, reshaping the landscape for advertisers and businesses.
Consider the following insights:
Prediction 1: According to a recent forecast by eMarketer, the projection for CTV ad spend in 2024 is an impressive $14.12 billion, marking a substantial increase from the $9.36 billion recorded in 2021.
Prediction 2: The same report indicates that the share of CTV ad spend in total TV ad spend is expected to climb to 44.6% by 2024. This signifies a notable shift in advertising strategies, with businesses increasingly favoring Connected TV advertising over traditional TV advertising.
The driving force behind this surge lies in evolving consumer behavior. The prevalence of over-the-top (OTT) media services such as Netflix and Hulu has led more consumers to transition from traditional TV to Connected TV. This shift creates a plethora of opportunities for advertisers to connect with a broader and more engaged audience, contributing to the predicted uptick in connected TV ad spend in 2024.
However, it’s crucial to emphasize that, with this newfound power, advertisers must wield it responsibly. While the rise in CTV ad spend is exciting, the focus should not merely be on spending but on spending wisely, adapting strategies to align with the evolving landscape.
How Advertisers can Leverage the CTV Surge?
Preparing for the surge in Connected TV (CTV) ad spend requires strategic planning. Here’s a guide to help advertisers capitalize on this opportunity:
Know Your Audience:
Start by understanding your target audience. Identify their interests, preferences, and viewing habits. This knowledge will serve as the foundation for your ad strategy, ensuring that your advertisements effectively resonate with your intended viewers.
Personalize Your Ads:
Harness the potential of CTV by creating personalized ads that cater to individual users. Tailor your content to speak directly to your audience, emphasizing the importance of relevance in your advertising efforts.
Utilize data from past campaigns to inform your future strategies. Analyze what worked well and what didn’t. By learning from both successes and mistakes, you can refine your approach and optimize your advertising efforts.
Test and Learn:
Given that CTV advertising is still in its early stages, there’s ample room for experimentation. Be bold in trying out different approaches to see what resonates best with your audience. Embrace a test-and-learn mentality to refine your strategies over time.
The landscape of CTV advertising is evolving rapidly. Stay attuned to industry trends and be ready to adapt your strategies accordingly. Being nimble and responsive to changes will position your advertising efforts for continued success.
In conclusion, the anticipated increase in CTV ad spend presents a unique opportunity for advertisers. To make the most of this golden opportunity, it’s essential to stay informed, remain flexible, and always prioritize understanding and connecting with your audience. Are you ready to seize the moment? Contact us to get started with CTV advertising.
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