According to Mastering CTV 2023 released by Adjust, almost half of media experts believe that connected TV and digital video hold the most potential for innovation in 2023.
For Marketers, Why CTV Is A Must?
- Ad Tolerance on CTV Is Higher
Advertising on the big screen means catching people’s attention when they are more relaxed, more receptive, and are more open to learning about products. Research reveals that people have a much higher ad tolerance when watching TV series, sports, and news.
- CTV Scale Your Influence
Advertising your product via CTV on the big screen subtly can make the audience feel trusted. Moreover, when family members watch TV together and see the advertising, the brand will be burned into their common awareness and concepts. This can make it easier for one family member to make a decision.
- Highly Increase User Reach on CTV
According to Adjust data, CTV has great strength in driving potential users through the funnel to down-funnel channels such as Search and Social, where users convert.
CTV Is King for Streaming
U.S. is currently the most mature CTV market, with 93% of U.S. internet users reachable via CTV, other countries are also embracing the channel, with 67% of the U.K. population and 63% of the German population as CTV users. Additionally, more than four out of five Latin Americans prefer CTV to linear TV, and India is expected to become the third-largest CTV market by 2024.
This continued rise in CTV adoption parallels the increase of cord-cutters, those who stop paying for cable TV, and cord-nevers, who have never paid for cable TV. In 2023, eMarketer predicts that non-pay TV households, made up of cord-cutters and cord-nevers, will surpass pay TV households, ensuring that CTV technology and, with it, CTV advertising, is an essential part of the future for app marketers.
Targeting & Measuring Capability Grow
With more viewers opting into ad-based streaming, additional data signals are available to app marketers in the CTV space. CTV is still developing regarding targeting data and standardized reporting. However, current capabilities should already excite marketers. Today, advertisers can target based on user demographics, contexts, interests, measure audience reach, engagement, and impact. Compared to traditional or linear TV, CTV enables advertisers to target and measure audiences with greater specificity.
Where CTV Market Will Go For
2023 is shaping up to be an exciting year for CTV. As economic headwinds encourage consumers to cut unnecessary expenses and spend more time at home, CTV viewing is inevitably going to continue to climb.
In fact, for decades, ad-supported TV has not only survived – but benefited – from economic slowdowns. While people may opt for less discretionary spending, they will always want entertainment. To provide more consumers with access to their programming – and, in turn, create greater opportunities for advertisers.
As more players join the CTV market, more content and innovation is available to audiences, providing greater inventory for advertisers. This expansion of inventory availability will allow marketers to serve customized, segment-specific advertisements and to better reach niche audiences via a mix of targeting options.