CTV Advertising in 2024: The New Frontier for Targeted Engagement from Couch to Customer
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Connected TV Growth: Top CTV Advertising Trends for 2024
Connected TV (CTV) is causing a revolution in the digital advertising world, and its growth keeps going strong. As streaming giants like Netflix and Disney+ keep ruling the entertainment scene more and more advertisers turn to CTV to connect with their audience. This change has a big impact on how brands reach consumers Gen Z and Millennials, who lead the way in cutting the cord.
The growing popularity of ad-supported streaming options and improvements in CTV advertising tech are changing how digital marketing works. From programmatic ads to ones you can interact with, CTV gives marketers new ways to boost engagement and track results better. As we look to 2024, it's key to get a handle on the big CTV advertising trends that will shape the industry. This article digs into the switch to ad-supported streaming programmatic advertising's expansion, worries about data privacy, and new types of ads popping up in the CTV world.
The Move to Ad-Supported Streaming Options
The streaming scene is changing big time as major platforms start using ad-supported models. This change is happening because they need to make money while still giving people cheaper options. Almost every home in the U.S. (99%) has at least one streaming service, and 58% are okay with seeing ads now and then to save some cash [1] . You can see this trend in how more and more popular platforms are offering ad-supported tiers.
Streaming services are seeing big increases in people choosing ad-supported subscriptions. By 2025, Hulu expects 65% of its subscribers to be on ad-supported plans. Disney+ thinks almost 40% of its U.S. and Canadian subscribers will pick the ad-supported option by next year [2] . Peacock is ahead of the game, with 84% of its subscribers already on the ad-supported plan [2] .
Programmatic CTV Advertising Growth
Programmatic advertising has an impact on the CTV space causing a revolution in how advertisers connect with their audience. This cutting-edge approach uses automated tech to buy and improve digital ad space on CTV platforms giving precise targeting and better audience grouping. CTV ad spending topped INR 1675.31B for the first time in 2023 and experts think it will grow 12% in 2024 to almost INR 1926.61B [3] . This growth comes from the ability to show tailored ads based on specific likes viewing habits, and past online actions.
Programmatic platforms give marketers a wider reach across many platforms, help them spend their ad money, and offer one place for measuring and reporting results. They link marketers to 95% of AVOD streaming apps through direct deals making sure campaigns can grow big without much trouble [4] . Up-to-the-minute data and insights play a key role in improving campaigns. They let marketers keep an eye on how well things are going and make smart changes to their ad plans.
Data Privacy and Targeting in CTV
As Connected TV (CTV) keeps changing, advertisers struggle to target effectively while respecting privacy. The end of third-party cookies has led to new ways to target audiences without old methods [5] . CTV platforms have useful first-party data, like user sign-up info or subscriber profiles, which they can link to ad interactions to improve accuracy and personalization [5] .
To tackle privacy issues, advertisers now use contextual targeting. This approach shows ads based on what people are watching making sure they're relevant without tracking specific users [5] . Also, CTV advertising uses probabilistic modeling to guess how likely a user or household is to interact with an ad [5] .
Advertisers now use anonymized device IDs to target specific devices in a household helping them reach viewers precisely [6] . As third-party cookies fade out, companies now focus more on gathering first-party data and teaming up with platforms that have lots of first-party data [6] .
Emerging CTV Ad Formats and Technologies
Connected TV (CTV) ads keep changing fast. New formats and tech aim to grab viewers' attention and boost sales. People like interactive ads more now. These ads let viewers jump right into the content. Ads that let you shop are popping up all over. They give users a chance to buy stuff straight from their TV [7] . By 2024, experts think US shoppable video sales will hit INR 1413.97 billion. This makes up 15.2% of all US online retail sales [8] .
Advertisers now influence advanced targeting abilities using better data analytics to send ads that match viewers' likes and watching habits [7] . Linking devices is also a big trend giving users the same experience across many devices [7] . The use of Artificial Intelligence (AI) will grow a lot helping ad makers look at huge sets of data to better understand audiences and improve how ads are sent [9] .
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Conclusion
Connected TV advertising is changing fast. Ad-supported streaming programmatic ads and new ad types are leading the way. This change has a big effect on how brands reach their audiences younger viewers who are ditching cable. As CTV platforms gather more user data, advertisers are finding new ways to balance good targeting with privacy worries. They're moving towards context-based targeting and using anonymous device IDs instead.
Looking forward, the CTV advertising world is becoming more live and engaging. The growth of buyable ads and AI-powered data tools is causing a revolution in how viewers interact and buy. As these shifts keep changing the field, ad makers who stay on top of things and adjust to these new ideas will be ready to get the most out of the expanding CTV market. The new way of advertising is now here playing out on the big TV screens in our homes.
FAQs
What are the expected trends in Connected TV for the year 2024?
2024 looks set to bring big changes to Connected TV (CTV). We'll see ad-supported video-on-demand (AVOD) services grow fast. More people will tune into free ad-supported streaming TV (FAST) apps. New TV ad formats that let you shop will hit the scene. Private marketplace (PMP) deals will become more popular than direct programmatic buys. And there's a good chance we'll see more interest in open exchange deals too.
What does the future hold for CTV advertising? CTV advertising looks set to combine the classic appeal of regular TV with the cutting-edge features of digital platforms. This mix will reach a wide audience and engage consumers more, making use of both tried-and-tested and new technologies.
What are the anticipated advertising trends for 2024? 2024 will see big shifts in ad tech, including the use of white-label software, improvements in programmatic campaigns, and more tech integration. These changes aim to solve industry problems while using ethical AI unified identity solutions, and green practices to address growing privacy worries.
What is the current trend in the Connected TV market and its future projection? The global Connected TV market had a value of about USD 13,233.7 million in 2022. Experts predict it will reach USD 32,517.2 million by 2030. This growth shows a yearly increase of 12.18% from 2023 to 2030 pointing to a strong upward movement in the market.
References
[1] - https://digitalcontentnext.org/blog/2024/04/02/most-people-opt-for-free-ad-supported-streaming/
[3] - https://www.iab.com/wp-content/uploads/2024/04/IAB_Video_Ad_Spend_Study_Part_1_April_2024.pdf [4] - https://www.tvscientific.com/insight/benefits-of-programmatic-ctv-advertising
[5] - https://www.dhirubhai.net/pulse/cookieless-advertising-future-connected-tv-sudeep-kumar-eucof [6] - https://www.sabio.inc/blog/connected-tv-and-the-cookieless-future-of-advertising