On Our Minds: The Expanding Ecosystem of Connected TV
It's the week after the Tony Awards, and that means that many of us are still bleary-eyed and heavily relying on our morning coffee for a jolt of energy after celebrating this incredible theatrical season well into the night. It also means that millions of viewers across the country just got a front-row seat to some of the most exciting, powerful, and entertaining musicals and plays this Broadway season had to offer, all from the comfort of their own homes. Over the past few years, the Tony Awards have increasingly utilized streaming platforms (the show aired on Paramount+, CBS, and Pluto TV last night), to broaden reach and engage new audiences. As more and more folks tune into events like the Tonys through streaming platforms, it's clear that Connected TV isn't just changing how we watch TV—it's revolutionizing the way we experience live events, too, and thus opening the door for advertisers to expand how and when they utilize CTV tactics.?
It's no longer a question of whether or not we should be investing in Connected TV. More than 88% of U.S. households own at least one internet-connected TV device, ad-supported streaming audiences officially surpassed that of cable in 2022, and according to eMarketer/Insider Intelligence, by 2027 it's anticipated that there will be twice as many advertising-based video on demand viewers as pay TV viewers. Additionally, as more streaming platforms have introduced basic with-ads packages (Netflix, Disney, Amazon), we've seen a correlating increase in the percentage of people, especially amongst the Millennial and Gen Z demos, who say they prefer streaming video content with commercials instead of paying for a subscription without ads.?
Not to mention, as cookies fade into obscurity throughout 2024, CTV is emerging as a crucial channel offering access to authenticated user data and enabling the integration of first-party data and partnerships with data providers. As a result, we can deliver more personalized, targeted advertising experiences that resonate with audiences in an increasingly fragmented media landscape. The wealth of data paired with the leveraging of machine learning to create more granular audience segments based on demographics, interests, and viewing behavior allows for a much more intentional, focused campaign. Taking it a step further, when CTV is purchased programmatically, it allows for easier campaign optimization, scalability, improved trackability, and the ability to control ad frequency.?
So the question today is not if we should be running CTV but rather which strategies we should be employing — and when — to most effectively capitalize on the benefits and opportunities of CTV within our full-funnel marketing campaigns. Whether the objective is high-frequency awareness and brand retention, a more targeted and integrated layered approach that customizes the experience for the user, or capitalizing on and conquesting viewers of a major awards show or sporting event,? CTV provides a mechanism for advertisers to do just that.
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