A major shift is happening in advertising and it’s clear that Connected TV (CTV) is leading the way. With technological advancements and changes in how people watch TV, advertisers are quickly moving toward CTV, seeing its incredible potential to reach and connect with audiences better than traditional TV.
The 2024 Connected TV Report by The Trade Desk (TTD) provides insightful information that highlights CTV’s rise in digital advertising. Examining the essential findings and figures from this study, it becomes clear that CTV represents a considerable shift in how businesses interact with their target market rather than merely a trend.
CTV Crosses the Tipping Point
The findings are clear: nearly 40% of advertisers are gearing up to increase their programmatic CTV spending in 2024. This enthusiasm aligns with the Interactive Advertising Bureau’s recent findings, indicating a strategic shift in planning ad buys, with a third of advertisers harmonizing their linear and CTV strategies.
Even more telling is that approximately 65% of those surveyed now view CTV as a “must buy” for their brands, outpacing all other video ad formats, including social video. This marked preference highlights CTV’s growing authority and perceived value among advertisers seeking to forge strong connections with their target audiences.
A New Era of Advertising Strategy
The traditional strategy of effective, upfront linear TV investments is under review. Advertisers increasingly prioritize CTV in their plans, motivated by the shift in consumer habits towards streaming, increased available CTV options, and improvements in programmatic buying technologies.
Most advertisers prioritize CTV (34%) or balance their ad buys between CTV and linear TV (29%). This shift is particularly striking as the preference for “linear-first” strategies has seriously decreased, falling 15% in just one year. Shifting to a combined plan for both traditional TV and CTV advertising shows a more considerable change toward more connected and effective ways of advertising.
Driving Factors Behind the CTV Shift
The allure of CTV among advertisers can be attributed to several critical factors, including the expansion of ad-supported streaming platforms, which has opened up new inventory and opportunities for reaching audiences. With more than half of Americans now part of the cord-cutting trend, the reach of CTV platforms has expanded immensely, further enhancing its appeal.
Advertisers prioritize the ability of CTV campaigns to target their desired audiences, with almost half ranking this capability as their top consideration. Moreover, perceptions around the cost-effectiveness of CTV are changing. The study reveals a 58% increase in advertisers who recognize “better pricing” as a primary benefit of programmatic CTV buying, indicating a growing appreciation for CTV’s value.
Looking Ahead
As we look towards the future, it’s clear that CTV is setting new rules for how brands engage with their audiences. With nearly all advertisers planning to maintain or increase their investment in programmatic CTV over the next year, the force driving this change is undeniable.
The Trade Desk’s research outlines the way forward, guiding advertisers keen to harness CTV’s transformative potential. As we enter this new era of advertising, the possibilities for engaging with audiences in more profound and valuable ways are unlimited.
In summary, the move towards CTV represents an exciting growth in advertising that promises to enhance the reach and efficiency of campaigns and redefine the relationship between brands and their audiences. The future of advertising is here, and it’s clear that CTV is at its heart.