Connected TV (CTV) ads are skyrocketing, leaving advertisers navigating new ad loads on platforms like Netflix and Disney+ while grappling with the challenges of measuring ROI in the streaming domain.
Our analyst answers three burning questions plaguing CTV to help marketers make the most of the fastest-growing ad format we measure.
Do you anticipate linear, cable, or broadcast TV rebounding, or will they become increasingly irrelevant?
Analyst Ross Benes: “[Linear TV] is inevitably marching toward becoming more irrelevant and toward the spending decline. However, they still have some purpose to the companies that own them because most of the content is repurposed for the affiliated streaming service.”
Key stats:
- The average time spent per day with traditional TV in the US is expected to fall by 15 minutes between 2023 and 2025, marking an 8.6% decline, according to our forecast.
- In July, for the first time, the share of viewing time among US adults on cable and broadcast TV fell to a combined 49.6%, according to Nielsen.
Are low ad loads, especially in some of the newer premium services, sustainable?
Benes: “[Ad loads] will probably increase. It’s been a trend with streaming advertising—really a trend with any digital advertising—that once advertising is introduced, it only grows.”
Key stats:
- Ad tiers on Netflix, Disney+, and Max are still new, and it will take time for them to scale.
- CTV only accounted for a 15% to 23% share of total TV ad inventory between 2021 and 2023, according to Brian Wieser of Madison and Wall.
What will CTV ad measurement look like next year?
Benes: “I just don’t expect streaming to coalesce around a single currency like TV did for decades. It’s just going to be more bifurcated.”
Key stats:
- Standardized measurement would enable advertisers to optimize their investments more effectively across streaming platforms.
- Less than half (49%) of marketing professionals worldwide are “very confident” in measuring ROI for CTV and OTT advertising, according to Nielsen.
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