"Streaming isn't this emerging channel anymore. It's the new default," said Amanda Corral, senior director of paid media strategy at PepsiCo. "The story isn't less video with linear erosion, it's better video powered by targeting, reach management, and stronger outcome-based buying, while still keeping that high attention moment."

This insight came during a panel discussion at a virtual EMARKETER Summit, where industry leaders explored how the rapid evolution of connected TV (CTV) is reshaping advertising strategies across sectors.

How demographics are reshaping CTV strategies

The widespread adoption of CTV across all age cohorts is forcing marketers to reconsider long-held assumptions, particularly about older viewers.

"There's been this myth about seniors that they don't really mix with technology. We've seen the opposite to be true," says Nydia Sahagun, head of marketing strategy and innovation at Humana's primary care organization. "A big driver in seniors' historically slower adoption of CTV was that streaming services weren't developing content tailored to the senior audience."

This has changed dramatically experts say, with classic programs like westerns, "I Love Lucy," and "M*A*S*H" now widely available on streaming platforms. For healthcare companies like Humana, this evolution presents new opportunities to engage seniors in more relevant ways.

The data supports this shift: While CTV penetration is above 85% among adults 25-55, it's now well over 50% (53.2%) among viewers 65 and up, with this older demographic showing the fastest growth rate.

Ad tolerance creates new creative opportunities

As subscription fatigue grows amid rising service costs, viewers are increasingly accepting advertising in exchange for more affordable streaming options.

"What a time to be a marketer when people are asking for ads," notes Corral. "They used to go to streaming to get away from them, and now the ad experience is bringing value back to consumers. About 81% call ad-supported streaming a fair trade for free content."

This shift is creating opportunities for brands to experiment with new ad formats beyond traditional commercials. PepsiCo is exploring pause ads, content hubs, and contextual sponsorships that add value rather than disrupt the viewing experience.

Todd Segall, senior director of media sales at Verve, said the CTV ad experience is inherently superior to traditional TV.

"The ad load is so much slower, like four to six minutes typically, versus 12 to even 18 minutes in cable," he said. "And ads can be so much more relevant in CTV than they are in linear where it's one-to-many."

For healthcare provider Humana, CTV advertising serves as an entry point to the customer journey.

"Seniors don't really see ads as disruptive, they almost expect it, especially with free programming," said Sahagun. "It gives us an opportunity when they're very engaged to begin that journey with us and really tell our brand story."

Navigating fragmentation through data-driven approaches

With households juggling six to seven different streaming services, the fragmentation challenge is substantial. The panel agreed that programmatic buying has become essential to navigate this complexity.

"That diversification of platforms means audience targeting and planning must be more data-driven, period," says Corral. "Programmatic is the connected tissue bringing this fragmented streaming ecosystem together. Manual planning becomes inefficient and costly."

Segall said that the sheer volume of content, thousands of free ad-supported streaming TV channels and tens of millions of shows and movies, makes it nearly impossible for marketers to rely solely on contextual alignment.

"Because it is a digital medium that allows for audience targeting, there are a plethora of ways to identify audiences in CTV, whether through buying directly or through a programmatic pipe," he said.

While traditional media's share continues to shrink, its absolute dollar value and unique benefits ensure it remains an important consideration for advertisers seeking comprehensive audience reach.

Watch the full session.

This article was prepared with the assistance of generative AI tools to support content organization, summarization, and drafting. All AI-generated contributions have been reviewed, fact-checked, and verified for accuracy and originality by EMARKETER editors. Any recommendations reflect EMARKETER’s research and human judgment.

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