Video is still a driving force for digital ad spending, but the connected TV (CTV) opportunity remains unclear. Video is already the major portion of digital display ad spending, and it’s set to get even bigger. There’s also a lot of interest in the CTV opportunity—but it appears to be relatively small for now, while marketers figure out the best way to approach this space. What’s Inside.

As with many digital adoption trends, Europe is leveling off somewhat below North America. Sub OTT user growth in Western Europe has descended into the low single digits, even though only 44.3% of the population will be using these services this year. European viewers rely more on traditional TV than their peers in North America and will continue to do so for many more years.

The broader CTV category—which includes BVOD and all other digital video advertising that appears on CTVs—will likely see strong growth as well, with advertisers building out their CTV advertising strategies by drawing budget from linear TV and other underperforming channels. Advertisers must adjust their strategies to align with this reality.

We expect the availability of more connected TV (CTV) inventory—including NFL Thursday Night Football rights and the revamped Freevee offering—will help Amazon lure TV ad dollars from both national media and shopper marketing budgets with the enticement of closed-loop performance. What It Means. Despite current challenges, Amazon will recapture ecommerce market share.

Innovation may emphasize non-European regions—PayPal is targeting Africa, for example—as Brexit makes cross-border ecommerce in Europe pricier and more complex. Providers Will Embrace Blockchain to Speed Cross-Border B2B.

Smart devices—including connected TVs, smartwatches, and smart home products—are finally gaining ground in Italy. The near-universal engagement with digital video has encouraged ownership of smart TVs, which rose by 9 percentage points YoY, to 55.9%. Ownership correlated directly with income, reaching 62.8% in the most affluent homes and was also above average among males, at 58.0%.

Over 34% of internet users owned a smart TV in H1 2021, compared with 29.5% a year prior. Yet—as in previous surveys—penetration in France remained well below that of several other Western European countries. In Germany, Italy, and Spain, for example, about 56% of respondents had a smart TV this year.