CTV is an essential trend to follow in the world of TV advertising. With the rapid evolution of technology and media consumption habits, connected TV is emerging as an increasingly popular way to deliver TV content. We recently published an article on the CTV market to help you understand its ecosystem.
Emergence of CTV
In this TV media context, CTV offers advertisers a wide range of advertising media. But let’s not forget that this tool is relatively new and faces a number of challenges:
- A wide range of OTT applications are available for advertisers to broadcast their commercials at the same time. Care must be taken with the flow of TV commercials to avoid overloading consumers.
- We must continue to understand the scale and speed of the change in people’s consumption habits.
- OTT platforms offer advertisers functionalities and content at competitive rates.
Globally, a significant portion of the population is engaged with Connected TV (CTV) for entertainment. While the exact percentage varies by region, it’s evident that CTV’s appeal is widespread, reflecting its growing importance as a preferred platform for content consumption and advertising worldwide. This mirrors the trend seen in France, where 63% of the population consumes CTV content for entertainment.
The AVOD (Advertising-Based Video-On-Demand) market is growing significantly worldwide. Deloitte Global forecasts that by the end of 2023, almost two-thirds of consumers in developed countries will be using AVOD services monthly. This reflects a shift in consumer preferences towards ad-supported streaming options. The market’s revenue is expected to grow from $39 billion in 2023 to $69 billion by 2029. This increase shows a wider acceptance of ad-funded streaming models in developed markets. The trend is similar in France, where a large portion of the population already uses streaming services, including AVOD. These global trends suggest evolving consumer behaviors and new advertising opportunities in the streaming market.
Whats progress has CTV made?
Connected TV (CTV) continues to redefine the global media landscape with impressive advances in 2023. This year, CTV not only captured an attention rate of 82%, surpassing linear TV at 69%, but also held viewers’ attention on ads for 3 seconds longer than traditional TV.
In terms of advertising impact, CTV dominated global video impressions with a notable 10.9% increase over the previous year, underlining its increasing growth and relevance in digital advertising.
The year 2023 also marks a milestone in terms of advertising revenues for CTV, with forecasts of $25.9 billion, representing a substantial increase of 13.2% over the previous year. This growth is not an isolated phenomenon; CTV is expected to grow steadily at a compound annual growth rate (CAGR) of 9.5% worldwide through 2028, testifying to its increasingly central role in the global advertising ecosystem.
Until now, the market hasn’t had a concrete solution for measuring the complementarity between connected and linear TV. That’s why Admo.tv, leader in TV analytics, now offers the first CTV campaign measurement solution in France.
What’s the difference with the digitalization of TV advertising?
Digitalization is opening up new opportunities for advertisers. Here are a few key points to remember about the rise of connected TV:
- With AVOD applications, advertisers have a greater opportunity for engagement. 53% of streamers say they have their phone with them when they watch a streaming service. Indeed, a viewer who chooses his or her content will be more attentive to the advertising he or she is watching, and more likely to use his or her mobile to go to the brand’s website. In support of this, according to a ShowHeros study, 34% of users search for a product after seeing a CTV ad. The study also indicates that nearly 85% of French users prefer this medium to linear television.
- With a CTV medium, advertisers’ contact costs will be optimized. For example, they can choose their target, or the context, guaranteeing better reception than with linear TV.
- Using CTV means better results in terms of attention and engagement, and therefore higher TV ROI.
- It’s vital to properly analyze exposure data for advertising campaigns on connected TV and segmented TV. This will enable advertisers to measure incremental reach, engagement and campaign performance in the digital world.
What are the future challenges for connected TV?
In the media landscape, connected TV is showing great promise. As a TV measurement company, we were able to analyze the impact of an advertiser in the e-commerce sector. They chose our CTV measurement solution to optimize the reach of their ads. The results showed an increase in the number of new visits, with 78% of new visitors coming to his website, while 22% were repeat visitors.
It’s crucial for advertisers to understand the evolution of content consumption on TV screens. This means adapting the message they broadcast, developing a consistent approach across all platforms, and choosing the right communication tools.
Finally, for market players – agencies, measurement agencies, advertising sales houses – it is essential to understand these changes in this ecosystem in depth, to accompany its growth and to define new key performance indicators (KPIs) to reconcile the characteristics of traditional television with those of digital, valuing CPMs (costs per thousand impressions), for example, to make fair comparisons.
So you’re convinced that VOD is a trend worth following?
To help you optimize your TV campaigns, Admo.tv launched its VOD campaign measurement solution this year. Called Adconnect, it lets you know the impact of your campaigns and how they complement your traditional TV campaigns. For more information, please contact us via this form.
To learn more about connected TV, we invite you to read our article about the CTV market.