For several years, the advertising industry talked about connected TV (CTV) as an emergent technology. Great for incremental reach or performance campaigns – but lacking the scale to make it a true rival to traditional TV.
And then, 2020 happened, and the way in which people watched ad-supported television changed forever. Cable subscriptions plummeted, CTV viewership skyrocketed, media owners moved into the space at speed, and new behaviors have become set in place.
Now, CTV is for everyone – which means that advertisers are thinking differently about how CTV should show up on their plans.
According to the IAB, more than half of buyers are shifting dollars from broadcast and cable TV advertising towards CTV, and eMarketer reported that 60% of advertisers already using CTV plan to increase spending in 2021.
To support those looking to step up their CTV game, we’ve created a new SpotX University course, “CTV Is for Everyone: A Buyer’s Guide to CTV.”
We cover topics including the evolved TV landscape, inventory quality, budget reallocation, demo balancing, targeting, and measurement – and address many of the questions commonly asked by advertisers.
Five key takeaways from the guide include:
- More people watch CTV than cable and satellite. CTV’s ability to provide scale used to be a valid concern, but 2020 proved to be a tipping point. Of the 120 million TV households in America, 84 million watch CTV, versus 78 million cable and satellite households.
- The CTV audience is more reflective of the general population than traditional television. As the traditional TV audience continues to age, the CTV audience continues to become increasingly diverse – appealing to all ages, lifestyles, and household compositions.
- Ad budgets are not in line with audience dynamics. In 2020 traditional TV accounted for only 37% of total ad-supported TV viewing time, despite receiving 88% of TV ad spend. Conversely, CTV received 12% of TV ad spend and accounted for 63% of viewing time. It’s clearly time for advertisers to course correct and follow the audience.
- CTV ad inventory is highly fragmented. Attempting to orchestrate multiple channels of supply on a single buy is a heavy lift and presents an almost impossible task when attempting to manage frequency control and price efficiency. The most effective way for buyers to solve this is to work with a unified source of supply, where the strength of the buy can empower cost of impression savings, and supply channel orchestration can be aligned to ensure effective frequency control.
- CTV is a measurable full-funnel performance engine. The combination of CTV’s matured reach, audience-targeting capabilities, and addressable nature enable it to be effective at influencing all stages of the consumer journey – from upper-funnel brand building to lower-funnel sales conversions.
It’s undeniable that CTV has become an essential tool for advertisers to reach audiences at scale. Take the SpotX University course and download the guide to take your CTV expertise to the next level.
Paul Calderbank is the Senior Director of Marketing Insights and Innovation at SpotX, where he leads the development of sales-focused marketing material and is a senior custodian of the SpotX brand. He has an extensive background in media and advertising, including marketing roles at Gannett and Haymarket Media, and leadership roles at several ad agencies. He has served on the management team of a successful startup acquired by Oracle Data Cloud, where he went on to build and manage the Media & Entertainment consultancy team. Originally from Manchester, England, Paul currently lives with his wife and two children in Denver, Colorado.