It’s not often that we see a new advertising channel exceed expectations, but that’s exactly what’s happening with CTV. In the last few years, CTV’s popularity with audiences and advertisers continues to grow. We all knew it would be a major player, but the speed that it arrived is incredible to watch.
Even more exciting, all numbers point to this only being the beginning. Forecasts and trends are all predicting that CTV will become even more critical for media mixes, especially for companies looking to drive real business results. Need proof? Here are four trends we think point to the growing influence of CTV ads.
Bigger Viewership Across Streaming Services
The bigger the audience on any advertising channel, the more touchpoints companies can have across the customer journey. Audiences with CTV devices have steadily increased for the past few years, and are expected to continue to grow until 2028. In fact, reports show that the only device customers spend more time on than CTV is mobile.
Additionally, new streaming services are released on a fairly consistent basis. While the number of customers on each streaming service may vary, the fact that each service offers unique programming means that companies can learn more detailed information about their target customers behaviors and interests. With more information, audience targeting gets more precise and results are more scalable. These are all signs that tell us CTV will get more effective as an advertising channel.
Increased Ad Spend
Another promising sign we’re seeing, both from GroundTruth customers and the industry, is increased spend on CTV ads. Nothing is a better indication of real business than companies choosing to put more marketing dollars towards a single advertising channel.
In 2024, advertisers are expected to spend over $28 billion dollars on CTV ads, a growth of 18% over last year. Growth like that tells us that CTV is no longer considered optional for businesses. Brands need a presence on CTV to get in front of the right audiences throughout the funnel.
It also tells us that competition for the best placements will only go up from here. Marketers need to be strategic about their messaging, creative, and most important, their targeting. Audience segments built on online browsing alone won’t cut it. Companies need to understand exactly who shows up in their stores, why, and what products and services they buy.
Rise of Shoppable TV
A more recent trend that we believe proves the future of CTV is the arrival of shoppable ads on CTV devices. GroundTruth CEO, Rosie O’Meara, predicted this shift at the beginning of the year during her AdWeek CommerceWeek discussion on CTV. She reminded everyone that at some point purchasing anything on your phone felt like a risk. Now, we pay for entire vacations using our phone.
The same evolution is happening on CTV devices. Streamers are rolling out interactive ads that allow viewers to make purchases directly on their smart TV. What’s more, with most advances in technology, younger people are more likely to adopt than older generations. But with this trend specifically, older generations are used to home shopping networks and purchasing products in real time from ads they see on TV. That may make them more likely to adopt the behavior faster than other technology, which is a great sign for companies looking to reach audiences across generations.
Viewing Behaviors are Shifting
Finally, as CTV audiences grow, so does our knowledge of viewing habits. Not only do we have more identifiers to use to understand, we have more ways of collecting data from those identifiers. Everything from CTV devices, to mobile devices, and even point-of-sale systems give us an insight into who reacts to ads.
To add to more precise data, we are also seeing a rise in co-viewing, where groups of people gather to stream a show together. Viewing parties of popular shows and major live events bring different audiences into the same room, which increases attention. For businesses, this change means more engaged viewers on each ad, plus ad spend goes farther, as a single ad can reach across multiple audience segments at once. Getting more out of every dollar is exactly what marketers are looking for (and getting) right now.
Invest in CTV with GroundTruth
The case for why CTV must be in your media mix is clear. All signs point to sustained growth and better real business results. If you are looking to launch your next CTV campaign, contact us today.
