CTV Advertising Will Become Mainstream In 2023Reading Time: 4 minutes
With giant streaming platforms embracing ads, CTV landscape is becoming advertiser-friendly, making it convenient for advertisers to connect with audiences with ads relevant to their interests. This also benefits consumers, as ad-supported offerings at a discounted price are a way for them to continue streaming their preferred content without having to pay for expensive subscriptions. Moreover, CTV advertising allows advertisers to engage and interact with a whole new segment of potential users. While enabling them to measure cross-platform and cross-device campaigns, advertising on CTV helps precisely target consumers with contextually relevant ads.
CTV Advertising Trends to Watch:
1. Growing Need For Diversification
In 2023, diversification will be crucial for advertisers as CTV advertising possibilities increase. Although content is vital for streamers to gain loyalty and retain subscribers, advertisers will need to diversify their strategies and approaches from one streamer to the next. This is even more important now that streaming platforms are either honing in on their niches or broadening the scope of their content.
Surrounded by a wide variety of content, viewers often get distracted and lose interest in the service over time. They switch between services by subscribing and unsubscribing until the next must-see content release on a platform. This results in audience churn, which is a recurring problem for streaming services.
To thrive and prosper in the next era of CTV, advertisers need to adopt diversification as their key advertising strategy. Rather than dedicating resources to one streaming platform, advertisers must follow their target audiences wherever they are watching, irrespective of the show. This way, advertisers can make sure that they are connected with the trendiest new series or shows, regardless of who is currently at the top or has a surprise blockbuster show the next day. Thus, there is less emphasis on creating different creatives and more focus on utilizing certain streamers based on brand or campaign.
2. Emphasis on Data-Driven Content Strategies
CTV platforms have access to owned audience data. In addition to knowing what content the viewers are watching within their networks, they also know about their watching preferences, including when and how they are watching. Though there is still much potential for comprehensive audience insights, the data that is now available is of great importance. They can leverage it to employ data-powered content strategies that are more likely to be well-received by viewers. Apart from enabling cross-channel digital content distribution, this will also help streaming platforms eliminate the gap between subscriber acquisition and retention. By emphasizing audience enrichment strategies, streaming services can customize their campaigns to suit different kinds of viewers.
3. CPG Brands to Embrace Connected TV
With more brands flocking to CTV advertising, CPG brands are the ones that are leading the race and making the shift faster than other categories. In fact, CTV devices accounted for 52% of all video ad impressions for CPG ads in 2021. Most of these impressions were a result of interactive ad formats with data-driven personalization. CPG advertisers are continuing to shift their budgets from linear TV to CTV in order to increase their ability to effectively reach younger audiences, that can’t be reached on linear. However, the majority of CPG brands rely on third-party purchase data that provides purchase information but lacks buyer insights. To entice these retailers, streaming providers need to leverage their own first-party data and insights.
Key Benefits of CTV Advertising
1. Precise Audience Targeting
CTV allows advertisers to reach their audiences based on behavior, demography, or geography. Utilizing this for effective audience segmentation, advertisers are able to target viewers with relevant advertisements that resonate with their needs.
2. Cost-Effective Advertising
Compared to traditional cable or linear TV, CTV is a much more economical choice for advertisers. By targeting a specific demographic they intend to reach, advertisers can be sure of spending every dollar of their advertising budget on their intended target.
3. Engaged Audiences
On CTV devices, ads cannot be skipped, resulting in a higher video completion rate. Additionally, since viewers are already watching long-form content, there is a greater likelihood that they will also pay attention to the video ad that is being played.
4. Cookieless Advertising Environment
Unlike web or mobile advertising, CTV does not rely on cookies to serve advertisements. It instead leverages IP addresses, device IDs, and other useful first-party data to target users. This is even more beneficial for advertisers, considering the upcoming cookieless advertising future.
Preparing For A Bright CTV Future
CTV advertising is here to stay for a long time. Now the question is no longer whether or not to jump on the “bandwagon,” but rather, how to stay at the forefront and compete as this new market continues to evolve. The key to getting ahead of these trends is to have a data-oriented strategy. Advertisers need to gain precise insights into the CTV audiences to enrich their understanding of streaming viewers for better targeting and reach.
VDO.AI‘s intensive audience mapping strategies and multidimensional targeting approach help advertisers deliver personalized experiences across screens. With highly targeted and engaging CTV ads, VDO.AI allows advertisers to seamlessly connect with their audience profiles in the CTV landscape.
Connect with us here to navigate this dynamic and rapidly changing industry.