As the world of advertising continues to evolve, Connected TV (CTV) has emerged as a powerful platform for reaching audiences. With its ability to deliver targeted, immersive content to viewers on their connected devices, CTV advertising has gained significant momentum.
Here are five trends to watch for in CTV advertising in 2024.
2024 CTV Advertising: What to Expect
1. Continued Growth in CTV Viewership
In 2022, 87% of US TV households had at least one Internet-connected TV device, including connected Smart TVs, stand-alone streaming devices (like Roku, Amazon Fire TV sticks or boxes, Chromecast, or Apple TV), connected video game systems, and/or connected Blu-ray players.
This compares to 80% with at least one connected TV device in 2020, 69% in 2017, and 38% in 2012. In 2024, expect this number to grow even more as consumers continue to adopt streaming services.
2. Surge in Programmatic CTV Advertising Spend
As more consumers adopt streaming services, brands are following suit and programmatic CTV advertising is expected to experience substantial growth. In 2023, connected TV (CTV) advertising spending in the United States is projected at 26.92 billion U.S. dollars.
At the current pace, CTV ad spend is expected to grow to 43.59 billion U.S. dollars by 2026.
3. Advanced Targeting Capabilities
Targeted advertising on CTV platforms allows advertisers to reach specific audiences effectively. A survey conducted by the IAB revealed that 84% of advertisers believe CTV delivers better targeting capabilities compared to traditional linear TV (Interactive Advertising Bureau).
In a study by Premion, respondents listed precision audience targeting as one of the top benefits of CTV.
Examples of audience segments include:
- Demographic Segmentation: factors such as age, gender, income, education level, and household composition.
- Geographical Segmentation: geographical locations such as specific city or region to more granular targeting options like ZIP codes or designated market areas (DMAs)
- Behavioral Segmentation: targeting audiences based on their past behaviors and activities such as previous interactions, content consumption patterns, search history, and app usage.
- First-party segmentation: data collected directly from a brand’s own customer base.Contextual segmentation: Displaying ads to users based on the program, genre, and streaming app they are watching.
- Retargeting: Serving ads to people who have previously interacted with a brand or website.
In 2024, expect brands to become even more sophisticated in the ways they segment audiences in order to deliver highly personalized and relevant ads.
4. Shoppable Ads and Enhanced Interactivity
CTV advertising will increasingly feature shoppable ads, allowing viewers to make purchases directly from their connected devices. In 2024, it is estimated that US shoppable video sales will reach $16.88 billion, representing 15.2% of total US retail e-commerce sales (eMarketer).
Shoppable ad formats take the viewer from inspiration to purchase seamlessly. By incorporating direct purchasing capabilities within the ad experience, advertisers can shorten the conversion funnel and boost sales.
Here are some shoppable ad formats in CTV advertising:
Advertisers can showcase products or services within the ad, providing viewers with relevant information and a direct path to purchase. With a click or tap, viewers can access detailed product descriptions, pricing, and add items to their shopping cart.
QR Codes and Shortlinks:
Advertisers can integrate QR codes or shortlinks into the ad experience, enabling viewers to scan or click for instant access to the product page or a special promotional offer. This streamlined process simplifies the path to purchase and enhances viewer convenience.
With the increasing prevalence of voice-activated devices, advertisers can leverage voice commands in shoppable ads. Viewers can use voice assistants to make purchases directly or add products to their shopping lists, making the buying process effortless.
5. Integration of CTV with Cross-Channel Campaigns
CTV will increasingly become a central component of cross-channel advertising strategies. It is projected that by 2024, 59% of US advertisers will integrate CTV into their omnichannel campaigns (eMarketer).
According to a research study by Digiday, respondents stated that an appeal of CTV advertising is that it can fit in seamlessly with an existing omnichannel strategy. A majority of marketers they surveyed are running CTV ads alongside existing channels, especially social media, display advertising, and mobile video.
As CTV advertising continues to gain momentum, the landscape is set for significant growth and continued innovation in 2024. With the rise of programmatic and addressable advertising, enhanced targeting capabilities, and the integration of CTV into cross-channel campaigns, advertisers have a unique opportunity to connect with a growing and engaged audience.
Connected TV Advertising Success Kit
Want to learn more about how to get started with CTV advertising? Download our Connected TV Advertising Success Kit for the latest tips and strategies.