Why CTV’s the Hottest Marketing Channel of the Year
Jun 11, 2024
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Director of Advanced TV Marrika Zapiler joins the hosts to discuss the rise of Connected TV (CTV) as a top marketing channel in 2024. They cover CTV viewership, ad revenue, marketer sentiment, ad inventory purchasing, costs, targeting options amid declining cookies, and the importance of testing new channels. Learn about the complexities and opportunities of CTV advertising.
CTV combines TV reach with digital targeting, appealing to 18-54 demo.
Programmatic CTV buying allows better scalability with audience targeting.
Deep dives
Understanding CTV Growth and Reach
Connected TV (CTV), known as streaming TV, offers the brand building reach of television combined with the targeting and measurement capabilities of digital. CTV's growth is remarkable with over 28 billion dollars expected in the US market this year, reaching 233 million users, and tapping into the majority of the US population, particularly appealing to the 18 to 54-year-old demographic. Unlike traditional national TV, CTV provides opportunities for smaller brands with more measurable tests.
Challenges in CTV Marketing
The initial excitement around CTV marketing has slightly waned due to various challenges faced by advertisers. High costs, particularly for premium inventory like Netflix, measurement complexities, attribution difficulties, ad fraud, and privacy concerns have impacted marketers' experiences in the CTV space, suppressing the initial hype. The lack of straightforward measurement methods and the competitiveness of CTV advertising costs can deter some marketers.
History and Evolution of Connected TV
The evolution of CTV dates back to the 1980s, with Japan leading the integration of internet connectivity with television sets. Streaming technologies like Real Player in 1995 and the launch of YouTube in 2005 marked significant milestones in the transition towards on-demand content consumption. Platforms like Netflix and Hulu revolutionized the industry by offering original content and on-demand viewing experiences, altering the landscape of traditional cable TV.
Navigating CTV Buying Methods
CTV inventory can be purchased directly or programmatically, each method presenting unique benefits and challenges. Direct buying offers specific control but limited targeting and measurement capabilities, while programmatic buying through a demand-side platform (DSP) allows for audience targeting across various sources with improved scalability and measurement. Understanding the nuances of both approaches is crucial in optimizing CTV advertising strategies.
Connected TV is one of the most popular new marketing channels of 2024. According to eMarketer, CTV ad revenue will reach $28 billion this year. But it’s also one of the most complex and confusing channels.
This episode is dedicated to fixing that. Elena, Angela, and Rob are joined by Director of Advanced TV Marrika Zapiler to break down how CTV works and why it’s attracting so much attention right now. Plus learn how to work around the channel’s complexities to drive performance with CTV campaigns, even as the media landscape continues to change.
Topics covered:
[01:00] Connected TV viewership and ad revenue
[03:00] How do marketers feel about CTV?
[06:00] The history of streaming and CTV
[12:30] How is CTV ad inventory purchased?
[19:00] How much does CTV advertising cost?
[22:00] Targeting options on CTV as the cookie declines
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