It’s nothing new that video advertising is thriving despite the recent dip in ad spend. Use of CTV and OTT channels has grown and they’re only getting more popular as streaming services adjust their subscription tiers and open advertising to larger audiences.
Let’s break down why your brand should start taking more advtange of the shift and some tips to do it.
Streaming Ad Growth Facts to Know:
- In 2022, there has been a 35% increase in ad spending, which translated to more than $6.4 billion.
- Two-thirds of the digital video dollars committed upfront were spent against streaming services.
- eMarketer projects that total U.S. CTV spend (upfront and scatter) will reach nearly $19 billion this year.
The Benefits of CTV:
- Audience targeting ― It goes without saying that the days of cable guesswork are gone. More accurate and strategic allocation of budgets to specific, high-value audiences.
- Original programming ― You have more options for the type of content you can be feature alongside.
- Better measurement ― Data allows for more accurate view of who each ad has reached.
- More video eyeballs ― The pool of additional impressions helps offset linear TV viewing declines
Potential CTV Challenges:
- Uniformity and measurement ― This is where too many options are a hit against CTV ads. It prevents the ease of buying across streaming vendors and the sharing of data between them.
- Frequency capping – The lack of shared data and the sheer number of vendors running CTV makes it difficult to set frequency caps.
What Does It Mean for Brands?
Overall, the positives of spending on CTV advertising outweigh the challenges.
Brands should be experimenting with multiple vendors to determine what content and format fits your marketing objectives the best.
Check out the full piece by Advantage Solutions for more tips on CTV media plans and predictions for Netflix and Disney+.