During the recent pandemic, we all spent more time than usual watching television. When we weren’t obsessed with the latest details about COVID-19, we were trying to escape reality. We also changed how we watched TV, and our viewing of connected TV programming soared. Through most of 2022, it seemed that consumers had limitless appetite and budgets for subscription programming as we followed our favorite shows on platforms like Netflix or Hulu. But recently, some consumers are pulling back on their subscriptions. And this shift has encouraged more media companies to roll out free ad-supported TV. Through these formats, your clients can reach their target audiences.
Connected TV and the Lure of FAST
A recent survey by LG Ad Solutions finds that 53% of consumers are concerned about the cost of their streaming subscriptions. In fact, 32% plan to cut the CTV subscriptions they have in the next year.
Now, consumers could return to watching linear TV as an option. But only 22% of consumers have this plan. Who can blame them? They’ve grown accustomed to watching programs when it’s convenient for their schedule. So, they are turning to FAST. Around 27% of consumers are already spending 2–5 hours a week watching this form of TV.
The Rush to Advertise on CTV
Your client’s competitors may already be advertising on CTV. A report by the IAB indicates a projected 2023 growth rate of 14.4% in connected TV ad spending. Marketers are clearly chasing consumer attention. And to help fund the cost of CTV, they’ll be cutting back on the linear TV advertising, roughly 6.3% in 2023, indicates IAB analysts. The interest in digital video, which includes CTV, will drive the sector to 22.4% of the ad market this year.
eMarketer has provided its own projections on this trend. For 2023, their analysts expect CTV advertising to amount to $25.09 billion and linear TV to generate ad revenue of $61.31. And while 90% of CTV display ad spending is programmatic, 10% is not.
What Your Clients Can Achieve
Whether consumers are viewing content on a smart TV or with a device such as a Roku that is connected to a TV, they are findable on the internet. Their viewing habits are being stored online, along with other data such as where they go online after seeing ads.
When buying ads, usually through a demand-side platform, your clients can specify who they are targeting such as geographic location, age, and purchase history. With a robust metrics system, they can also see who watches the ads. This data-rich environment makes it much easier for your clients to connect with the individual who might buy what they are selling. And this kind of targeting allows for a more efficient use of advertising funds.
While much of the noise in the marketplace about connected TV has been about national advertising, things are changing. In a Marketure analysis of the CTV market, on Digiday, the experts point out that “local [media] sellers are increasingly finding CTV to be a potential growth channel.” There’s a continuing concern that megaplayers like Google and Amazon want to control this space using their wall gardens. However, “a growing number of [media companies like local TV stations] are specifically investing in DSP solutions designed for local CTV campaign activation.”
Our research, AudienceSCAN, on AdMall and powered by SalesFuel, indicates that 35% of Smart TV/Streaming Device Users have taken action as a result of ads they’ve seen on these platforms in the past 30 days. In the next few months, around 25% of these consumers will be attending a music festival, state or county fair or a popular singer or band concert. Beyond that, around 14% plan to invest in new flooring. Check out the full AudienceSCAN report for more details and then talk with your clients about the power of connected TV advertising.
Photo on Pexels by Cottonbro Studio.