Connected TV (CTV) is now one of the main drivers of ad spend growth in Canada - and it shows no signs of slowing. Industry forecasts predict that CTV spend will grow by 26.4% by the end of 2024, and a further 40.9% next year. Meanwhile, linear TV spend is flat, and shows no signs of a resurgence.
This means hundreds of millions of dollars continue to migrate from linear television to a channel where advertisers believe they have a much better chance of capturing viewer attention. In terms of time spent, CTV is even narrowing the gap on mobile devices. This makes it a very exciting opportunity for brands and advertisers to capitalize on the evolving TV consumption habits of consumers, while also offering more precise audience targeting and performance measurement. CTV makes it much easier to avoid wastage and truly maximize budgets.
Appointment Viewing is Decreasing
Outside of live sports (there's a reason streaming networks have also entered the live TV rights' battle for major sports leagues), appointment viewing on cable channels is disappearing fast. And even with sports, CTV is offering enhanced coverage - as seen with the round-the-clock and on-demand coverage of the Paris Olympics available through platforms like Tou.TV and CBC GEM in Canada, and NBCUniversal's Peacock in the US. In fact, Paris 2024 ranked as the most-streamed Games ever on CBC Gem, with Canadians spending 15.5 million hours on the platform - up 307% over Tokyo 2020.
Viewers are now in total control of the television schedule, empowered by the likes of Netflix, Amazon Prime or Disney+ to decide what to watch and when through their Roku boxes or Samsung smart TVs. This more deliberate behavior provides fertile ground for smart advertisers, who can present their content at moments when viewers are much more fully engaged.
At the same time, marketers have to remain nimble and not take the power of CTV for granted. There are four key factors we believe marketers should stay on top of to ensure CTV advertising remains impactful, and doesn't simply become something viewers can't wait to skip.
Creativity is king again
When linear television advertising was at its peak, brands took pride in creating the most engaging and entertaining content. Why? They had to. There's no bigger motivator to change the channel than boring or annoying ads. Once again, we should earn the right to be memorable. Instead of leaving viewers waiting for the 'Skip' button to appear, we should be thinking much more about providing experiences which entertain and stick in the mind. Yes, you got your key messages across - but will they stick by being delivered in a way that's memorable?
Avoid the 'all-in' digital trap
CTV is extremely exciting, and when used correctly it can be very impactful. But this can be dangerously seductive for marketers, and we must resist the urge to go all-in. As media professionals, we must be responsible and offer a balanced video approach by integrating CTV into a holistic media mix. That way, we ensure that our clients can effectively reach their target audiences across both traditional and digital environments. Interestingly, the same report which showed the growth of CTV also reported an anticipated 10% growth in out-of-home revenue, reinforcing the market's desire for a healthy mix. Guess what? The billboard isn't dead after all.
Beware saturation point
Humans are pretty resilient when it comes to the amount of media they are able to consume. But as long as we keep adding new media channels and content, we'll eventually reach a point where all of this new content blends into the background and simply becomes noise. This makes it all the most important for marketers to reach their audiences with campaigns which stand out, so they can truly understand and recall the message amongst the overwhelming volume of competing content their brains are tasked with consuming.
Consolidation is coming - so be ready!
Currently, the CTV landscape is highly fragmented. How many streaming services do you currently subscribe to? But this isn't sustainable long term. Consumers are highly selective on what services account for how much of their household budget, and at some point they'll say “no more.” This means we'll start to see streaming services increasingly being made available as bundles. This trend is already happening in the US and will likely gain more momentum elsewhere. As streaming networks ironically devolve into something more akin to a traditional cable package, we may see a resurgence in longer ad formats, moving away from the 10 or 6-second spots. Marketers should be prepared to adjust accordingly.
CTV is just getting started. And as streaming technology gets ever more sophisticated, there'll be increasing opportunities as well as challenges for marketers. Anticipating where that space is heading, as well as meeting consumers where they are today, can provide a distinct advantage for savvy advertisers.
Interested in taking your CTV campaign to the next level? Let’s talk .
