Digital advertising’s ad gold rush has been ascendent for nearly 30 years. But consumer habits have changed. The industry is now in the midst of the next big event, an ad renaissance sparked by one of the fastest-growing channels in ad land: connected TV.
The streaming ad landscape is rapidly maturing
If you haven’t seen the endless stream of headlines charting streaming television’s ascendancy lately, you are in for a revelation. Streaming viewership has overtaken linear television. Advertisers are committing record amounts of budget, and an eMarketer analysis estimates that total CTV spend will approach $30 billion in 2024.
With consumer and advertiser demand so unmistakable, publishers have stepped up to the plate. Ad-supported offerings have exploded over the past year alone. Netflix, Disney, Peacock, Paramount+—the list of big names introducing new ad tiers is long. These recent additions join hundreds of existing streaming channels and apps, to create a robust offering of content (and ad inventory) that’s bringing the CTV ecosystem to maturity and making marketers rethink how they spread their budgets.
Because now advertisers are realizing the old ways of advertising on TV can’t compete. When you can target and measure TV ads like any other digital channel, the ad formats and backend technology that have sustained television for decades start feeling antiquated by comparison. And it’s getting easier and more powerful every day, with innovations that routinely expand the channel’s full ad potential.
Case in point, Netflix recently announced a slew of new updates to its offering for advertisers, which includes new formats, targeting and a better user experience.
This isn’t unique to the streaming giant, either—the industry is at a point in CTV’s lifecycle where ad solutions will roll out updates on a consistent basis. Just like streaming services have fought tooth and nail for viewers, they’ll now do the same for advertisers.
TV ads, but more
Formats and user experience aside, CTV ad tech itself is starting to address advertisers’ real needs. Automated optimization, programmatic media buys, audience targeting and attribution—these backend features can make or break campaigns of any size.
MNTN has seen that power play out in real time with its recent platform update, Next Gen. After upgrading its audience targeting and auto-optimization features, advertisers have already seen 27% lower cost per acquisition and 38% more site traffic, on average. It’s proof that serving ads to the right audience based on real-time performance data makes a difference—and proof that this industry will undoubtedly come up with even more innovations and enhancements to refine this process, and boost advertiser outcomes, in the coming years.
The golden era of streaming (ads)
The best thing about the state of the industry currently is how it’s transforming where it will be tomorrow. Yes, these innovations in CTV ad tech are making an immediate impact, but what is most exciting is knowing that these are setting a foundation for what’s to come. Every new ad format or example of backend wizardry may not be a resounding success, but the ones that are a success will get the industry that much closer to achieving streaming advertising’s full potential.
Every ad renaissance is an exciting time, and this one is just getting started. By this time next year, the ad landscape in general will be smarter, more efficient and more sophisticated than ever.
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Hannah Burke is the director of product for ad buying at MNTN, where she oversees product vision and development for all aspects of the ad buying process including pixel, targeting, bidding and performance.
