The Time to Advertise on CTV Is Right Now

As streaming audiences grow, here’s how to connect across platforms

The rise of multi-screen content consumption, combined with recent technological advancements, has permanently changed how people consume video and television content.

While traditional TV viewing still accounts for the majority (53.7%) of total time spent with video, the past few years have shown that connected TV (CTV) is growing rapidly. It’s the main driver in digital video growth, which is expected to surpass linear TV by 2024, according to eMarketer.

This isn’t surprising. Content owners and distributors have increased the content available on CTV devices, meaning viewers now can watch on-demand entertainment and live content, such as sports and news, in the same place. Audiences are still watching TV, but on their own time and in their own way.

The rise of CTV advertising

How have TV advertisers reacted to these video consumption shifts? Advertisers know that the TV screen remains one of the most powerful tools to reach and deliver their message to viewers at scale. But as the definition of the “TV screen” evolves, they’re looking not just to deliver their messages through satellite or cable, but now the internet as well.

Since viewers can now watch what they want whenever they want, augmenting TV advertising with CTV is a winning strategy for marketers. Although traditional linear advertisers may be familiar with the premium live TV content new to CTV, digital ad tech and activation tactics can be confusing and overwhelming.

For traditional digital buyers and programmatic traders interested in diving into CTV, it’s important to understand the differences between the short-form desktop or mobile inventory they were previously buying, and the premium TV inventory that CTV offers.

4 points to keep in mind

Opportunities abound for marketers looking to invest more in CTV. Advertisers are already shifting budgets over to CTV, where ad spend is expected to grow by double-digit rates through 2026 and exceed half of traditional TV spending by that time, according to eMarketer.

With this in mind, here are a few considerations when approaching CTV:

Live content: Streaming and OTT services will grow their time spent more quickly than others, especially those with a robust live TV offering. Tapping into publishers, like DIRECTV STREAM, with live sports and tentpole events can help reach engaged viewers with guaranteed in-game/event impressions.

Pricing: CTV pricing will look more like TV pricing than traditional digital video pricing. This is due to the influx of premium TV content, which drives higher engagement and traditionally is found in authenticated environments which decreases ad fraud.

Key metrics: Ad fraud and viewability are leading concerns when buying digital video, but when evaluating partners on CTV, look for partners with authenticated environments. Within authenticated in-app environments on CTV, fraud is not as much of a risk and impressions in-view are 100%—because it’s TV. Instead, marketers should focus on metrics such as video completion rate or performance metrics, such as visits or conversions, which give more insight into consumer behavior after viewing an ad.

Automation: Don’t shy away from automation and data-driven tactics such as addressable and programmatic advertising, which enable linear and digital marketers to combine the power and scale of TV with digital technology and data. Marketers are also able to gain more visibility into their campaigns and ROI, with the ability to look at performance to gauge the effectiveness of their campaigns beyond the click.

Viewers are only going to expect more relevant and personalized advertising experiences across their screens. The time is now to start leveraging the available tools and technologies in CTV advertising to reach your target audiences, hit your KPIs and make every ad dollar count.

Rose McGovern is Group VP, digital client success and operations for DIRECTV Advertising, responsible for leading digital direct and programmatic account services, ad operations, digital integrations along with digital inventory and yield management across all digital products and endpoints.