3 Reasons Why CTV Advertising Will Boom in 2024
As we embark on a new year, it's crucial to take a moment and analyze the dynamic shifts and significant advancements that characterized the CTV advertising landscape in 2023. This retrospective is not just an exercise in understanding the past year's trends; it's a vital step in anticipating and preparing for the expected boom in CTV advertising in 2024.
GothamAds actively monitors changes in the CTV landscape to provide high-quality services to our partners and clients. 2023 was no exception. This year, the landscape of CTV advertising experienced several trends — one of them is the growth in ad-supported streaming services. Major streaming platforms like Netflix and Disney+ introduced ad-supported tiers, making CTV advertising more accessible and increasing reach. This trend was driven by the growing number of cord-cutters and a shift away from traditional cable TV, enhancing the appeal of CTV advertising to a broader audience, including baby boomers.
According to a renowned market research company, 68 per cent of American households with televisions had a device that could connect to the internet in 2023. This includes smart TVs, streaming devices like Roku and Amazon Fire TV, video game systems, and Blu-ray players. Furthermore, the number of CTV users among generations is constantly increasing. The number of CTV users in the USA is expected to increase from 230 million to 234.1 million by 2024.
In 2023, there was a notable increase in the implementation of automation for enhancing and scaling CTV advertising campaigns. This technology was instrumental in creating customized user experiences, allowing for promotions and messages to be finely tuned to individual preferences and behaviours. This strategy improved real-time data tracking, giving advertisers insights to refine their campaigns for future success and informed decision-making. Concurrently, artificial intelligence further transformed CTV advertising, presenting new possibilities and advancements in the field—AI-enabled advertisers to upgrade their campaigns effectively by continuously monitoring and analyzing data. AI algorithms were adept at identifying patterns and trends, aiding advertisers in making strategic decisions to boost the effectiveness of their advertising efforts. Utilizing AI-powered predictive analytics, such as tools for forecasting customer behaviour, advertisers adjusted strategies to maximize the return on investment from their advertising activities.
The demand for automation and AI will grow in 2024 and beyond. This growth is expected to ease the entry of new ad tech companies into the market and provide additional revenue streams for technology vendors.
One of the biggest changes in 2024 will be shifts in viewership. Recent years have witnessed a transition towards Free Ad-Supported Streaming TV (FAST) networks. This trend is largely attributed to the increasing costs of Subscription Video-On-Demand (SVOD) services, prompting a substantial number of viewers to explore more affordable or entirely free alternatives. Data from eMarketer reveals that, as of 2023, 57% of TV viewers engage with content on FAST channels. Given the expected economic uncertainties in 2024, it is reasonable to predict a continued migration of viewers towards these platforms.
These FAST channels will create an incredible opportunity for advertisers in 2024. They will have the capability to connect with their target audience more effectively, offering a greater array of choices than previously available.
Centering viewers in the heart of CTV campaigns, advertisers will effectively counteract the challenges of media fragmentation. By focusing on specific audience segments instead of being tied to a particular platform, advertisers will engage with their audience across various venues where they enjoy their preferred content.
In conclusion, as CTV increasingly becomes a pivotal element in global marketing strategies, we anticipate significant transformations. These range from the evolution of AI-powered marketing techniques to enhanced transparency in reporting. Staying abreast of these industry developments is crucial for GothamAds.
