As advertisers wrestled to recalibrate their media spending in the pandemic, they didn’t overlook a “seismic shift” to Connected TV platforms. In fact, eMarketer estimates that “CTV” U.S. ad spending grew by 40.6% in 2020. Today, networks are continuing to place a greater emphasis on CTV within their upfronts.
What does this mean for broadcast TV and its clients? AudienceX COO Jason Wulfsohn shares his thoughts in an exclusive thought piece for RBR+TVBR.
By Jason Wulfsohn
The dynamics of the connected TV market fundamentally changed in 2020.
The sudden and significant audience growth in this channel has altered the trajectory of CTV advertising for the indefinite future.
For challenger and midmarket advertisers, it’s important to pay attention. As CTV grows and evolves, so too does the opportunity for brands with less formidable budgets to
strategically drive performance while tapping into the most powerful branding mechanism in the world.
With the lockdown of audiences in 2020, behaviors altered in many areas of their lives, which included spending a greater portion of their media time with streaming TV services. As advertisers wrestled to recalibrate their media spending in the pandemic, they didn’t overlook this seismic shift. eMarketer estimates that CTV U.S. ad spending grew by 40.6% in 2020 to more than $9 billion. That growth is accelerating this year, with CTV ad spend expected to hit $13.41 billion, and that figure is expected to go on to more than double by 2025.
Today, networks are continuing to place a greater emphasis on CTV within their upfronts. The majority of activity is occurring in programmatic channels, making CTV far more accessible to challenger and midmarket brands than broadcast and linear buys. This year, U.S. programmatic CTV ad spending will grow 54% to hit $6.73 billion, rising another 29 percent next year to $8.67 billion.
Big Brand Interest, Small Brand Advantage
The world’s biggest advertisers have started to get the message on the importance of CTV
within their overall media mix. However, many are still focused and heavily invested in linear broadcast advertising and are only shifting dollars toward CTV audiences at the margins of their spend activity.
For many big brands, CTV represents a way of incrementally extending their audiences beyond what they’re finding with the hundreds of millions they’re spending on linear. For challenger and midmarket brands, the CTV opportunity is quite different. These brands have largely been locked out of traditional TV advertising due to budget constraints. Limited linear TV inventory has typically been the playground of the world’s biggest brands and their correspondingly large budgets.
In this regard, CTV serves as the great equalizer for brands that can’t afford (and frankly don’t need) to buy into linear TV. By enabling smaller-scale buys that are targeted and addressable, CTV represents an asymmetrical solution that levels the playing field for challenger brands looking to drive performance in competitive markets. Even without broadcast-level budgets, these brands can drive share of voice where it matters most and do so in ways that integrate seamlessly with their online programmatic spend.
The CTV ad space will continue to evolve as bigger brands pivot their budgets in this direction, but the digital and programmatic nature of the opportunity—not to mention the growing audience and inventory opportunities—will continue to represent a significant competitive advantage for challenger and midmarket brands that embrace the opportunity. As a result, in the coming years, the competitive brandscape will evolve and diversify as well.
Those who want a preview of emerging category leaders need only tune into the CTV advertising space.
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RBR+TVBR wants to know as we plan for the future today? Please share your thoughts with Editor-in-Chief Adam R Jacobson via email at
adam@rbr.com.