Over the last few years, the connected TV (CTV) and over-the-top (OTT) market has exploded. To recap, CTV/OTT marketing is the art of strategically displaying targeted ads to viewers watching movies or shows via an internet-connected television.
Currently, the CTV market accounts for 4.7% of total ad spend, which translates to $13.1 billion. However, this number is sure to increase in the coming years, as households throughout the U.S. continue to abandon traditional cable and make the switch to connected TV media.
As CTV/OTT marketing becomes a more mainstream form of advertising, you may be wondering what the future holds for this emerging industry. If so, you are not alone. Marketing professionals and businesses of all types are asking this very same question. They want to know “what’s next” for CTV advertising so that they can capitalize on the ever-evolving forms of digital marketing.
With this in mind, our experts have identified some of the top trends that will shape the CTV advertising industry in the coming years.
The CTV Market Will Keep Growing
We will kick off our list of CTV advertising trends with the most obvious: CTV/OTT advertising will expand its market share over the next few years. This is due to one simple fact – internet-connected TVs are becoming the norm.
According to a National Interest report, four out of five U.S. households have one or more internet-connected TVs/smart devices. Slowly but surely, TV manufacturers are phasing out non-internet connected devices.
Advancements in technology allow these manufacturers to produce better CTVs for less, which increases the accessibility of this popular amenity.
Naturally, greater accessibility will lead additional consumers to “cut the cord” and switch to streaming services like Netflix or Hulu. As a result, many companies that still invest in traditional TV advertising will begin to shift their budgets towards CTV/OTT marketing.
Ads Will Ultimately Become Interactive
CTVs are not the only technologies that are becoming more accessible. Top internet service providers have been investing millions of dollars into their networks in order to provide users with faster browsing speeds. Enhanced internet performance means that CTV marketers can get more creative with their advertisements and this will open the door for interactive ad content.
Innovative CTV advertising firms have already begun to create this kind of marketing content. Interactive ads are an excellent way to increase audience engagement, setting your brand apart from the competition and generating quality leads.
User Experience Will Remain a Top Priority
As CTV advertisements become more advanced, marketing companies must ensure that the user experience remains a top priority. Therefore, any interactive components of an ad must be easy to use, relevant, and to the point.
While the average consumer will tolerate an intriguing or captivating CTV ad that disrupts their favorite TV show, they will quickly become frustrated when presented with bland or hastily designed content.
Business Will Have More Precise Targeting Capabilities
One of the most exciting trends for the CTV advertising industry is an increase in precise targeting capabilities. When advertising on standard television networks, you can only target ads based on a geographic location, such as city, county, or market zone. While this approach will attract some attention to your business, it can also be very wasteful.
Conversely, CTV/OTT marketing firms can actually create local advertising campaigns based on users’ IP addresses. This means that you can target specific neighborhoods, communities, or zip codes.
By zeroing in on particular audiences, you can drastically increase the effectiveness of a CTV ad campaign.
Artificial Intelligence Will Forever Change OTT Marketing
While OTT/CTV marketing campaigns already leverage AI technology, artificial intelligence solutions will continue to become more advanced. These advancements will ensure that CTV advertisements are optimized based on a user’s internet speed and the device they are browsing on.
AI will also improve the efficiency and effectiveness of programmatic CTV ad campaigns. AI technology will allow marketing firms to provide clients with performance-based pricing models, which will add to the appeal of CTV advertising.
Livestream Audiences Will Be Prime CTV Targets
Thus far, viewers who watch a lot of live content have been hesitant to ditch their cable company in lieu of CTV streaming services. However, the tides are beginning to shift for this class of viewers.
Major TV providers have started to offer subscription-based streaming services, allowing viewers to watch everything from old sitcoms to live sports.
As this trend continues, CTV advertisers will have a prime opportunity to capitalize on this new market segment. After all, advertisements displayed during live broadcasts often have significantly more engagement than marketing content shown during pre-recorded videos.
Strategus: Trailblazers in CTV Advertising
As you can see, big things are ahead for the CTV/OTT advertising industry. Connected TV marketing is poised to become a mainstream advertising medium in the very near future.
In light of this fact, it is essential that you make OTT/CTV a part of your overarching digital marketing strategy going forward. Otherwise, you might miss out on a great opportunity to connect with prospective clients, grow your brand, and improve profitability.
With that being said, launching your own programmatic OTT or CTV campaign can be quite a challenge. That is why you should partner with the pioneers of programmatic CTV advertising, Strategus.
Since 2015, we have been leading the way in the CTV advertising space. If your goal is to reach your true digital potential, there is no better company to have in your corner than Strategus. Contact us today and talk to one of our experts about your business needs!
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