In the media industry, recent years have been marked by the eminent development of CTV, and the trend is to persist in the years to come. By 2023, 82% of households will have embraced the CTV platform. According to Fiksu DSP, a data-fueled adtech company, currently this industry is enabling brands to interact directly with loyal and prospective customers.
Companies bankroll ad campaigns on CTV to stay in touch with their faithful customers and reach out to new ones. As the number of CTV devices is growing, businesses become prone to investing in this environment. By 2021, brands are predicted to invest about $10 billion in ad spend.
"Many marketers and advertisers have been underestimating the potential of the CTV environment. However, the ongoing situation with the coronavirus pandemic has pushed them to reassess existing strategies and prioritize this channel to reinforce their brand's position in the market,"
Anna Kuzmenko, COO at
Thousands of companies have found renewed hope in the CTV industry amidst the economic upheaval caused by the lockdown. As brands one by one started placing their ads on this channel, competition for consumer attention skyrocketed. And so did the number of CTV viewers. Unlike commercials on linear television, ads on CTV advertising are displayed not only on smart TVs but also via streaming devices and game consoles.
"Even with the natural decrease in viewership after the easing of coronavirus lockdown restrictions, the influx of businesses will rise and assist the CTV industry to break new ground," Anna Kuzmenko remarks.
CTV Ad Spendings Growth by Industries
Fiksu's COO also adds that the optimistic forecast on the ad spend in the CTV industry is in line with the recent analysis conducted by the company. As a globally recognized cross-channel advertising platform focused on Connected TV, Fiksu has studied its own data on the ad spend in different categories. The rate comparison over the same periods from January to May in 2019 and 2020 shows a significant growth in various sectors. The largest increase is seen in telecommunications (550%), e-commerce (500%), money transfer (300%), and entertainment (350%).
Furthermore, the engagement of large audiences makes the industry even more lucrative as it ensures the commercial value of brands. 97% of respondents of an IAS Insider survey expect to invest in CTV in the year ahead while 27% of advertisers are currently spending up to $100,000 a year.
Last but not least, content is another crucial factor that ramps up interest in the industry. 44% of brands and 51% of agencies say that CTV is the platform with the most potential for new content ad innovations. Short-form studio-produced videos allow customizing content according to the audiences' interests and needs. Not only do companies get more space for creativity, but they also leverage visibility for the channel and build a stable connection with customers.