How advertisers are harnessing CTV’s opportunities in 2022

Victoria Jannetta, manager of client services, StackAdapt

Connected TV is becoming a widespread mode of media consumption, and digital marketers are taking notice.

In 2021, eMarketer reported that CTV advertising spend in the U.S. was up by 59.9% compared to 2020. By the end of 2022, CTV ad spend is expected to grow by 32.2%, reaching $19.1 billion. This significant year-over-year growth means competition is also on the rise in CTV. For marketers, championing the channel will help them win more client dollars and ensure that marketing teams are aligned with strategies that reflect CTV’s full potential.

StackAdapt conducted a survey in partnership with ad industry business intelligence firm Advertiser Perceptions to highlight the benefits and opportunities of CTV advertising. The survey of more than 200 agency and brand advertising decision-makers found that advertisers are increasingly willing to shift dollars from online and offline channels toward CTV advertising.

The survey also found a pain point: Some advertisers aren’t sure how they can approach the channel in a way that shows their clients the true potential of CTV. The key to overcoming this pain point is to understand CTV thoroughly so that marketers can seamlessly explain how the channel works and its unique benefits.

Given that CTV is an emerging channel, a couple of factors are necessary to keep top of mind when adding connected TV to an existing media mix.

Top-level insights: The CTV, OTT and linear TV mix

First, it’s key to understand that CTV and OTT are indeed related, but they aren’t the same. CTV is a subset of OTT, including apps and services that don’t require a subscription to traditional cable or pay-TV services. OTT is the method for delivering video content, and CTV is the device on which a viewer will see the content.

Another critical consideration is that CTV won’t overlap with linear TV buys. CTV enables more precise targeting and data than linear TV because it leverages the same programmatic targeting capabilities as other digital channels. These benefits are an excellent incentive for investing more in CTV, even if it means moving some dollars away from linear TV.

A final key consideration is that the high quality of CTV inventory outweighs the perceived risk of fragmentation. While fragmentation sounds scary, it generates competition. Competition can decrease prices because platforms have price as their best lever to secure ad dollars. Advertisers will benefit from the competition by creating a buyer’s market — the more inventory available, the more opportunity there is to reach viewers.

These insights into CTV can help clear up the common concerns raised by decision-makers in the Advertiser Perceptions survey. Being able to address these concerns is an important starting point for explaining CTV’s potential to clients. From there, diving into the unique benefits of this channel will not only strengthen the case to invest in CTV but become a champion of it.