It’s primetime! Why brands are fully embracing the Connected TV advertising market

July 7, 2022 | 4 minute read
Amy Gesenhues
Senior Content Marketing Strategist
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The CTV advertising landscape is the next great frontier for brands.  The ongoing uptick in ad spend shows brands are taking notice of the massive opportunities happening across streaming platforms, smart TVs, and other connected TV and OTT devices, but there is still room for growth. Earlier this year, Statistica released research showing that CTV ad revenues accounted for only 4.7% of total advertising spend in the US in 2021.

Meanwhile, consumer adoption rates for CTV and streaming services continue to climb. Gartner claims, “US viewers age 18 to 43 spend an average of 63% of their overall TV viewing time on streaming versus cable, broadcast, or satellite.” eMarketer’s research revealed US adults spend, on average, 80 minutes a day watching CTV content.

“About two-thirds of the US population are monthly CTV users. Young people are more likely than older people to use CTV,” writes eMarketer in its report on CTV advertising. “Four in 10 US senior citizens are CTV users—whereas CTV usage is about double that, more than 80%, among those ages 25 to 54.” 

Find out all you need to know about CTV, how it differs from OTT and Linear TV, its challenges, and benefits.

The CTV advertising market: Opportunities and risks

With audiences growing at an exponential rate, it’s clear that CTV advertising opportunities are massive. Not only does CTV offer an engaged audience that is able to curate the exact programming it wants to watch, the right CTV advertising tools allow advertisers to connect with consumers in a way traditional television falls short.

The CTV advertising ecosystem is unique in that it enables brands to precisely target niche audiences within a premium TV environment while measuring critical KPIs and gaining deep insights into campaign performance. Another bonus: Because it is still an emerging ad space, the CTV marketplace is not yet saturated, giving marketers greater potential to gain a more competitive edge.

In fact, for advertisers ready to introduce a new channel into their marketing mix, there is no time like the present. Last year, eMarketer reported that CTV ad revenue was up nearly 60%—with advertisers investing a total of $14.4 billion on CTV ads. In the next two years, eMarketer predicts total CTV ad revenue will reach nearly $30 billion, more than double 2021’s ad spend.

When eMarketer published their first-ever CTV advertising forecast in 2019, CTV ad revenues were about one-tenth of linear TV ad revenues. By 2025, CTV ad revenues will be more than half that of linear TV’s.

But before advertisers can take full advantage of the CTV market, it’s crucial they understand the stakes. CTV advertising comes with its own challenges: being able to verify campaigns, measure results, and avoid ad fraud schemes that are specific to CTV/OTT environments. It is also critical that advertisers enter the marketplace with a clear understanding of the available platforms and channels, as well as its audience.

“The streaming services media marketplace is still very fragmented, immature, and challenged by the popularity of ad-free services,” writes Eric Schmitt, senior director analyst in the Gartner Marketing practice. “Marketing leaders must learn to navigate this fluid, high growth, medium in order to deliver TV ads efficiently and effectively.”

Learn how to measure consumer attention across CTV and all media with his step-by-step guide.

Why CTV advertisers need a trusted ad measurement partner

According to eMarketer, for every $10 spent on CTV ads this year, $7 will be spent on programmatic campaigns. That’s more than $10 billion in CTV ad revenue invested in programmatic advertising. Just like with any other programmatic ad campaign, advertisers need to ensure their CTV ads are valid, viewable, and verifiable—they need a partner that provides effective ad measurement solutions to invest in CTV advertising with confidence.

Oracle Moat has long led the charge in providing ad measurement solutions that enable advertisers to optimize campaigns and drive results. Not only has Oracle Moat been recognized by leading industry associations—with accreditations from the Brand Safety Institute and Media Ratings Council—the Oracle Moat IVT team was the first to identify KissFraud, a context spoofing ad fraud scheme that involved multiple malicious pirated video sites.

To help brands be strategic with their CTV ad investments, we’ve published a comprehensive guide that covers everything you need to know about CTV advertising and measurement. Get a succinct understanding of the CTV market, insights on securing your investment, verifying your impact, and safeguarding your brand message with our in-depth guide.

Read "Buy with confidence on Connected TV: A marketer's guide to CTA advertising and measurement."

Learn more about CTA advertising and mesurement:


Amy Gesenhues

Senior Content Marketing Strategist

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