Volume 21 No. 2: Is 2024 the year of CTV?
We asked marketers which channels they planned to increase spending on in 2024. The top answer was Connected TV. The IAB found the same result when surveying their members. But how are marketers making sure CTV is worth the investment?
CTV ad spend passed $25 billion.
In 2024, Linear TV will dominate TV ad spend by growing to $62 billion. But Connected TV is catching up. Reaching $25 billion last year was a huge milestone. Just five years earlier, CTV spend was a mere $2.8 billion.
Shifting into streaming is exciting, but not streamlined.
TV has changed more in the last decade than in the previous three decades combined. And while streaming and CTV provide new opportunities for advertisers, they’ve also created challenges. We’re talking about inconsistent measurement, expensive targeting that’s not always accurate, and high CPMs.
High prices are a result of limited inventory paired against high demand, and this should be a top concern for performance marketers testing CTV. Unfortunately, the solution isn't straightforward—it involves balancing high costs against the potential for greater ROI and setting up media buying and targeting strategies that reduce costs rather than increase them.
Still, CTV is the future of TV. Advertisers should invest resources here to learn how to make the most of the channel. But they should approach it with realistic expectations and a strategic plan.
“TV and CTV Ad Spending Forecasts”
This report from eMarketer covers the shift from traditional linear TV to streaming and CTV over the next few years. One major theme? TV’s not dying, it’s evolving. Read the report.
Marketing into the future.
“Marketing’s job is never done. It’s about perpetual motion. We must continue to innovate every day.”
—Beth Comstock, former vice chair at General Electric