More and more advertisers want in on the connected television (CTV) and streaming opportunity—and for good reason. CTV advertising refers to video ads that are delivered via a streaming service, and it has easily become the fastest-growing ad channel in the U.S. It is projected to hit a staggering $30.1 billion in spend this year, reflecting 22% YoY growth.

Advertisers aren’t the only ones shifting their focus to CTV—data from eMarketer reveals that in 2023, the number of U.S. households opting for streaming services surpassed those with cable subscriptions for the first time. 

As dollars flow out of traditional TV and into streaming, CTV’s reach is only set to grow, and marketers stand on the brink of unlocking this channel’s full potential. Let’s dive into the chief reasons why CTV is winning over the hearts and minds of advertisers and the three ways you can capitalize on its full value. 

CTV: WHERE EVERYONE HAS A SEAT AT THE TABLE

With CTV viewership on the rise, ad space expands alongside it. In fact, connected TV offerings are growing so rapidly that eMarketer predicts CTV advertisements will snag 1 in 10 media dollars by 2024. We saw giants like Netflix and Disney+ warming up to ads last year, followed by Amazon Prime, which joined the ranks of ad-supported content in January. 

Now, there’s a seat at the table for everyone in CTV, with every major provider offering some form of ad-supported streaming services. This grants advertisers more options for premium, brand-safe inventory for their ads to thrive.

NO COOKIES, NO PROBLEM

CTV and streaming placements provide marketers with the opportunity to bring the addressability of the digital landscape to television. The digital nature of CTV means ads can be more accurately targeted and measured than their linear TV counterparts. Connected television operates in a cookieless environment by default, relying on device and app-specific identifiers to target desired audiences. This means that CTV placements will not be affected by the fire drills in the current ad tech industry surrounding third-party cookie deprecation.

With this addressability comes better targeting as advertisers can fine-tune their focus on specific viewer interests and behaviors, a capability that traditional TV can’t match. This precision takes the guesswork out of showing your content to the consumers you want to reach, which can not only improve campaign performance, but also boost the ability to measure success through metrics like video completion rates. Plus, a multitude of CTV platforms now offer interactive ads that allow viewers to click to websites or scan QR codes to download apps, providing even more lower-funnel data points to analyze. 

THE NEW RULES OF ENGAGEMENT

So you’ve doubled down on your CTV strategy—excellent! But unlike traditional advertising channels, navigating the CTV landscape necessitates a fresh playbook. Let’s explore three essential rules of engagement for thriving in the realm of CTV advertising.

1. UNLOCK YOUR FIRST-PARTY DATA  

If CTV placements do not rely on cookies, where do advertisers turn to accurately and efficiently target consumers on the channel? The answer lies in the utilization of your quality first-party data. 

By unlocking your first-party data, you can leverage cookieless audience identifiers, achieving a deeper understanding of your consumers and, therefore, enabling more relevant advertising. And, thanks to the growing use of data clean-rooms, first-party data can be shared and matched without compromising consumer privacy. 

2. FOCUS ON PREMIUM INVENTORY

Like most things in life, not all streaming platforms and programmatic suppliers are created equal. They offer varying levels of safeguards regarding accurate digital identifiers, impactful audiences, and brand-safe placements. Advertisers should focus on smart buying practices, purchasing inventory through premium channels or utilizing a demand side platform (DSP) that partners with premium CTV content owners to achieve the highest return on ad spend (full disclosure: Viant provides this service).

3. EMBRACE SOUND MEASUREMENT SOLUTIONS 

Buying CTV placements can’t be a one-size-fits-all. Choices between direct buys from streaming platforms and programmatic approaches can lead to fragmentation in reporting, as there is no singular common currency for measurement on CTV. The cookieless identifiers CTV placements use for targeting can be inaccurate or muddled, especially considering that households (or even individuals themselves) may have more than one online profile or email address associated with them. 

The challenges of fragmented measurement and mismatched identifiers can impact how advertisers monitor reach and frequency on CTV. This issue might remind you of occasions where the same advertisement appeared during every commercial break in a streaming session: That’s fragmented tracking and measurement at play. 

Yet these hurdles shouldn’t discourage CTV advertising; rather, they signal a need for adaptation and innovation in the industry. Advertisers must recognize that the complexity of CTV measurement demands equally sophisticated solutions, such as leveraging deterministic data and finding the right strategic partners to manage reach and frequency. This approach will drive more reliable and consistent measurement, allowing advertisers to leverage the full potential of CTV advertising.

Embracing CTV is not just a trend, but a transformative shift in how brands connect with audiences effectively. Advertisers who work to adapt to this dynamic landscape can find themselves at the forefront of a new era of advertising, engaging with their consumers in a highly performant, impactful way.