Connected TV
Connected TV (CTV) is transforming viewer behaviour!
Digital TV platforms such as DirecTV, Dish, SKY have lost millions of subscriber homes in recent years, which in turn has seen traditional linear TV networks lose mass audience share, viewership and ad. revenues as consumers embrace Connected TV platforms such as Netflix, Paramount+, Prime Video and You Tube who blend the reach of traditional TV with the precision of digital advertising, offering tailored, skippable and non-skippable ads for targeted audiences.
Over 50% of U.S. TV homes now routinely access and use Connected TV demonstrating a clear shift from traditional, linear TV usage and audience' viewing habits. This number is forecast to exceed 120M homes by 2027 or put another way... 96% of all U.S. TV Homes!
The rapid growth of Connected TV has already been embraced by major consumer brands and "pure play" retailers who are actively switching their traditional TV marketing budgets and advertising spends to Connected TV. U.S. CTV advertising spends alone were more than $25 billion last year... a figure that continue to grow!
Global video advertising expenditure is estimated to be $242 billion by 2028 marking a 36.9% increase since 2023. This sustained growth reflects the increasing importance brands and advertisers are placing on digital video platforms. In the U.S., the average ad-spend per internet user responding to digital video ads is projected to hit $339.73 by 2028 - an increase of 37.8%. This increase is attributed to the expansion of Connected TV and continued investment into other digital video platforms.
Connected TV can offer the same opportunity for TV Home Shopping Networks and DRTV advertisers to adopt this new medium and by doing so, reach, engage and transact with new audiences both domesti- cally and worldwide by firstly transitioning their existing broadcast model by launching a FAST channel before fully migrating their broadcast services to Connected TV.
Free Ad-Supported Streaming Television (FAST) offers established digital and linear TV channels the opportunity to reach CTV audiences and expand their overall audience reach, by seamlessly inte- grating existing 24/7 channels for minimal investment on platforms like Pluto TV, Roku, and Samsung TV Plus. Alternatively, programmers and advertisers could consider a more prudent approach to bridging the gap by first partnering with leading CTV providers such as Samsung TV and LG Channels to produce and trial innovative, cost-effective, targeted advertising campaigns.