The Next Frontier: How CTV Advertising Will Change the Game for All Advertisers

As audiences continue to migrate their television and movie watching to streaming platforms, all advertisers are faced with an inflection point where they must adapt to the growing world of streaming. All advertisers, including smaller direct-to-consumer advertisers, need to reach their target audiences; some of which have been historically difficult to find on linear TV.

Linear TV has long been the place where advertisers find vast and rapid audience reach, driven by substantial viewership across the US. But as consumers evaluate their entertainment offerings, advertisers and their agencies have to transition away from solely relying on linear TV advertising. Tentpole events like the Super Bowl and the holiday season will continue to reign supreme, pulling in premium advertisers. Nevertheless, when considering ongoing marketing initiatives, advertisers must adapt their mindset and fully embrace the opportunities presented by CTV advertising for almost any brand.

The CTV turning point

CTV advertising isn’t new to the industry, nor has it been slow to achieve scale. Advertisers have long known about the potential of CTV advertising, but changes in an ecosystem like this don’t happen overnight. The early days of streaming were centered around premium subscription video on demand (SVOD) from the likes of HBO and Netflix – and have since evolved. Streaming has now reached its maturity with a wide variety of ad-supported channels and services, opening the floodgates to advertisers. The increase in quality content across streaming – and sheer popularity of it – has shed light on why CTV is the next frontier for all types of advertisers.

No longer a new model on the market, CTV advertising has been tested and become a foundational product for many direct-to-consumer brands. The ability of CTV to provide precise audience targeting has improved the efficiency and effectiveness of any advertiser’s marketing investment, showing that this market is for the taking from just about any brand.

The great advertising equalizer

As CTV has expanded in the last decade or so, the advertising industry has evolved to a stage where brands possess a clear understanding of the specific audience they need to reach with their marketing. Through CTV campaigns, brands can clearly target their key audiences, ensuring that each impression is delivered to the right individual or household. Compared to linear television where the goal is to reach as many people as possible – with less precision on audience targeting – CTV ensures that advertisements are reaching the right people, at the right time.

Take the case of a direct-to-consumer education services company that traditionally used linear TV for its marketing. The case study below demonstrates that utilizing CTV’s audience segmentation capabilities enabled the company to reach 42% more households compared to the linear TV campaign alone. This type of incremental reach gain unlocks a world of potential for advertisers and agencies, especially as audiences continue to fragment.