In the rapidly evolving world of marketing, Connected TV (CTV) has emerged as a powerful new avenue for reaching desirable audiences on the household’s biggest screen. As the landscape continues to shift, it's crucial for marketers to stay informed about the latest trends and technologies shaping CTV advertising. Here's what you need to know to maximize your CTV ad strategy in today’s landscape.

CTV By the Numbers

The growth of CTV is nothing short of a seismic shift in the television industry. Here are 7 CTV market statistics that underscore its impact:

1. Widespread Adoption: 87% of U.S. households now own at least one CTV device, showcasing the technology's mainstream status.
2. Cord-Cutting Acceleration: By 2024, projections indicate that 46.6 million U.S. households will have cut the cord with traditional pay TV, up from 31.2 million in 2020.
3. Significant Ad Spend Growth: U.S. CTV ad spending is expected to reach $26.92 billion in 2023, a 27.2% increase from the previous year.
4. Increasing Viewership: In 2022, U.S. adults spent an average of 1 hour and 47 minutes per day watching CTV, a 9.3% increase from 2021.
5. Generational Preferences: 91% of millennials and 96% of Gen Z prefer streaming to traditional TV, indicating a strong future for CTV.
6. Fast Viewership: One of the most significant opportunities in CTV advertising lies in free, ad-supported content (FAST). 83% of CTV viewers in the U.S. watch ad-supported content, presenting a substantial audience for well-crafted, targeted advertising campaigns.

Local Adoption: Local CTV ad spending was projected to reach $3.4 billion in 2023, a 32% increase from 2022. This growth indicates the increasing recognition of CTV's value for targeted, local advertising campaigns.

Consumer Viewing Behavior Trends at Play

Just as it’s clear that CTV adoption is set to continue saturation across U.S. households, the shifts don’t stop there. For marketers and advertisers seeking to reach desirable audiences through the largest screen in the home, it’s important to look at changing consumer viewing behaviors as clues to the most resonant ad strategies. 

Multi-device viewing is the new normal. On average, U.S. households have 3.9 CTV devices, indicating that connected viewing is happening in households across multiple screens. This multi-device environment opens up new possibilities for creative, synchronized advertising strategies. At the same time, it’s increasingly common for individual viewers to watch programming with multiple devices in use or nearby. While television has traditionally been understood as a “lean back” media format that viewers consume passively, the presence of multiple devices means brands can encourage action and engagement through shoppable content, QR codes and other innovative strategies.

Another factor shaping viewer preferences today: the TikTokification of discovery. Social media apps such as TikTok and its For You page are training consumers to expect a highly relevant discovery mechanism seamlessly delivering relevant, entertaining content. As CTV adoption increases, it stands to reason that viewers will expect the same discovery experience they enjoy on popular social media platforms.

The New Frontier: Contextual Advertising in FAST

As the CTV landscape evolves, contextual advertising is emerging as a powerful tool for advertisers, thanks to new AI-powered solutions that analyze video content at the scene level – and at scale. 

For example, contextual advertising solutions such as Anoki’s ContextIQ leverage scene-level metadata to match ads with streaming content. This technology significantly enhances relevance and engagement, meeting the growing consumer expectation of personalized content.

Along with new innovations in contextual advertising, the rising popularity of FAST platforms is a phenomenon savvy marketers can't afford to ignore:

• 66% of TV content viewers are tuning into FAST platforms every month (Horowitz Research, 2024)
• In 2023, 55% of U.S. consumers used at least one FAST service, up from 40% in 2021 (Ampere Analysis)
• FAST viewership in the U.S. is projected to reach 216 million by 2025 (nScreenMedia)
• The global FAST market is expected to reach $32 billion by 2027 (Allied Market Research)
• U.S. FAST ad revenue is projected to reach $10.3 billion by 2025 (S&P Global Market Intelligence)

A key player in the "Video Everywhere" strategy, FAST offers unique advantages for CTV advertisers. Not only does FAST appeal across demographics – from younger viewers seeking free entertainment to older audiences valuing a familiar cable-like TV experience – FAST often offers more competitive pricing for advertisers than subscription-based alternatives. That means advertising on FAST offers brands access to audiences seeking high-quality, premium content – minus the higher costs of other streaming advertising.

Last but not least, that FAST supports a variety of ad formats, from traditional video ads to interactive experiences, allows brands creative flexibility and optionality in their campaigns.

Embracing the Future of CTV Advertising

From the power of contextual advertising to the rise of FAST platforms, the CTV landscape is rich with opportunities for innovative marketers. As you navigate this evolving landscape, staying informed about these trends will help build effective strategies to reach viewers in front of the largest screen in the house.
Ready to join us in shaping the future of CTV? Learn more about how Anoki helps brands increase the relevance and efficacy of their contextual advertising with Anoki’s ContextIQ. If you’re seeking to deepen your knowledge, our Contextual CTV Advertising Primer will walk you step-by-step through the advancements in AI upending traditional advertising for maximum viewer engagement, brand safety and adherence to privacy standards.

You will learn:

• Why today’s CTV landscape is poised for change
• How AI is making CTV targeting challenges a thing of the past
• Exactly what Anoki ContextIQ does to deliver relevance and personalization at scale

Download Anioki’s Contextual CTV Advertising Primer today to discover the new frontier of CTV advertising and stay ahead of the curve.