On Our Minds: CTV Spend Increases Most Likely to Come from Linear TV Budgets
We recently reported about the ever-expanding ecosystem of CTV, both from a consumer and marketer perspective. With ⅔ of the U.S. population being CTV users according to eMarketer, it’s clear that this is a channel that marketers need to prioritize. For so long digital media has been thought as primarily lower funnel, conversion-based advertising. CTV allows us to feed a crucial piece of the funnel with awareness-driving campaigns but with far more sophisticated audience targeting than traditional linear TV.
While the options of what to stream on CTV are seemingly unlimited, unfortunately marketing budgets are not. eMarketer recently reported that for 40% of respondents, linear TV is the top channel that is subject to budget cuts in an effort to further fund CTV. Non-video digital media ads were the second highest channel, followed by other types of traditional ads. What is contributing to this ongoing shift from linear to CTV? In 2024, it’s no surprise that election season, as well as the Summer Olympics, will play a major factor, with CTV spends projected to grow by 18.8% this year alone. Ad-supported tiers of Amazon Prime, Disney+, and Netflix also continue to drive new subscribers to the CTV space.
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One of the most exciting aspects of the rise of CTV is the scalability and accessibility for advertisers. Whether you’re a Broadway blockbuster or the new kid on the block, advertisers can tap into premium CTV inventory across these top streaming platforms through programmatic platforms with a wide range of spending options. Programmatic platforms like the Trade Desk can even report on how incorporating CTV into your marketing plan affected how many impressions it took on average to convert someone from a prospect to a ticket buyer. We are thrilled to be able to see how investing further in awareness-driving media like CTV is ultimately contributing to ticket sales.
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