The steady uptick in Connected TV (CTV) viewing has been significantly reshaping the marketing terrain ever since it took off. Indeed, the traction garnered by CTV following its inception has been nothing short of remarkable, with recent figures from Comscore’s State of Streaming report showcasing its meteoric surge over the past year.
Interestingly, this surge in CTV viewing has brought about sweeping alterations on the ad spending landscape – brought on by marketers looking to capture the attention of an ever-growing streaming audience. According to the Comscore report, a remarkable 21% uptick was observed in connected TV viewing hours in May 2023 in comparison to that of May 2022. The data also revealed that 73% of U.S. households are now streaming, a figure which was just 69% a year back.
Even more noteworthy is how this steady increase in CTV penetration is shaping advertising spends. As per recent data, connected TV ad spending has seen a steady climb, affecting a significant shift from the traditional ad investing on linear TV to alternatives like CTV and online video. For marketers, this transition is of prime importance as it indicates a rapidly evolving audience base that is opting for streaming and CTV viewing.
On closer examination of the patterns of content consumption, it was discovered that total viewing hours of CTV and online video have now surpassed that of linear TV – an unprecedented 131 billion hours were spent on CTV and 125 billion were dedicated to online video as of the latest report.
When it comes to the race for viewership among streaming platforms, six services in U.S. households outpace their competitors according to the Comscore report. Insights into hours viewed and reach for these platforms add to the complex understanding of streaming behaviors and trends in 2023.
Amid the various CTV services available to audiences, Netflix’s ad-supported streaming options surprisingly noted a 5% drop in share of CTV hours. Nevertheless, the overall CTV viewing hours continue to spread across multiple services, showing a diversifying user preference for content.
Further, traditional linear TV providers are acknowledging the shift and adapting to it, with several providing CTV options of their own. Three such services ranked in the top ten in hours viewed per household, according to the Comscore report.
The role of Smart TVs in this shift in content viewership cannot be overstated. They currently dominate the delivery of CTV streaming to consumers, with a substantial increase of 23% in households streaming content via Smart TVs between 2021 and 2023. This rising prevalence validates the potential of CTV viewing and its immense impact on associated areas like advertising and marketing.
In recent developments, Roku has announced its foray into the Smart TV market with the introduction of its branded HD and 4K smart TVs, further amplifying the shift towards connected TV viewing.
In conclusion, these increasing trends and statistics indicated by the Comscore’s State of Streaming report underscore the rising prominence of CTV viewing. It also highlights its inevitable impact on advertising spends and marketing strategies as content consumption shifts from traditional mediums to innovative platforms. This growing shift towards CTV underscores the necessity for marketers and advertisers to adapt to the changing media landscape and judiciously allocate their resources for optimal audience reach. As CTV constitutes an ever-growing share of media consumption, this trend is likely to continue to impact advertising norms and strategies in the foreseeable future.
Up until working with Casey, we had only had poor to mediocre experiences outsourcing work to agencies. Casey & the team at CJ&CO are the exception to the rule.
Communication was beyond great, his understanding of our vision was phenomenal, and instead of needing babysitting like the other agencies we worked with, he was not only completely dependable but also gave us sound suggestions on how to get better results, at the risk of us not needing him for the initial job we requested (absolute gem).
This has truly been the first time we worked with someone outside of our business that quickly grasped our vision, and that I could completely forget about and would still deliver above expectations.
I honestly can't wait to work in many more projects together!
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