1、What You Need to Know About a Shifting LandscapeJUN 2023Ross BenesConnected TV ExplainerConnected TV(CTV)is one of the hottest ad markets.Its annual growth rate will again outpace total digital ad spendings growth this year,per our forecast.This eMarketer report provides data and analysis on what is

2、 driving CTVs rapid growth and how advertisers can maximize their potential in this space.Presented byCopyright 2023,Insider Intelligence Inc.All rights reserved.Page 2Presented byConnected TV Explainer:What You Need to Know About a Shifting LandscapeConnected TV(CTV)is one of the hottest ad markets

3、.Its annual growth rate will again outpace total digital ad spendings growth this year,per our forecast.KEY QUESTIONS1 What is CTV?2 How big is the market and whats driving growth?3 How can you buy CTV advertising?4 Which companies are gaining market share?billions,%change,and%of digital ad spending

4、US Connected TV(CTV)Ad Spending,2021-2027$17.30$20.69$25.09$29.29$33.06$36.86$40.902022420252026202758.2%19.6%21.2%16.8%12.9%11.5%11.0%7.8%8.5%9.5%10.0%10.2%10.3%10.4%CTV ad spending%change%of total digital ad spendingNote:digital advertising that appears on CTV devices;includes display a

5、ds that appear onhome screens and in-stream video ads that appear on CTVs from platforms like Hulu,Roku,and YouTube;excludes network-sold inventory from traditional linear TV and addressable TVadvertisingSource:eMarketer,March 2023281241eMarketer|InsiderIKEY STAT:CTV will account for about one-tenth

6、 of US total digital ad spending in 2023.Contents2 Connected TV Explainer:What You Need to Know About a Shifting Landscape3 What is CTV?3 How big is the CTV advertising market?4 Who are the key players in CTV?5 Whats driving CTVs advertising growth?8 Where are CTV ad dollars coming from?8 How are CT

7、V ads bought and sold?Copyright 2023,Insider Intelligence Inc.All rights reserved.Page 3Presented byWhat is CTV?We define CTV advertising as digitally sold ads that appear on TV screens.This includes ads shown on smart TVs that feature their own internal internet capabilities as well as ads that are

8、 transmitted through external devices,such as Amazon Fire sticks,Blu-ray players,and gaming consoles.What is included in our definition of CTV?A few CTV advertising categories stick out.These include:Subscription streaming services:Paid services likeNetflix,Hulu,and Prime Video remain popular.Free s

9、treaming services:Free streamers like Tubi,Pluto TV,The Roku Channel,and Crackle are gainingviewers.(We include YouTube in our CTV definition.YouTube has subscription offerings,but viewers spendmore time on its free service.)Device-makers:Roku,Fire TV,Samsung,Vizio,and LGhave built up ad businesses.

10、Traditional TV offshoots:Virtual cable services(vMVPDs),like YouTube TV,Sling TV,and Hulu with Live TV,sell streaming inventory.TV Everywherestreaming apps for traditional TV networks that requireauthenticated loginsis another outlet where digitallyserved ads can appear against live TV.What isnt con

11、sidered CTV?CTV doesnt include ads delivered to computers,phones,tablets,or other non-TV devices.Nor doesit include network-or broadcaster-sold inventory fromtraditional linear TV or addressable TV advertising.Addollars from our CTV estimates are exclusive from addollars in our linear TV estimates.W

12、e also dont includethe majority of social video ad spending because itlargely comes from out-stream mobile ads.For clarity,we limited our analysis to CTV,which is device-specific.More than three-fourths of time spent streaming occurred on TV sets in Q2 2022,according to Conviva.How big is the CTV ad

13、vertising market?US advertisers are on track to spend more than$25 billion on CTV this year,per our forecast.We expect CTV ad spend to increase by about$5 billion compared with its 2022 levels.In 2022,CTV ad spend increased by about$3 billion compared with the previous year.The larger bump in 2023 i

14、s partly because this is the first full year that Netflix and Disney+will feature advertising.CTV and linear TV advertising are trending inopposite directions.By 2025,the amount of moneyspent on CTV ads will be more than half the amountspent on linear TV ads.When we forecast CTV adspend for the firs

15、t time in 2019,it was only one-tenth ofwhat was spent on linear TV.CTVs ad spending growth will be greater than TVsdecline.Thats why,despite the shrinking pool of linearTV ad dollars,the combined amount spent on CTV andTV will grow from$86.4 billion in 2023 to almost$100 billion by the end of our fo

16、recast period in 2027.CTV will continue to eat into linear ad dollars.billionsUS TV and Connected TV(CTV)Ad Spending,2220232024202520262027$65.66$17.30$66.64$20.69$61.31$25.09$61.74$29.29$58.47$33.06$58.58$36.86$56.83$40.90TVCTVNote:TV includes broadcast TV(network,syndication,and spo

17、t)and cable TV;excludesdigital;CTV includes digital advertising that appears on CTV devices;includes display ads that appear on home screens and in-stream video ads that appear on CTVs from platforms like Hulu,Roku,and YouTube;excludes network-sold inventory from traditional linear TV and addressabl

18、e TV advertisingSource:eMarketer,March 2023281078eMarketer|InsiderI$82.96$87.33$86.40$91.03$91.53$95.44$97.73Copyright 2023,Insider Intelligence Inc.All rights reserved.Page 4Presented byWho are the key players in CTV?As CTV advertising expanded,so did the number of companies with sizable CTV ad bus

19、inesses.YouTube:On a gross basis,YouTube is the largestrecipient of CTV ad dollars,set to take in nearly$6 billion in US CTV ad spending in 2023.The net amount,which factors in the revenues YouTube will share with creators and publisher partners,is about half that amount.oYouTube is one of the most

20、popular streamingservices on the planet.But it has struggled tomaintain momentum,posting three consecutivequarterly ad revenue declines.Disney:To unify its streaming ad businesses,The WaltDisney Co.uses the same homegrown ad server forHulu and Disney+.It also gave Disney+the ad targetingcapabilities

21、 that Hulu has.It plans to combine Disney+and Hulu content into a single app later this year.And there have been reports that Disney is workingon making its ESPN linear channels available as astandalone streaming service.Warner Bros.Discovery:Because HBO Max was oneof the most popular subscription s

22、treaming services,and its reach should only increase with Discoverysofferings,Max has the potential to become a large adbusiness.The biggest obstacle to Maxs success willbe the stability of its debt-ridden,content-slashingparent company,which has cut its salesforce andirked lawmakers.Netflix:Adverti

23、sing has been slow going for Netflix:Itlikely wont crack$1 billion in US ad revenues until nextyear.However,Netflix still has the potential to becomeone of the worlds largest video ad businesses.Duringits virtual upfront in May,the company reported that ithad about 5 million global subscribers on it

24、s ad plan.Amazon:Although Prime Video is ad-free,Amazonhas been making an advertising push.Its expandingtargeting options for Thursday Night Football games,has added more free ad-supported streaming channelsto Fire TV,and has moved many original programs to itsfree ad-driven service,Freevee.oWe dont

25、 forecast CTV ad revenues for Amazon,but we believe its one of the largest receivers ofstreaming ad dollars.In recent years,there hasbeen a push to make streaming ads shoppable.Should that happen more widely,Amazonsstreaming business would benefit from its massiveretail presence.Roku:Roku has become

26、 the most widely usedstreaming interface in the US,with 122.3 million viewersin 2023.Its streaming service,The Roku Channel,hasdeveloped more originals after years of exclusivelyrelying on licensed content.Roku has felt pressure likemany others in the streaming space,with depressedholiday sales and

27、layoffs.But people continue to spendmore time streaming through Roku,which is generatingad inventory.Copyright 2023,Insider Intelligence Inc.All rights reserved.Page 5Presented byWhats driving CTVs advertising growth?CTV ad spending is expanding because more services have adopted ads,streaming servi

28、ces have increased their ad loads,and people continue to spend more time streaming.Not too long ago,HBO,Netflix,and Disney+featured no advertising.Now they all have ads.And some of the most popular ad-supported streamers,like Hulu,have increased their ad loads in recent years.People are spending mor

29、e time streaming.Weexpect time spent with CTV among US adults to doublefrom about 1 hour per day in 2019 to just over 2 hoursper day in 2024.CTV usage also exceeds time spenton desktops and laptops.CTV will account for morethan one-fourth of total time spent with digital mediathis year.Although time

30、 spent on CTV is catching up to linearTV,CTV isnt replacing ad inventory as quickly.CTV accounted for a 15%to 23%share of total CTV andTV ad inventory between 2021 and 2023,according toBrian Wieser of Madison and Wall.But CTVs share oftotal viewing was higher,between 34%to 40%.oThe gap between these

31、 shares underscores thelarge amount of streaming activity that happenswithout ads.Streaming ad loads also tend to belighter than linear loads.Viewers will spend less time watching ads on TV screens than they used to.Put another way,the shareof total CTV and TV viewing that is ad-free increasedfrom 1

32、7%in 2021 to 22%in 2023,per Wieser.As totalTV ad exposures decline,marketers will have to becomemore strategic about how they grow their reach.Prayand spray methods will be more difficult to execute.Atargeted approach,based on crisply defined audiencetargets,will become more favorable.Connected TV(C

33、TV)is quickly becoming a widespread mode of media consumption.An audience of 230.1 million US viewers currently use CTVs,and its projected that adoption of the channel will continue to grow,according to eMarketer data.A CTV is any TV set that can connect to viewers subscription streaming services.Vi

34、ewers can also leverage a CTV device to watch content delivered to them via OTT and CTV channels.Those devices include Roku,PlayStation,Xbox,Amazon Fire Stick,Google Chromecast,Apple TV,and more.Platforms like Netflix,Hulu,and Amazon Prime are all delivery methods for streaming content,but its impor

35、tant to note that although these streamers are an integral part of the CTV process,they arent CTVs themselves.CTV strictly refers to the device used as a conduit for streaming content.CTV is an emerging channel,and while some advertisers are hesitant to add it to their marketing mix,it should still

36、be viewed as an opportunity.CTV is rich with potential and benefits.The flexibility and consumer control that comes with CTV is accelerating the adoption of this channel.Content made specifically for CTV,like interactive formats and native experiences,provides advertisers with opportunities to impre

37、ss and engage with their audience.CTV ads enable advertisers to reach cord-cutting households,which are a growing market.Cord-cutting refers to the pattern of viewers canceling their subscriptions to cable or satellite TV services or dropping paid TV channels.According to eMarketer,more than 47.9%of

38、 US households will have cut the cord by 2027.The cost of entry for CTV is much lower than the cost for linear TV ads.With CTV,advertisers have access to the open internet,enhanced targeting,and inventory selection.They can proactively learn who is viewing and interacting with their ads,and then opt

39、imize and retarget accordingly.Unlike with linear,CTV can retarget users based on impressions,or retarget users who have engaged with other campaigns.Perhaps one of the greatest benefits of CTV advertising is that it comes with something all advertisers want:more data.CTV enables more precise target

40、ing and data than linear,because it leverages the same programmatic targeting capabilities as other digital channels.With the advent of streaming services and CTV,advertisers can gain a much deeper understanding of what motivates their customers.With enhanced targeting options,inventory selection,an

41、d real-time reporting,its possible to leverage campaign and targeting setups similar to other programmatic media buys like display,native,and video advertising.This means that,like with any programmatic campaign,advertisers can assess progress against goals and metrics while a campaign is live.Adver

42、tisers should leverage CTV as part of their digital strategy to provide the awareness component of a full-funnel and cross-channel campaign.Its a great way to bring awareness to an attentive audience,who can then later be targeted across other devices.To get started with CTV,advertisers and agencies

43、 should leverage their existing teams,educate themselves and their teams with extensive knowledge,and shift their budgets strategically.By diving into CTV now,advertisers will be prepared for CTVs inevitable growth.The growing relevance of CTV is changing the way advertisers think about commercial b

44、reaks.For viewers that pay for an ad-free experience,its no longer necessary to wait through 30-second commercial breaks.They can watch whatever program they want,when they want.However,for viewers subscribed to an ad-supported platform,like Netflix or Hulu,the traditional“commercial break”has evolv

45、ed,and its time for advertisers to take notice.Why marketers should harness the benefits of CTV advertisingThis sponsored article was contributed by StackAdapt.Nikunj AroraSenior Director,Partnerships,APAC,StackAdaptCopyright 2023,Insider Intelligence Inc.All rights reserved.Page 6Presented by Stack

46、Adapt Supercharge Your CTV Campaigns Give viewers the full-screen branding experience of TV advertising with all the benefits of Copyright 2023,Insider Intelligence Inc.All rights reserved.Page 8Presented byWhere are CTV ad dollars coming from?When an advertiser decides to send dollars to CTV,anothe

47、r medium misses out.Linear TV and mobile video budgets are the two most common places advertisers pull their CTV dollars from,according to a May 2023 Interactive Advertising Bureau(IAB)survey of advertisers.This aligns with what Netflixs vice president of global ad sales,Peter Naylor,told Ad Age pri

48、or to the upfronts:“I think we will be in the share-stealing business,and Im not sure exactly where theyll take it from other than I think the immediate adjacency is conventional TV or vertical video.”Nearly half of marketers reported that their linear TV budgets will be affected by the increased al

49、location to CTV.About one-fifth reported that digital display and nonstreaming digital video budgets will be affected by CTV allocation,according to a March 2023 Advertiser Perceptions and Premion survey.%of respondentsSources for Funding the Increase in Connected TV(CTV)Ad Spending According to USA

50、gency/Marketing Professionals,March 2023Reallocation from linear TV(broadcast/cable)37%Reallocation from other types of digital/mobile video36%Reallocation from audience-based linear TV32%Reallocation from social media platforms31%Reallocation from other types of traditional ads31%Overall expansion

51、of advertising budgets31%Reallocation from other nonvideo digital ads30%Note:n=144 who are increasing CTV/OTT spending in 2023Source:Interactive Advertising Bureau(IAB),2022 Video Ad Spend&2023 Outlook inconjunction with Standard Media Index(SMI)and Advertiser Perceptions,May 3,2023281714eMarketer|I

52、nsiderIHow are CTV ads bought and sold?CTV ads can be bought in a variety of ways.There are tradeoffs to purchasing from each inventory source.Streaming service or TV network:By working directly with a streaming service or TV network,advertisers can get more clarity on which apps and shows their ads

53、 will appear in.They can also obtain access to top-tier exclusive inventory.But placing ad buys across dozens of individual services takes more effort to scale.Programmatic platforms:Advertisers may find cheaper prices by securing inventory through programmatic platforms.And going through a programm

54、atic platform could extend their reach since they can bid across numerous apps inventory.CTV device-makers:Buying inventory through a smart TV-maker or CTV operating system allows advertisers to reach a wide swath of users and place ads within many apps.But going through third partiessuch as program

55、matic platforms or device-makersgives advertisers less control over where ads can be placed.When going this route,advertisers might not get to pick which service or show their ads will appear in.Copyright 2023,Insider Intelligence Inc.All rights reserved.Page 9Presented byCTV ad dollars travel down

56、a long and winding road.The amount of money that ad tech vendors take from a given programmatic CTV campaign varies widely.“Ad tech taxes”are dependent on many variables,including how much data and targeting is involved,how many vendors the advertiser decides to use,whether these vendors operate on

57、a software as a service(SaaS)model,and the structure of the publishers ad tech setup.How vendors get paid can be complicated,but in general supply-side platform(SSP)fees come from the publisher and demand-side platform(DSP)fees come from the ad buyer.Vendors provide services that advertisers seek,so

58、 labeling their contribution as“taxes”seems unfair to ad tech advocates.But critics could argue that the tech fees vendors absorb are ad dollars that dont wind up in the hands of the company producing the content viewers watch.If advertisers feel theyre getting a good deal through their DSP and othe

59、r vendors,they might not mind having fewer of their dollars going to the people who actually produce and distribute content.o The advertiser is more incentivized to get a good deal for its brand than to consider ethical conundrums.After all,it was advertisers that handsomely funded Facebook,Twitter,

60、and Google,despite these companies heavy reliance on other peoples content,not to mention the societal problems created in the wake of their rise.Copyright 2023,Insider Intelligence Inc.All rights reserved.Page 10Presented by If advertisers buy CTV inventory through device-makers like Roku and Fire

61、TV,then generally about 30%of their ad dollars will be kept by the device companies.But that amount varies depending on how much a publisher relies on the device-maker to sell its inventory and how much leverage the publisher wields based on its popularity with users.If the publisher enables the dev

62、ice-maker to act as a salesforce on its behalf,the device-maker will get a higher split.o Revenue shares and other issues have led to carriage disputes between streaming services like HBO Max and Peacock and devices like Roku,Samsung,and Fire TV.When Disney+introduced advertising in December 2022,it

63、s ad tier wasnt initially available on Roku.Conflicts between streaming services and device-makers often result from disagreements over what share of ad dollars each company gets to keep.These ways of buying CTV inventory arent mutually exclusive.A single advertiser could buy CTV inventory using all

64、 these methods.When choosing where to buy streaming inventory,advertisers should consider if they prioritize precision over scale.Depending on the brand and campaign,deciding where they lie on this continuum could go a long way in determining where they should buy inventory.Page 11Copyright 2023,Ins

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