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    Research Digest

    CTV Viewership Continues to Grow Yet Advertiser Spending Still Lags Behind

    Abstract

    • Connected TV only accounts for 18% of ad video dollars, despite CTV accounting for 36% of video time spent.
    • 70% of streamers are not accessible by linear; advertisers are missing their target audience when they don’t adjust to shifting viewership.
    • Advertisers who do utilize CTV recognize the premium and brand-safe nature of the space.

    Advertisers are being left behind by their linear-only strategy

    As more people cut the cord, advertisers are struggling to meet their marketing goals with linear TV. However, the rapid growth of streaming viewership is still exceeding the advertising spend, even after two years of accelerated growth due to the pandemic. Based on a SMI survey, advertisers’ CTV spend will only account for 18% of ad video dollars in 2022, despite CTV being 36% of total video time spent. 

    It seems many advertisers are slow to adopt the newest TV technology, which means that they are missing out on reaching a key audience. Based on a study conducted in 2021, 70% of streamers are not reachable on linear TV. This number will only continue to grow as more people cut the cord and a new generation of “cord-nevers” (those who have never had cable) grows up. Advertisers would be remiss not to follow their potential customers to where they are watching. 

    Advertisers on Streaming See the Benefits

    Conclusion

    Despite the growth of viewership on streaming, advertisers have been slow to follow. Connected TV offers premium content in a brand-safe environment, as well as the ability to accurately target specific audiences. Advertisers who have yet to make the switch should look to do so to make sure they are making the most of their video ad budget.

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