CTV bridges traditional TV and streaming gaps

The growing prevalence of connected TV (CTV), coupled with an increasingly fragmented streaming space, creates an advertising landscape reminiscent of the pre-streaming era. CTV combines the reach of traditional TV advertising with the precision of social media campaigns, presenting unique opportunities and challenges for advertisers. “The fragmentation of the streaming ecosystem has revolutionized viewing habits,” remarks Jon Hewson, managing director at Audience Store.

The distinction between traditional linear TV and connected, on-demand TV is blurring as audiences consume content across multiple platforms without differentiating between them. Established platforms like Netflix and Disney Plus now face fierce competition from numerous niche and freemium services. The oversaturated market has led to a decline in streaming’s momentum.

Netflix UK, for example, saw its subscriber growth drop from 20% annually to just 4% in 2022. “SVOD fatigue is now real,” says a former VP of CTV strategy & marketing at Publica by IAS, highlighting a shift towards free or low-cost ad-supported streaming services (AVOD & FAST). These platforms are gaining popularity, with viewers spending an average of 1 hour and 40 minutes per evening on them.

Paid services are also introducing ad-supported subscription tiers and raising prices. “The lines between traditional TV and CTV are blurring fast,” Gubbins notes.

Bridging traditional and connected TV

CTV advertising is becoming integral to modern TV, combining live TV with on-demand streaming. CTV covers any internet-connected television capable of streaming video content, including smart TVs, set-top boxes, and gaming consoles. CTV ads—like traditional TV ads but smarter and data-driven—are rapidly growing.

“CTV ads combine traditional TV’s broad reach with the precision of data-driven digital ads,” Gubbins explains. In the UK, more than three-quarters of households now own a smart TV, making CTV increasingly ubiquitous. For advertisers, the challenge lies in navigating the fragmented CTV ecosystem while leveraging data and programmatic technology like DSPs and SSPs for effective ad targeting.

Audience measurement and attribution are still evolving, but advertisers are already seeing significant value from CTV advertising. “Focus on the audience, not the platform,” advises Hewson. Wallace adds that CTV offers a more immersive experience compared to other digital channels like social media, presenting a unique opportunity for advertisers to capture higher engagement levels.

So, has the tech industry reinvented the crab again? The resurgence of old models with new technology suggests a synthesis of past and present, potentially leading to a more stable era for entertainment and advertising.

Also published in: DMN