5 Trends to Watch for in CTV Advertising for 2024

By Larisa Bedgood

As the world of advertising continues to evolve, Connected TV (CTV) has emerged as a powerful platform for reaching audiences. With its ability to deliver targeted, immersive content to viewers on their connected devices, CTV advertising has gained significant momentum.

Here are 5 trends to watch for in CTV advertising in 2024:

Continued Growth in CTV Viewership

In 2022, according to Leichtman Research Group (LRG), 87 percent of U.S. TV households had at least one internet-connected TV device, including connected smart TVs, stand-alone streaming devices (like Roku, Amazon Fire TV sticks or boxes, Chromecast, or Apple TV), connected video game systems, and/or connected Blu-ray players.

The research from LRG also found that 80 percent had at least one connected TV device in 2020, 69 percent in 2017, and 38 percent in 2012. In 2024, expect this number to grow even more as consumers continue to adopt streaming services.

via LRG

Surge in Programmatic CTV Advertising Spend

As more consumers adopt streaming services, brands are following suit and programmatic CTV advertising is expected to experience substantial growth. In 2023, connected TV (CTV) advertising spending in the United States is projected at 26.92 billion U.S. dollars, according to eMarketer.

At current pace, CTV ad spend is expected to grow to 43.59 billion U.S. dollars by 2026.

Advanced Targeting Capabilities

Targeted advertising on CTV platforms allows advertisers to reach specific audiences effectively. A survey conducted by the IAB revealed that 84 percent of advertisers believe CTV delivers better targeting capabilities compared to traditional linear TV.

In a study by Premion, respondents listed precision audience targeting as one of the top benefits of CTV.

Examples of audience segments include:

  • Demographic Segmentation: Factors such as age, gender, income, education level, and household composition.
  • Geographical Segmentation: Geographical locations such as specific city or region to more granular targeting options like ZIP codes or designated market areas (DMAs).
  • Behavioral Segmentation: Targeting audiences based on their past behaviors and activities such as previous interactions, content consumption patterns, search history, and app usage.
  • First-Party Segmentation: Data collected directly from a brand's own customer base.
  • Contextual Segmentation: Displaying ads to users based on the program, genre, and streaming app they are watching.
  • Retargeting: Serving ads to people who have previously interacted with a brand or website.

In 2024, expect brands to become even more sophisticated in the ways they segment audiences to deliver highly personalized and relevant ads.

Shoppable Ads and Enhanced Interactivity

CTV advertising will increasingly feature shoppable ads, allowing viewers to make purchases directly from their connected devices. Shoppable ad formats take the viewer from inspiration to purchase seamlessly. By incorporating direct purchasing capabilities within the ad experience, advertisers can shorten the conversion funnel and boost sales.

Here are some shoppable ad formats in CTV advertising:

  • Product Showcases: Advertisers can showcase products or services within the ad, providing viewers with relevant information and a direct path to purchase. With a click or tap, viewers can access detailed product descriptions, pricing, and add items to their shopping cart.
  • QR Codes and Shortlinks: Advertisers can integrate QR codes or shortlinks into the ad experience, enabling viewers to scan or click for instant access to the product page or a special promotional offer. This streamlined process simplifies the path to purchase and enhances viewer convenience.
  • Voice-Activated Purchases: With the increasing prevalence of voice-activated devices, advertisers can leverage voice commands in shoppable ads. Viewers can use voice assistants to make purchases directly or add products to their shopping lists, making the buying process effortless.

Integration of CTV with Cross-Channel Campaigns

CTV will increasingly become a central component of cross-channel advertising strategies. It is projected that CTV ad growth will reach nearly $20 billion by the end of 2024. According to a research study by Digiday, respondents stated that an appeal of CTV advertising is that it can fit in seamlessly with an existing omnichannel strategy. Most marketers surveyed are running CTV ads alongside existing channels, especially social media, display advertising and mobile video.

As CTV advertising continues to gain momentum, the landscape is set for significant growth and continued innovation in 2024. With the rise of programmatic and addressable advertising, enhanced targeting capabilities, and the integration of CTV into cross-channel campaigns, advertisers have a unique opportunity to connect with a growing and engaged audience.

The views and opinions expressed are solely those of the contributor and do not necessarily reflect the official position of the ANA or imply endorsement from the ANA.

Larisa Bedgood is VP of marketing from Porch Group Media.