Over the decades, the way consumers view video content has evolved in profound ways. These viewing habits have branched out from the traditional notion of watching a series of scheduled programs from broadcast media to viewing added content through a cable subscription. Following the advent of the internet and proliferation of mobile and smart devices, how consumers engage with video content has fundamentally changed in more ways than ever before. While mobile video has been rapidly embraced by millennials, smart devices including connected TV has also rapidly gained its momentum.
Following the advent of the internet and proliferation of mobile and smart devices, how consumers engage with video content has fundamentally changed in more ways than ever before
In a nutshell, connected TV (CTV), sometimes called “smart TV”, is a home entertainment device (television set, video game consoles or streaming video device) that has built-in capabilities to connect to the internet. It is a conduit that allows access to a variety of web-based content, such as internet TV, on-demand streaming media, or over-the-top (OTT) content.
As audiences adopt digital streaming into their households, the growth of CTV use will continue to stay robust, and in fact, set to become one of digital media landscape prime channels. Marketing studies revealed that 69.5 million households in the US already own a CTV device and by 2020, there will be 97.7 million US households using connected TV as their primary video streaming device. Meanwhile in Europe, markets in Germany, France and UK have a higher number of households with connected TV than Italy and Spain. Nonetheless, this is expected to increase by 2020 across all these markets.
The rise of CTV has also made the market a ripe place for advertisers
The rise of CTV has also made the market a ripe place for advertisers. A study by Extreme Reach, an ad management platform, highlighted that connected TV accounted for 38% of video ad impressions for 2018 alone, surpassing mobile’s 30% share for the first time. In 2017, video impressions served via connected TV only reached 14%, which paled in comparison to mobile’s share of 39%. In the Western Europe market, advertising opportunities are also abound with the value of advertising market projected to increase a staggering €105 million in Spain and Italy, €125 million for Germany, €240 million in France and €250 million for the UK market in two years, as revealed by market studies.
Connected TV is emerging as a multi-faceted platform that serves as an avenue not only to video streaming but to a plethora of new applications including social media platforms, music channels, messaging apps, among others. With the ever shifting digital media landscape and what it has in store, the coming years point to a promising future for CTV.