Why advertising on OTT and CTV is important for 2023

How marketers decide to launch brand awareness and engagement campaigns to get the best return on investment will be very interesting in 2023.
As time goes on, advertisers will need to focus on methods that get results and can be changed quickly.
One important thing for marketers to think about for the new year is how to get the best information about how their campaigns are doing.
Think about how people have switched from watching linear TV to digital streaming when deciding which media to use to reach or grow your current customer base.
Most TV viewers stream on multiple devices, so investing in connected TV (CTV) and over-the-top (OTT) advertising lets you reach these viewers with premium inventory and brand-safe environments.
Also, adding programmatic technology to the mix of media goes one step further because it lets you find and reach the same viewer even as they switch between devices. It can also pause, optimize, or even cancel the activity at any time.
Advertisers will have to change their campaign messages based on how much money they have to spend on each medium.
Explore the OTT and CTV landscapes in more depth and learn about all the benefits they offer for your 2023 marketing strategy.

TARGETING AND MEASUREMENT INFORMATION

Data-driven marketing is more important than ever when it comes to connecting ad dollars to campaign results. Also, as digital capabilities change, the use of data for targeting and measuring will only grow.
Most of the talk about CTV is about apps and inventory, so you can really stand out by using data to find the right audience and households to target.
Campaigns are led by ways to measure the impact of targeted CTV ads, such as website visits after the ad. This makes sure that ad dollars are spent wisely.
Brands can use data insights to help with ad creative goals by sorting results based on which ads and strategies worked best.
Overall, improvements in targeting and measuring technologies have already been very helpful to marketing.
Here are some recent numbers that prove that advertising on OTT and CTV is a long-term solution:
This year, CTV ads will likely cost more than $21 billion, and by 2023, they will cost $26 billion.
By the end of 2023, OTT video ad spending is expected to be close to $10 billion, which is 3.4% of all digital ad spending and 10.2% of all video spending.
By 2024, CTV advertising budgets are expected to be close to those of linear TV, having gone from one-tenth of TV ad spend to exactly half.
Traditional TV has been a mainstay of marketing campaigns for a long time, but CTV’s quick rise shows that advertising budgets are about to change.
Advertisers know how powerful TV ads can be, but as the TV screen changes, so do their marketing efforts. At the moment, CTV offers metrics based on performance that can be used to measure everything from the top of the funnel to conversions.

ADVERTISING AUTOMATION AND PROGRAMMING

Programmatic technology makes it easy to reach and send your message to many people at once.
When added to CTV or OTT, this software automates the real-time bidding process and will be a crucial part of any strategic media plan.
Here are some of programmatic CTV and OTT advertising’s features and strategies:
Omnichannel marketing strategies, cross-device targeting and tracking, and sending the same message to the same people on different devices
Based on these audience segments, first-party data activation and lookalike audience modeling
The ability to retarget based on location, website visitors, and audiences who have already shown interest.
Linear TV extension (LTVE) was created to ease the change from analog to digital television.
Through advanced retargeting, ads can be seen on CTV, OTT, laptops, tablets, and mobile devices.

WHY ADVERTISERS ARE SPENDING MONEY ON PROGRAMMING SKILLS

Programmatic ad-buying responds instantly to any change in audience behavior and sets the stage for OTT and CTV advertising to have its best year to date.
Even compared to this time last year, programmatic advertising could reach 92% of households in the first quarter of 2022.
Most importantly, programmatic capabilities allow a single campaign to target specific demographics across the digital environment.
Experienced programmatic providers like us make sure that this automation is tailored to your audience’s needs so that they see your message on their favorite streaming service.
Here’s how experts in the field predict trends for the coming year:
By 2023, programmatic digital display advertising spending is expected to reach 142 billion dollars, up 33% from the previous year.
Overall ad spending is expected to grow by 5.9% YoY in 2023, with CTV leading all other digital channels with a growth of 14.4%.
In 2023, ad spending is expected to rise on every digital channel but fall on traditional media channels like linear TV. YoY
To stay competitive in a market with lots of different options, marketers use solutions that make buying ads easier and offer campaign measurement across CTV.
With this in mind, A/B testing, sophisticated audience targeting, and real-time reporting on how well a campaign is doing can all fall under the programmatic umbrella.

AMONG TV AUDIENCES, AD-SUPPORTED STREAMING IS ON THE RISE.

The content is what drives streaming services and the people who use them. But to keep paying customers, many of the biggest providers have turned to ads to lower subscription costs.
Because of this, people are watching more ad-supported video-on-demand (AVOD) than subscription-based services. In the end, this shows that people are happy to watch ads in exchange for more content.
Also, the total number of people who watch TV online has grown faster than the number of people who watch TV through cable or satellite.
Most importantly, using OTT and CTV advertising to reach these viewers gives each campaign its own unique solutions:
By 2023, more than half of all US internet users will use AVOD streaming services to watch content. By 2026, that number will rise to 55.8%.
By 2026, there will be 174 million AVOD viewers, with 68.6% of them using OTT video services.
Free ad-supported streaming TV (FAST) has grown a lot, with 29.2% of the US population using it in 2022, up from only 9.3% in 2018.
Paid cable subscriptions have been going down slowly but steadily as a result of these changes.
Since AVOD and FAST channels are being used more and more quickly, targeting strategies have changed to include more audience segments to find niche viewers who are the best customers for your campaign.
As your audience changes and people switch between streaming platforms, you need to be able to reach them wherever they are.

OTT AND CTV WILL CONTINUE TO EXPAND AND CHANGE

As time goes on, it will be harder and harder for third parties to track cookies. But new technologies in OTT and CTV are making marketing better for a future without cookies and beyond.
Also, advertising budgets will be looked at as marketing plans for 2023 are made. Marketers will need to know how the money they spend on advertising affects performance and results.
With new data-driven marketing tools, OTT and CTV advertisers can get the most out of their ad dollars by sending messages only to viewers who are interested in their products or services.
Because this industry is changing, OTT and CTV can offer both long-term solutions and flexibility for the short term. With a more flexible plan, advertisers can make changes from month to month based on the following factors:
About 67.8% of the US population, or 230 million people, will use CTV next year. By the end of 2026, that number will rise to 70%.
CTV ad spending has grown by more than 50% every year since 2018.
In 2023, 16.5% of all display ad spending will go to CTV.
By 2026, 255 million people are expected to use OTT video services.
For CTV to grow in the future, it is important to use different types of advertising.
Instead of only targeting one streaming platform, programmatic OTT and CTV ads can follow target audiences across devices and shows.
Clients need to figure out who their main customers are and design ad delivery and measurement systems that meet their needs.
By working with Over The Top Marketing, advertisers got an OTT/CTV campaign manager with experience dating back to 2015. As we keep bringing out the newest innovations in this technology, we also bring our expertise in ad operations to any marketing plan for 2023.
Our managed services give value to agencies and clients to put them at the forefront of these digital capabilities.
Contact us right away to find out what’s next in advertising for OTT/CTV.