1 How marketers are approaching the TV ad renaissanceCONNECTED TVWHAT’S IN THIS REPORT2 Executive SummaryIt’s been many years now since the first obituaries were written for television advertising.It seems they were premature. While budgets have undoubtedly become more digitally-focused, so too has TV, which is experiencing its renaissance through the rise of Connected TV.TV, in fact, could more accurately be described as having been in transition, rather than decline.But what exactly is CTV? It is, after all, a term that is often misunderstood. According to performance marketing platform MNTN, it is television content accessed by apps and streamed over smart TVs or a connected OTT device. At its core, CTV is on-demand TV.And it’s on the rise. CTV viewership surpassed cable for the first time in 2022, with almost nine out of 10 US TV households now owning at least one Connected TV.Furthermore, a shift in viewing preferences has taken place. As economic pressures bite, and more households cut cords, 73% of viewers now prefer to watch free, ad-supported content rather than pay for ad-free content. As linear TV ad spend continues to fall, dollars allocated to CTV and the tech-driven opportunities and outcomes it creates, are steadily climbing. By 2025, CTV ad revenues are forecast to be more than half that of linear TV, a remarkable development given the relative infancy of CTV. It is a channel that has become attractive to marketers on several fronts, the ability for advanced targeting among them.But more than that, CTV is building a bridge between two worlds. Not only does it enable marketers to reach and engage with specific audiences, it can simultaneously deliver the high-impact brand presence historically associated with linear TV. The old “performance versus brand” argument is becoming moot — on CTV, the two marketing objectives are working in tandem. CTV in the Current State of PlayTargeting and the Age-Old Brand Versus Performance DebateHow Can CTV Marketers Decide What to Measure?Overcoming the Barriers to CTV3 However, alongside the opportunities, there are challenges.That is why MNTN commissioned independent research with Advertising Week — to investigate the current CTV landscape, digging deep into what marketers really think about CTV, as well as insight into how the platform may evolve. This research surveyed more than 100 marketing professionals drawn from those working in brands, agencies and technology vendors. The picture that emerged was an advertising landscape in which CTV is playing a clear and growing role. Not only have a majority of respondents used CTV in some capacity over the past 12 months, but they have viewed it as either extremely or very important in the marketing mix.And its relevance is only set to rise over the next five years, according to an overwhelming number of respondents. But...
