June Sets New Record: CTV Ad Spend Soars to $1 Billion
In a historic milestone, CTV ad spend reached a staggering $1 billion in June, according to a report by ad-research company Vivvix. This record-breaking figure underscores the growing prominence of CTV as an advertising channel.
The pandemic-induced changes in consumer behavior, including the rise in streaming and cord-cutting, have accelerated the adoption of CTV platforms. Advertisers are keenly aware of this shift and are allocating significant budgets to tap into the vast potential CTV offers.
This surge in CTV ad spend has not only captured the attention of marketers worldwide but has also reshaped the way brands engage with their audiences.
Key Highlights
- Verticals like household supplies and beverages are growing by more than 300% on a year-over-year basis on CTV
- Categories like Pets and Cosmetics & Beauty did not trend as highly in the June report.
- There was a dearth of pet brands advertising on Disney+ in June.
- Ad supported video on demand (AVOD) grew 79% YOY in 2022 and totalled 5% of all online video
- YouTube generated $1.4 billion in ad spend across its properties.
Unlocking Opportunities for Advertisers
The study paints a portrait of an advertising landscape where CTV plays a pivotal role in shaping consumer perceptions and decisions. Businesses can position themselves at the forefront of this transformative wave, capitalizing on the opportunities presented by CTV advertising to foster brand loyalty, expand market share, and drive lasting success in the digital era.
Let’s see how!
Growth Potential
The notable growth of verticals like household supplies and beverages on CTV presents a prime opportunity for advertisers to tap into these segments. Tailoring campaigns to address the needs and preferences of these audiences could yield substantial returns.
Niche Audience Targeting
The lack of pet brands advertising on Disney+ highlights the potential for niche audience targeting. Advertisers can identify platforms with audiences closely aligned with their products, ensuring more effective engagement and conversion rates.
AVOD Expansion
The 79% year-over-year growth of Ad-supported video on demand (AVOD) indicates a growing demand for free content. Advertisers can leverage this trend by strategically placing their ads on AVOD platforms to reach wider audiences and achieve better visibility.
YouTube's Dominance
YouTube’s substantial ad spend demonstrates its immense reach and effectiveness. Advertisers can capitalize on YouTube’s diverse content and massive user base to target specific demographics and achieve high engagement levels.
Ad Creativity and Innovation
As CTV continues to evolve, there’s ample room for creative and innovative ad formats. Advertisers can experiment with interactive and engaging content that takes advantage of CTV’s capabilities, enhancing user experience and brand recall.
Personalization Opportunities
The changing landscape of consumer behavior on CTV allows for personalized advertising experiences. Advertisers can leverage user data to tailor content and ads, creating a more relevant and engaging interaction with viewers.
Cross-Channel Integration
Advertisers can integrate their CTV campaigns with other digital marketing channels for a cohesive brand presence. This synergy can enhance brand recognition and reinforce messaging across different platforms.
Early Adopter Advantage
The relatively early stage of CTV advertising compared to traditional TV presents an advantage for those who embrace it early. Advertisers can establish themselves as leaders in this space and build a strong brand presence.
Charting the Path Forward
As we reflect on the extraordinary achievements of June, it is evident that CTV advertising has solidified its position as a dominant force in the marketing landscape. The trajectory of CTV advertising is irrefutably ascendant, redefining how brands communicate with their audiences. The record-breaking month of June serves as a testament to the potential and efficacy of CTV advertising. To harness this monumental potential, it is imperative for brands to embrace CTV’s capabilities, optimize their campaigns with data intelligence, and embark on a journey that leads to unprecedented success.