The distribution of live sports on CTV is driving one of the biggest disruptions to traditional linear TV advertising. NBCUniversal Olympics inventory was made biddable on Peacock for the first time, allowing advertisers to benefit from over 4.5 billion minutes of coverage streamed during opening weekend. This level of engagement indicates that live sports might be a pivotal factor in making CTV advertising indispensable for brands.
With ad-supported subscriptions to major streaming platforms becoming more affordable, CTV ad spend is forecasted to grow by 39.6% by 2027. This evolution reflects a departure from niche origins to a more robust advertising ecosystem, where relevant and engaging ads can enhance brand ROI and keep audiences engaged. Hence, the significance of live sports in attracting advertisers cannot be overstated.
Netflix's transition from avoidance to acceptance of CTV ads has been notable, with a 34% growth in user engagement in its ads tier within just one quarter. Its forecasted advertising revenue reaching approximately $1 billion this year underlines the shift in consumer behavior towards ad-supported content and the increasing attractiveness of CTV advertising for brands.
The latest IAB report reveals that three-quarters of CTV buys are now being conducted programmatically, emphasizing a shift in media buying strategies towards greater precision and engagement. While publishers remain cautious due to fears of undervaluing premium content, the trend towards programmatic buying suggests a growing acceptance of CTV as a sustainable advertising channel.
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