What Marketers Need to Know About CTV and OTT in 2024 [Infographic]

Posted on October 15, 2023 by Media Culture

The landscape of television consumption has undergone a significant transformation. Connected TV (CTV) is at the forefront, providing content directly through internet connections on large-screen televisions. Unlike Over-The-Top (OTT) content, which can be accessed on a myriad of devices, CTV is specific to digital content viewed on televisions.

CTV Audience Expansion

The last several years have marked a pivotal shift in viewership patterns. Streaming surpassed cable for highest viewership for the first time in July 2022, and this ascendancy shows no signs of slowing.1 CTV captivates a younger, yet broad demographic spectrum, delivering personalized, on-demand content. Notably, the average CTV viewer2 is a significant 16 years younger than their Linear TV counterpart.3

CTV Advertising Revenue on the Rise

As of 2023, a notable 68% of people in the U.S. own a Connected TV device,4 with projections indicating a 6.1% growth in CTV viewership by 2027.5 This expanding user base corresponds with a burgeoning potential for advertising revenue. Estimates project a consistent rise in CTV ad revenue,6 underscoring the unmatched potential of this medium. By 2027, it's projected that CTV ad expenditure will constitute 42% of the total CTV/Linear ad spend, a considerable increase from 29% in 2023.7

Diverse CTV Platform and Device Offerings

The modern streaming ecosystem boasts a rich assortment of platforms, each with its distinct business model. From Subscription/Ad-Supported Video on Demand (SVOD/AVOD) platforms like Netflix to Free Ad-Supported Streaming TV (FAST) options such as The Roku Channel, and Live Streaming entities like YouTube TV, the breadth of offerings ensures content for every viewer's preference.8

When it comes to device usage, Smart TVs lead the way with 152 million users, followed by Roku devices and Amazon's Fire TV, with 125 million and 108 million users, respectively.9 In addition, brands like Roku, Amazon, and Apple not only offer media players but also complement them with streaming services, establishing robust digital ecosystems.

The Evolution of Streaming and CTV

When YouTube was launched in 2005 as a video-sharing platform, few could have predicted the rapid progression of streaming in the ensuing years. Notable players like Netflix and Hulu (both established in 2007) have stood their ground in the so-called "streaming wars", whereas some, like Quibi and CNN+, have faded into obscurity.

Beyond merely influencing media consumption, streaming has revolutionized the entire industry. Entertainment powerhouses such as Disney, Warner Bros., and Paramount have had to restructure their strategies, aiming to rival digital-first entities like Netflix, Apple, and Amazon.

Navigating the Future of Advertising

In an age where CTV is reshaping media consumption, advertisers must evolve in tandem. Harnessing precise audience targeting, enriched viewer engagement, and data-driven insights isn't just a strategy—it's a necessity. As CTV's influence continues to surge, the brands that fully embrace its potential will lead the vanguard in the advertising revolution. Contact us to unlock the boundless possibilities of CTV. 

CTV OTT Insights 2024

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