This year, 164 million U.S. internet users will stream video content through a connected TV, and this number is predicted to reach 200 million by 2019. Consumer habits are shifting—they’re choosing to stream videos so they can control how and when they watch. Marketers need to mirror this shift. The trouble is, more than half of media buyers don’t know how to purchase it, but they all want to do so in the near future.
As a marketer, you might say to yourself, “This is a new trend. I’ll give it some time and then I’ll get on board.” In my opinion, you’re going to be missing out big time. Consumers’ path to purchase has changed; it’s evolved from a linear funnel to a windy road with many media touchpoints, thanks to digital media. At present, nearly half (49%) of U.S. internet users watch digital video on connected TVs (CTVs) at least daily, accessing digital video content though over- the-top (OTT) connected devices, smart TVs, and other internet-enabled devices that plug into their TVs (think Google Chromecast). Here’s a huge stat: 22% of daily ad requests for CTVs are during primetime hours (8:00p – 11:00p), meaning that your expensive, primetime, national TV ad isn’t being seen, but a digital video ad on Connected TV is.
This trend is not going stop. By 2025, only half of U.S. consumers under 32 will pay for TV services, 15% will be cord cutters, and an astonishing 35% will be cord neverers (having never paid for traditional TV services. And yes, this is a thing).
With OTT ad revenue expected to reach $31.5 billion by 2018, how can you get in on the cutting edge and get your message on the screens consumers want to watch? It’s pretty easy, actually. Most video networks have inventory across connected TVs. YouTube, Amazon, and Hulu are the largest providers that have ad space available. Making this even easier is that traditional TV ads can be easily repurposed for digital video.
So make sure you’re taking advantage of the opportunity that the streaming TV evolution has for brands. It’s a trend that’s only going to increase in the future, and it’s a powerful and efficient way to reach the precise audience you need through cross-device targeting.
Connected TV Ads Important for Future-but Few Know How to Buy Them, eMarketer.
The Future of digital TV Advertising, in 5 Charts, DigiDay.com
US Connected TV Usage, Digital Content Gives the ‘First Screen’ New Life, eMarketer.
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