Editorial

Linear TV Advertising Trends for 2023 and the Emergence of CTV

The majority of video advertising spend in the United States is spent on linear TV. Though linear TV ad spending has decreased in recent years, ad spending for connected TV or CTV for short, is on the rise.

If you own or manage a company or are tasked with advertising on behalf of a business and considering the merits of a potential opportunity to advertise on TV, you owe it to yourself to review advertising trends as we transition to 2023.  It is also logical to consider the merits of each unique platform including conventional cable TV, streaming services and other platforms.

Reinforcing Linear TV Ads Through CTV Ads

It wasn’t long ago when linear TV ads were considered the most effective means of connecting with an audience. Traditional TV connects with the masses as opposed to specific demographic cohorts. Alternatively, CTV and other nontraditional streaming services provide businesses and advertisers with direct access to target demographics based on viewing interest. CTV won’t completely replace traditional TV in the years ahead yet it is gradually eroding it with each passing day.  At the moment, traditional TV pay subscriptions are down about 7% per year

The challenge lies in strategically employing linear TV ads and CTV ads in a manner that reinforce one another for a whole that is greater than the sum of its parts. The plain truth is viewing audiences have been fractured across streaming options as well as conventional TV, video games, the web and other forms of digital entertainment in recent years.

Simply running a video ad on linear TV without reinforcing it with ads on CTV and ads in other mediums would leave significant market potential untapped. The key takeaway from linear TV and CTV trends as we transition to 2023 and beyond is that both hold significant importance to businesses of nearly every type and variety. The most successful business owners and managers understand the importance of casting as wide a net as possible with both traditional linear TV ads and CTV ads, connecting with target audiences as well as exposing the value offering to a comparably large pool of potential customers, culminating in a net positive for the business.

Crunching the Numbers of TV Advertising

The transition from 2022 to 2023 is characterized by the overarching trend of consumers pivoting away from conventional forms of media and entertainment such as cable TV to new offerings including CTV.

All in all, slightly less than 60% of video advertising spending goes to linear TV. This figure represents a considerable drop from the previous year in which more than 60% of video ad spending in the United States was spent on linear TV. Furthermore, more than 70% of video advertising spending in the United States went to linear TV in 2020. It is clear that CTV is quickly gaining ground on conventional TV with each passing year.

A Comprehensive Video Advertising Strategy

The top advertisers are developing a thorough understanding of the importance of running video ad campaigns across multiple platforms in unison. Running ads on a single platform essentially renders those ads to a metaphorical silo of sorts in which a limited audience is exposed to the message, greatly minimizing the chances of them spreading the word to others outside of their demographic, interest or limited sphere of influence.

The transition from ’22 to ’23 will be highlighted by concurrent digital advertising campaigns in which businesses and marketers implement CTV advertising into their portfolio and run those ads in unison with conventional linear ads. Such an approach incrementally expands the company’s reach, connecting with even more members of the target audience including those who otherwise would not have been reached with traditional commercials aired on linear TV.

Tapping Into the True Potential of CTV Advertising

As 2022 draws to a close, more business owners, managers and advertisers are recognizing that CTV presents an invaluable opportunity to present a value offering to a specific audience through targeted ads that make a meaningful impact on the bottom line without a significant number of impressions. Part of the appeal of this emerging platform is that it empowers business owners and advertisers with a means of tracking actions online and offline to reveal an accurate return on investment of the CTV ad campaign. Those who seize the opportunity to analyze CTV advertising results and alter their video ad content accordingly will maximize the engagement of their potential audience.

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