Connected TV Advertising is Expected to Knockout Close to $7 Billion in 2019
Opinion Piece with CEO & Co-founder Dan Alexander at Bold Screen Media.
AdAge recently announced that advertising on connected TV is anticipated to reach just under $7 billion in revenue by the end of this year. CTV ad spending in the US is expected to reach $8.88 billion by 2020 and surpass $10 billion by 2021 according to research done by emarketer. With 'Pure CTV' surpassing $7 billion in revenue, it is still only 10% of the traditional TV marketplace.
Outside of the points this article makes around the inefficiencies around universal measurement, attribution and programmatic, there are a few other key issues with continuing to scale ‘Pure Connected TV.’
Education: Brands and their agencies are not fully educated on all the available channels, nor all the streaming services accessible to them for advertising. Connected TV is a fast-growing market, and it can be hard to keep up with.
Discovery: Top platforms such as ROKU aren’t making it easy for brands to understand the 3,000+ apps that ROKU has available. Typically they tend to depend on the Top 50 channels or the ones that ‘the average Joe has heard of.’ The mid-tail of ROKU is almost completely undiscoverable, yet these channels have a great audience, an abundance of installs, stellar ratings and great content!
TV Like Experience: We want the TV ad marketplace dollars! That means we need things like SSAI, so brands can stitch their ad to an individual piece of content, rather than buying ROC/RON. This needs to be adopted by all channels to keep it uniform because we know linear plus digital is better than linear alone.
Brand Safety: While there are some 3rd party brand safety/fraud vendors out there that are MRC accredited for CTV, they are not 100% bullet-proof. This needs to be flushed out, so brands feel safe in CTV, just like they have on TV for the past ~70 years.
Bold Screen is focused on doing its part to help with the discovery of the mid-tail of ‘Pure CTV’ by providing education on this great niche of ad-supported content and giving comfort around fraud and performance. Over time, all the issues will continue to become more mature, and we see ‘Pure CTV’ sharing more of the $70 billion TV ad marketplace very soon.