CTV Ads Face Strategy Gap: Professionals Prioritize Awareness, Use Performance Tactics
A recent survey has revealed a disconnect in connected television (CTV) advertising strategies. While media professionals prioritize brand identity, they rely on narrow audience-based targeting methods better suited for performance marketing. This misalignment could hinder the effectiveness of CTV campaigns, despite the medium's growing popularity and projected ad spending of $26.6 billion in the U.S. by 2025.
The survey found that only 45.2% of respondents were 'very familiar' with contextual targeting, a method that aligns better with brand identity objectives. Instead, professionals continue to prioritize demographic targeting (29.5%), interest-based targeting (21%), and geographic targeting (19%).
Brand identity emerged as the top objective for 30% of respondents, followed by revenue growth (28%) and customer acquisition (22%). However, the lack of standardization and unification in content metadata poses a significant challenge for 70% of respondents when developing and assessing CTV campaigns. This could contribute to the 32% of respondents who consider their CTV advertising 'not very effective'.
Despite these challenges, CTV's potential is undeniable. IAB projects a 12% increase in U.S. CTV ad spending from 2024 to 2025. Currently, 27% of respondents allocate 40% or more of their total budgets to CTV, with 46% moving at least 26% of their paid media budgets to CTV over the past three years.
The growing investment in CTV advertising highlights its potential. However, the strategic misalignment between objectives and tactics may hinder its full effectiveness. As CTV continues to grow, understanding and adopting contextual targeting could help professionals better achieve their brand identity goals and improve overall campaign performance.
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