target audience: TECH BUYER Publication date: Mar 2023 - Document type: IDC Perspective - Doc Document number: # US50483823
Advertising on Connected TV
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Abstract
This IDC Perspective focuses on advertising on CTV. Advertising revenue across local U.S. media will decline by 0.5% in the coming year, projects the latest forecast from BIA Advisory Services. In addition, buyers estimate spending less on traditional cable and broadcast ad channels, with the IAB projecting a decrease of 6.3% for linear TV. As traditional TV ads and retransmission fees hit flat or negative growth rates in 2023, broadcasters are challenged to lower operating expenses and seek growth opportunities such as CTV. CTV provides traditional linear TV the opportunity to salvage its business as more and more consumers make the switch to streaming services.
"CTV streaming is opening up tremendous opportunities for traditional TV broadcasters seeking alternative revenue sources. Integration with major CTV OS platforms such as Roku, Amazon Fire TV, and others, including smart TV manufacturers, provides broadcasters with exposure to not only "cord-cutters" as their former viewing audience but also "cord nevers" that did not subscribe to cable or satellite services. Focusing on CTV and not just on digital video, in general, provides new ways to leverage both network and local TV ad inventory," said Alex Holtz, research director, Worldwide Media and Entertainment Digital Strategies at IDC. "As audiences continue to move toward streaming channels, advertisers can engage with TV content to connect with customers where they are already spending time, shortening the distance from discovery and inspiration to purchase."