The TV industry has come a long way from the early days of cord-cutting skepticism. Today, consuming entertainment on the living-room screen over the internet is the norm.
According to Nielsen’s The Gauge, streaming services accounted for 41.4% of TV viewing in July – the largest share for any viewing format in its history. With the rise of cheaper and, in many cases, free ad-supported options, viewers now have an abundance of streaming content available to them, which has introduced new avenues for advertisers to broaden their audiences.
Still, viewership is outpacing ad dollars. This suggests opportunities exist for advertisers to refine their CTV strategies and better tap into the modern viewer experience.
As habits change, so should tactics
Understanding how to effectively engage with viewers on CTV starts with acknowledging the ad experience. On free ad-supported streaming (FAST) channels, viewers usually see nine minutes of advertising content per hour. In July 2023, this reached a peak, with the average ad load per hour increasing to 9.4 minutes, according to new data.
Today, ad load is down 3.4%, though the numbers are gradually rising again. At the same time, ad fill rates are noticeably lower on CTV this year as compared to 2023, likely due to the explosion of supply in the market.
The amount of advertising content per hour directly impacts the viewer experience. Excessive ad load can lead to viewer dissatisfaction and ad fatigue, while a balanced ad load can enhance viewer engagement. This nuance is crucial for advertisers, especially when negotiating direct deals – knowing the frequency and distribution of ads can help them assess whether their campaigns will stand out among the competition.
Amid the rise of ad-supported streaming, too, how viewers engage with CTV content is shifting. Recent data suggests viewers are watching more and for longer periods when they tune into CTV content. Following a slight post-pandemic decline, daily hours of viewing have steadily increased; the numbers show a 5% bump year-over-year, with the last quarter of 2024 expected to be one of the best for CTV viewership.
At the same time, average session length is up nearly 7% year-over-year, suggesting a shift in consumer behavior toward longer content consumption periods on CTV.
These changes in viewership on CTV can justify moving budget away from linear or other channels, in favor of a more diverse marketing mix. Longer sessions indicate more loyal viewers who find the content they’re watching on screen engaging, which gives advertisers all the more opportunity to capture attention and boost ad impact through effective targeting strategies.
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Context is absolutely key to meeting consumers where they are. To keep viewers’ attention on screen during the ad break, context is significant. For instance, while CTV is typically associated with high-quality premium content, advertisers may be surprised to learn that reality TV is the most common genre of content available on ad-supported streaming. By considering factors like genre and emotion, advertisers can deliver more effective messages in the right context to boost positive attention and association with their brand.
Advertisers have new levers to pull
The availability of CTV inventory and increase in viewer engagement present a valuable opportunity for advertisers to be more thoughtful in their approach to reaching consumers on the big screen.
As factors like ad load, fill rate and time spent continue to shift, now’s the time for advertisers to take action by adapting their ad sales strategies to remain profitable, as well as implementing tactics to capitalize on viewership. By considering how both the viewer and ad experience on CTV is shifting, advertisers can refine their approaches to drive real performance on the medium.
