Optimisation, Interactivity, and AI: Trends that will dominate CTV in 2024

In the ever-evolving landscape of television advertising, the spotlight is now firmly on Connected TV. The transformative power of CTV is poised to redefine how people engage with content, offering a personalized and immersive viewing experience, globally. CTV penetration is estimated to have grown to over 30 million households by the end of 2023, and is projected to double by 2025. According to a Finecast-Group M report, the changing landscape of television in India projects that CTV ad spend will increase at a CAGR of 47 percent in the country until 2027. In addition, it forecasts that ad spends will reach nearly $395 million by 2027. The advancing new trends in the M&E sector have led to a noticeable change in the TV viewing habits of Indian audiences, leading to Connected TV making a strong appearance in India. Embracing Programmatic Precision

In the realm of Indian television advertising, a significant evolution is propelled by the rise of Connected TV viewership and the adoption of programmatic spending strategies. Traditionally, advertising budgets in India were constrained by upfront commitments, limiting the flexibility and adaptability of campaigns. However, as CTV continues to gain traction among Indian audiences, brands are increasingly turning towards programmatic spending, aligning with global trends that prioritize data-driven approaches. This shift marks a pivotal moment in the landscape of Indian television advertising, transforming it into a consideration-driven channel that embraces the dynamic expectations of modern audiences. Programmatic spending enables advertisers to leverage data insights and automation to deliver more targeted and effective campaigns, ensuring maximum impact and ROI.

Finding A Way Around The Cookie-less World

As the advertising industry continues to navigate the shift towards cookieless environments, CTV stands out as a sweet alternative for marketers seeking personalized advertising solutions. Connected TV represents a phenomenal shift in the way advertisers approach personalized advertising in a cookieless world. By embracing contextual targeting, data-driven insights, and interactive engagement, CTV offers a compelling alternative to traditional cookie-based advertising methods. As marketers adapt to the changing landscape of digital advertising, CTV presents a ripe opportunity to deliver sweet alternatives to cookies and create meaningful connections with audiences in the ever-evolving media landscape. We can expect to see savvy marketers look to replicate CTV strategies across the advertising landscape.

Rise Of AI In Advertising Sectors

Within the TV industry, the utilization of AI is still largely experimental. However, we anticipate a significant evolution of AI's role as a vital component in creative processes, campaign analysis, and brand activations within both advertising agencies and brands themselves. AI has been a topic of discussion for years, and today, advertisers are increasingly expecting their technology and agency collaborators to incorporate it into their strategic endeavors. Agencies will ramp up their AI initiatives and integrations to support more efficient and impactful advertising.

Interactive Ads To Rise

In the landscape of Connected TV interactivity has taken center stage, signaling a significant shift towards more engaging advertising experiences. The trend of interactivity is poised to redefine the way ads are consumed and interacted with on CTV platforms. Interactivity has become a buzzword capturing the attention of advertisers and viewers alike. This shift is driven by the desire to create more immersive and personalized ad experiences that resonate with modern audiences by incorporating in-unit interactive elements such as QR codes, polls, and shoppable overlays; there is an opportunity for advertisers to create immersive ad experiences that captivate viewers attention and drive action. CTV has also become a prime channel for advertisers targeting younger audiences, particularly Gen Z. As per Innovid, CTV campaigns drove a 5.45% engagement rate, compared to a rate of 0.97% for mobile and PC in 2023. The Interactive Advertising Bureau (IAB) found that nearly one-third to one-half of ad buyers plan to shift investments toward shoppable and retail media network ads. By leveraging the power of interactivity, advertisers can unlock new opportunities to connect with audiences and drive business results in the evolving world of CTV advertising.

Prioritize Optimization

As advertisers are investing more money in advertising, there's a pressing need for optimization to keep pace. However, a significant challenge arises from the disjointed approach of measuring ad performance on one platform while optimizing on another, resulting in inefficiencies. By integrating technology solutions or platforms that enable seamless integration between measurement and optimization functions, marketers can streamline processes, improve decision-making, and achieve better business outcomes in the ever-evolving digital advertising landscape. We anticipate marketers placing a heightened emphasis on optimization, aiming to streamline processes and enhance effectiveness through the integration of technology solutions or platforms.

Historically, television advertising in India was confined by high costs, restricting access for smaller brands. However, a global perspective reveals that CTV is dismantling these barriers not only in India but across markets. The United States and European markets are witnessing a seismic shift as advertisers reallocate budgets from traditional TV to CTV, drawn by its democratizing potential. This shift isn't just about numbers; it's a fundamental change in approach, making television advertising accessible to brands of all sizes on a global scale. For instance, Roku recently established a pilot partnership with Walmart to integrate shoppable ads into their platform. Viewers can click on shoppable ads from the retailer and purchase directly from the Roku platform, as simple as using a TV remote.

With increasing adoption, evolving consumer preferences, and innovative content offerings, CTV continues to emerge as a transformative force, redefining how content is created, distributed, and consumed. The impact of CTV reverberates globally, disrupting the traditional dominance of cable TV This global shift is not merely about democratizing advertising; it is part of a broader trend transforming how brands engage with viewers worldwide.

Russhabh R Thakkar is the founder and CEO of Frodoh World, an ad tech company.

Views expressed are personal.