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Connected TV advertising broke records after ad spend reached $1 billion in June, according to a report by ad-research company Vivvix (formerly known as Kantar).
The research investigated how ad dollars are spent across a growing list of streaming platforms, such as Discovery+, Max (formerly HBOMax), Roku, and YouTube.
Growth categories included household supplies and beverages – which rocketed by more than 300% year-over-year. However, verticals like pets, as well as cosmetics and beauty didn’t trend as highly.
The industry milestone, which supports Vivvix’s predictions for the first half of 2023, comes at a time when digital formats account for 70% of total ad spend, in which video is the fastest growing format.
Why we care. This report highlights that the advertising industry recognizes the importance of running campaigns on CTV platforms, and which sectors in particular are increasing their ad spend. It’s important to monitor competitors’ strategies so that you can make informed decisions, respond to trends, capitalize on market opportunities, and maintain a competitive edge in your industry.
Promising forecast for YouTube. YouTube also experienced significant growth in the digital ecosystem, according to the Vivvix report. In June, the Google-owned platform generated $1.4 billion in ad spend across it properties. Based on this performance, Vivvax predicts that ad spend will continue to grow, particularly as non-linear properties continue to capture more viewership.
Looking ahead. CTV advertising is expected to grow by 13.2% globally in 2023 to $25.9 billion, according to GroupM’s mid-year forecast. In the US specifically, CTV advertising is expected to grow by 21.2% year-on-year this year as the majority of Americans continue spending so much time streaming TV every day, reports Insider Intelligence.
What has Vivvix said? Andrew Feigenson, CEO of Vivvix, said:
“This milestone validates the projections on CTV’s ascendency from experimental to a ‘table stakes’ medium. It’s where viewers are increasingly spending their time, and in order to be competitive, brands must play ball on those fields, and understand what competitors are doing on these platforms.”
“The data really informs brands where the white space is within the video journey as well. We noticed, for example, a dearth of pet brands advertising on Disney+ in June. That signals a real opportunity.”
“Being able to take a broader view of the video landscape helps advertisers see the strategy their competitors are using across various channels. The shift of ad dollars between new and emerging platforms can make it difficult for advertisers to connect the dots, so it’s important for brands to have access to a wider lens. We are confident that more brands will continue to allocate more of their advertising budgets to CTV and other digital media, which will affect traditional TV advertising.”
“To give brands the deepest, richest and fullest picture of advertising spend, Vivvix is purpose-built to look across the full spectrum of ad platforms, from linear to digital. We are continually investing in expanding our coverage across all digital media, including CTV, and social video like YouTube. Vivvix gives advertisers a view into more than $162 billion worth of digital ad spend which translates to a deep level of competitor ad campaign visibility.”
Deep dive. Read the Vivvix report in full for more information.
The post CTV ad spend hits record-breaking $1 billion in June appeared first on Search Engine Land.
