What's Happening?
Connected TV (CTV) has become a dominant channel for advertising consumption in the United States, with ad views increasing by 8% year-over-year. This growth is driving the adoption of programmatic advertising, which now accounts for 30% of ad delivery
in the US. The FreeWheel Video Marketplace Report highlights that the majority of ad views in the US occur on live content, largely due to the popularity of live sports and Free Ad-Supported Streaming TV (FAST) channels. Programmatic advertising has seen a significant increase, with a 29% rise in ad views compared to the previous year. New advertisers entering the programmatic space have achieved 29% more ad views than those who joined in the first half of 2024. Behavioral targeting is the predominant strategy for programmatic audience targeting, accounting for 51% in the US.
Why It's Important?
The rise in CTV ad views and programmatic adoption is reshaping the advertising landscape in the US. This shift allows publishers to enhance monetization strategies and improve ad delivery efficiency. As programmatic advertising grows, it offers advertisers more precise targeting capabilities, potentially increasing ad relevancy and reducing viewer ad fatigue. This development is crucial for advertisers seeking to maximize their reach and engagement in a competitive market. The increased adoption of programmatic advertising also signifies a broader trend towards automated ad delivery, which can streamline operations and reduce costs for publishers.
What's Next?
The continued expansion of programmatic advertising in the US is likely to influence publishers' strategies further. As automated ad delivery becomes more prevalent, publishers may invest more in technology to optimize ad frequency and relevancy, enhancing viewer experiences. The growth in programmatic advertising could also lead to increased competition among advertisers, driving innovation in targeting and content delivery. Stakeholders in the advertising industry will need to adapt to these changes to remain competitive and capitalize on new opportunities in the CTV space.
Beyond the Headlines
The shift towards programmatic advertising on CTV platforms may have broader implications for the advertising industry, including ethical considerations around data privacy and targeting practices. As behavioral targeting becomes more common, advertisers and publishers must navigate the balance between personalization and consumer privacy. Additionally, the growth of CTV and programmatic advertising could influence cultural consumption patterns, as viewers are exposed to more tailored content and advertising experiences.
