Response from meta.ai:
Connected TV (CTV) is expected to undergo significant transformations in the next five years, driven by advancements in digitalization, video-on-demand (VoD) providers, and shifting consumer behavior. Here are some key trends that will shape the CTV landscape:
- Advancements in Technology: The integration of artificial intelligence, analytics, and 5G networks will enable more flexible and mobile consumption of media content, further transforming the CTV experience ¹ ² ³.
- Increased Personalization: CTV advertising will rely more on personalized content, leveraging user data to optimize ads and enhance customer engagement. This shift towards personalization will lead to more effective advertising and better return on investment for brands.
- Rise of Streaming Services: Streaming companies like Netflix, Amazon, and Apple will continue to dominate the CTV market, investing in original content and direct-to-consumer streaming services. Traditional TV and video industries will need to adapt to this new landscape by forming alliances and investing in digital competence.
- Growing Ad Revenue: Connected TV advertising revenue is projected to increase from $16.6 billion in 2022 to $27.7 billion in 2026, driven by the growth of streaming services and the adoption of ad-supported tiers.
- Changing Consumer Behavior: Viewers will increasingly expect relevant and attractive content that can be accessed anytime, anywhere, and on various devices. CTV will become an essential part of their viewing journeys, with a focus on immersive experiences, mood-based content, and shared viewing experiences.
In terms of audience, CTV viewers are expected to remain younger, with people under 34 spending more time watching CTV. Homes with streaming devices will also be more likely to be higher-income households ⁴.
Overall, the future of connected TV will be shaped by technological advancements, changing consumer behavior, and the rise of streaming services. As the CTV landscape continues to evolve, it will be crucial for industry players to adapt and innovate to stay ahead.
Sources according to meta.ai:
- Changes in digital advertising spend – PwC
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Future scenarios for the TV and video industry by 2030 – Deloitte
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Future of TV: Connected TV trends & strategy – Think with Google APAC
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The Connected TV Experience: Transforming the Living Room – Nielsen