Connected TV (CTV) viewership is approaching an all-time high, and smart advertisers are looking to seize this opportunity to reach broader, more engaged audiences on the medium.
How brands can successfully connect with viewers on the big screen has continued to evolve over the past year thanks to technology and innovation in the streaming space. The rise of FAST (free ad-supported streaming) TV, advancements in artificial intelligence and generative AI and the ability to drive outcomes across the full funnel on CTV have all bolstered the prospects for advertisers to meet viewers at the right moments.
As we approach 2025, it's an ideal time to reflect on the trends and strategies that helped mold CTV advertising this year. The fast-paced and constant evolution of technology, combined with shifting industry dynamics and viewer engagement, has driven exciting growth and opportunity in this space. Now, looking back at what took shape in 2024 can help guide advertisers in fine-tuning their marketing plans for the year ahead.
The move to ad-supported streaming
The shift toward free ad-supported content has created a broader audience pool for advertisers, particularly among cost-conscious consumers looking to avoid subscription fees. In fact, with subscription costs rising, the majority of viewers now say they prefer free ad-supported streaming over paid options.
This continued growth of FAST channels and platforms in 2024 has opened the door to new opportunities for CTV advertisers. Still, ad fill rates on FAST have been noticeably lower this year, likely due to an explosion of supply which is outpacing demand. This signals an untapped opportunity for more advertisers to get in front of audiences on FAST in the year ahead.
Generative AI’s impact on ad effectiveness
Gen AI has undoubtedly been a buzzworthy topic this year, and for good reason. In the CTV space, the technology is unlocking new ways for advertisers to understand and target audiences that simply weren’t possible before.
A good example of this can be found with contextual targeting. The CTV industry is often defined by a lack of transparency and standardization, such as when a movie or show could be categorized as multiple different genres. For example, is “The Office” a comedy or a romance? The truth is it depends on the scene. And, while CTV as a digital medium offers more control than linear in terms of who sees an ad, it still lacks control when it comes to the placement of the ad.
Today, gen AI gives advertisers the ability to more precisely target at the scene level based on factors like emotion, allowing brands to move beyond viewer demographics and meet consumers at the right moment when they’re emotionally primed to receive an ad. With this technology, advertisers can align the emotion of their ads with the emotion of the content on screen right before the ad break, ultimately creating more positive experiences for viewers and driving better outcomes.
In FAST, contextual alignment is especially important since advertisers are operating on the largest screen in the home and within a non-skippable environment. Without strong resonance between ads and content, brands risk alienating audiences and garnering negative attention.
CTV as a full-funnel performance medium
More and more, the definition of “performance” is expanding. For advertisers, performance can come in many forms depending on their goals—some are focused on upper-funnel brand awareness campaigns, while others are looking to drive conversions and purchases. This year, we saw more advertisers start to embrace CTV as a channel that can drive these KPIs across the funnel.
In the past, CTV has always been understood as a medium built for fueling brand awareness, largely for the reasons mentioned earlier—TV as the largest screen in the household and a non-skippable ad environment. But, with newer technologies and better data, CTV is increasingly being recognized as a true digital medium, with the ability to precisely target viewers and place ads strategically.
As we head into 2025, advertisers have an opportunity to refine their CTV marketing strategies to more effectively connect with audiences. This year, the rise of FAST, implementation of new technologies like gen AI, and recognition of CTV as a full-funnel medium are all factors that have helped push the industry forward and bolster the proposition for brands to test new strategies on CTV. In the end, the entire ecosystem benefits as content publishers boost their monetization, viewers receive more positive ad experiences and advertisers drive stronger outcomes.
