What TV and Media Execs Really Think of CTV Advertising
by Stephen Graveman
4 Min Read
Speak to a CTV Expert
Why this year drove more viewers, advertisers, and dollars to Connected TV
4 Min Read
Without a doubt, 2022 was the year Connected TV rose to prominence. This year, streaming outperformed broadcast and cable TV for the first time, new CTV targeting and measurement capabilities were unveiled, and next month every major service will support ads. Today, more audiences than ever before are streaming content and watching ads—and brands are employing the latest CTV technology to find and convert them. But what does this rapid change mean for the advertising landscape at large, and how are advertisers reacting?
Richard Girges, VP of engineering at MNTN, recently chatted with eMarketer about the latest CTV viewership and advertiser trends. From what advertisers are hoping to accomplish with CTV advertising to predictions for 2023, Girges provided his insider knowledge to help advertisers make the most of this fast-evolving ad platform. If you missed it, a recording of the webinar can be found here—or you can keep reading for a high-level recap of the conversation below.
The conversation with Girges started with eMarketer reflecting on some earlier data showing CTV’s rapidly growing viewership. “What challenges does this influx of attention present when it comes to creating CTV ad tech?” eMarketer asked.
“We’ve seen more consumers [recently] cut the cord and move to streaming television than ever before,” confirmed Girges. “What this means is a lot more target audiences for a growing number of brands. 62% of MNTN’s customers are first-time TV advertisers and that means we’re expanding the total market for TV advertising.” Girges explained that while this transformational shift is driving excitement for brands and the TV landscape, it comes with its own set of challenges. “[MNTN] has to provide a comprehensive technology solution for big and small brands,” he admitted. “The silver lining is that brands, regardless of their size, are looking for two high-level things: precision targeting and robust measurement. We’re laser-focused on both of these aspects and always working to optimize them.” To help these brands, MNTN recently unveiled new tools like affinity-based targeting, incrementality reporting, and audience segment reporting.
MNTN Performance TV’s ability to democratize the TV ad and make it available for brands of all sizes struck a chord with the eMarketer host. “62%—that’s a pretty healthy chunk of brands that are getting into television advertising for the first time,” noted eMarketer. “What are these brands all hoping to accomplish with CTV, and what kind of insights can you share on the technologies that help them achieve these goals?”
“I think one thing all brands are looking for is better performance measurement,” said Girges. He noted that current economic conditions have ad budgets under scrutiny and belts are tightening. “Marketing and advertising have always had a bit of an uphill battle trying to justify ROAS and defend ad budgets. CTV takes the guesswork out of reporting and helps to prove that campaigns are performing,” Girges said. He pointed out that measuring campaign performance in real-time was unimaginable for television advertisers just a few years ago and really marks a seismic shift in how we think about TV ads.
Girges went on to point out that MNTN’s customers report being drawn to Performance TV for its industry-leading insights and level of detail in reporting, including the ability to bring down campaign performance into a wide range of KPIs. “Our brands don’t have to wait for these reports,” said Girges. “They can simply log into the UI and see how it’s going.”
Emarketer noted that 2022 saw streaming services like Disney+ and—perhaps most surprisingly of all, Netflix—announce ad-supported offerings. “Basically every major platform supports, or will soon support, some form of ads. What is this doing to advertiser behavior?”
“There’s an influx of brands rushing to CTV to accommodate the growing audience,” confirmed Girges. “Not only are their audiences streaming more, but CTV allows these brands to finally target and reach them. Girges noted that 25% of brands recently polled say that CTV is the most valuable ad channel available and programmatic ad spend is expected to increase 39.2% in 2022, hitting $21.2 billion. “While you have this, the streaming landscape is exploding,” said Girges. He noted the last few years saw the rise of HBO Max, Peacock, Disney+, and other services, and the days of CTV being dominated by just one or two platforms is over. With so much market fragmentation appearing in a short period of time, advertisers are being driven to programmatic, cross-network, audience-first solutions, like MNTN Performance TV. “These solutions ensure that brands are always and easily finding their customers, regardless of when and where they’re watching,” said Girges.
Girges had a lot more to cover with eMarketer, including what brands can expect from measurement in 2023, and what new CTV features mean for advertisers and viewers. Click here to watch the full recording.