WHY CONNECTED TV MATTERS NOW - AN OVERVIEW OF TRENDS, DATA AND GROWTH
Why Connected TV Matters Now - An Overview of Trends, Data & Growth
Picture yourself relaxing on the couch in the evening, watching your favorite show on a smart TV, and seeing an advertisement that's actually relevant to you. This isn't some random ad; it's tailored just for you. Welcome to the world of Connected TV (CTV).
What might seem futuristic is happening right now. In Germany, CTV advertising has secured a strong presence in households and is rapidly becoming a central part of many brands' digital media mix.
The Shift to CTV Advertising – Quiet Yet Remarkable
Many companies are gradually shifting their marketing efforts towards digital channels, with CTV gaining more prominence in the marketing mix. The reason? CTV combines the broad reach of traditional TV with the precise targeting capabilities of digital ads.
The number of CTV users in Germany already exceeds 22 million, with the trend continuing upward. Almost three-quarters of households own an internet-enabled TV. What used to be viewed on a mobile device is now displayed in HD quality on the big screen.
CTV Speaks the Language of Generations – Especially Gen Z & Millennials
Connected TV advertising resonates with young target audiences. Gen Z and Millennials stream, scroll, and shop simultaneously – expecting advertising that matches their habits. Traditional TV loses relevance, while CTV scores with relevance, timing, and added value.
Targeting in CTV means: To reach young, digital-savvy people, one must be present where they hang out. Native advertising formats that blend seamlessly into content and offer genuine value are particularly successful.
Increased Attention Through CTV Reach and Targeting
CTV advertising impresses not only with its reach but also with its quality. Studies show that attention to CTV spots is significantly higher than with traditional TV. Since viewers are often in a focused streaming mode, they are more open to brand messages.
Thanks to data-driven deployment, CTV ads can be precisely tailored according to interests, time of day, or consumer behavior.
Programmatic CTV: Automated and Scalable
What also makes CTV exciting is its technological aspect. More and more campaigns are running programmatically, meaning they're automated through digital booking systems. This allows for faster, scalable advertising campaigns that can be optimized in real-time.
In Germany, this development is particularly dynamic. While CTV is still seen as an add-on in many other markets, independent strategies for the channel are already being established here. Plus, many publishers are heavily investing in their platforms to offer advertisers an attractive and safe environment.
How Streaming Growth Continues to Boost CTV
With the introduction of ad-supported streaming models by Netflix, Disney+, and others, huge areas of inventory open up for CTV advertising in Germany. Around 20% of Netflix users are already using the ad-supported subscription.
FAST channels (Free Ad-Supported Streaming TV) are also becoming more significant, especially for smaller providers, leading to more diverse content offerings and new opportunities for brands to reach their target audiences effectively.
Challenges with CTV? Yes. But Solvable.
While CTV marketing offers many advantages, it also comes with challenges, such as co-viewing (multiple viewers at once) or measuring success across different channels.
The industry is responding: With new measurement methods, CTV analytics, and a focus on first-party data, solutions are being developed to ensure transparency and future security, especially in a world moving away from cookie-based tracking.
Conclusion: CTV Is Here to Stay
The time for Connected TV is now. It’s not just a passing trend; it has established itself as a smart component in the modern marketing mix. Brands that embrace CTV early not only benefit from efficient target group addressing but also from a growing infrastructure, stable inventories, and high user acceptance.
The best part: Getting started is easier today than ever before. Whether large brands or medium-sized companies, those who plan their campaigns intelligently and offer relevant content can achieve real impact in the CTV environment.
Next Steps for Your CTV Marketing
- Focus on audiences, not just channels. Identify where your target audience is truly active – often in the CTV environment.
- Use data smartly. Personalization is beneficial as long as it’s relevant and not obtrusive.
- Combine CTV cross-media. CTV unfolds its impact in combination with Mobile, Social, or Search.
- Test & scale CTV campaigns. Start with pilot projects, learn from the results, and scale efficiently.
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Author: Michael Hinse (Project Lead Business Development)