The landscape of Connected TV (CTV) and streaming is rapidly evolving, with significant changes expected by 2025. The ongoing migration of viewers from linear TV to streaming platforms is set to transform both the viewer experience and advertising strategies dramatically. Industry experts are predicting key trends that will shape the future of CTV, forecasting an exciting and dynamic environment for both content creators and advertisers. Understanding these predictions offers a glimpse into how CTV will continue to carve a niche in the entertainment industry.
The Rise of Live Programming on Streaming Platforms
Live programming, which has historically been dominated by sports, is now expanding to encompass a wide range of entertainment options on streaming platforms. Kevin Krim, the CEO of EDO, predicts that by 2025, viewers will have access to a broader array of live events, including comedy specials, concerts, political happenings, and even unconventional programming such as hot-dog-eating contests. The ability of streaming platforms to facilitate real-time, shared experiences is expected to be a significant draw for both viewers and advertisers. This expansion of live content is anticipated to create cultural moments and generate increased engagement across a more diverse audience.
As the availability of live events on streaming platforms grows, viewers can expect a richer and more varied selection of programming options. This trend aligns with the shifting preferences of audiences who crave real-time interaction and shared experiences. The growth in live content is likely to accelerate the already rapid transition from traditional television to streaming services. The unique appeal of these live-streamed events lies in their ability to bring people together in a virtual space, creating a sense of community and shared excitement that is highly valuable in today’s digital age.
The Evolution of Advertising Strategies
With the perpetual shift of audiences to streaming services, CTV is becoming an essential component of modern advertising strategies. Adam Roodman from Yahoo DSP emphasizes that the expansion of ad-supported tiers on streaming platforms will afford advertisers more advanced control over reach, frequency, and targeting capabilities. This development makes CTV an indispensable tool for engaging on-demand audiences, with top platforms like Netflix and Amazon Prime spearheading this trend. As more streaming services incorporate ad-supported models, advertisers will have greater opportunities to connect with viewers in a more targeted and effective manner.
Moreover, innovations in the CTV space are shifting advertising strategies from basic app-level targeting to more sophisticated methods such as contextual and emotional targeting based on the content’s tone. Jon Schulz, the CMO of Viant Technology, explains that this progression is expected to result in smarter, safer, and more measurable campaigns. The implementation of AI technologies will further enhance personalized advertising by enabling real-time optimization of ads, delivering more relevant messages, and potentially leading to higher engagement rates and improved returns on ad spend. This technological advancement marks a significant evolution in how advertisers approach viewer engagement on streaming platforms.
The Growing Role of Supply-Side Platforms (SSPs)
The rise of digital video and CTV is shifting the balance of power within the advertising ecosystem, with Supply-Side Platforms (SSPs) becoming increasingly influential. Chris Hogg from Lotame notes that SSPs are effectively bridging the gap between supply and demand, enhancing their curation offerings, and empowering agencies to adopt audience-based targeting over traditional contextual approaches. This shift is expected to gain momentum as SSPs continue to innovate and provide more detailed and scalable targeting options to advertisers. The growing prominence of SSPs underscores their critical role in facilitating more effective and efficient digital advertising strategies.
One notable trend in this space is the unification of audiences across parent company subsidiaries through data collaboration technologies. This approach allows for comprehensive audience insights, enabling advertisers to deliver more relevant and effective campaigns. As SSPs play a more prominent role in the CTV ecosystem, they are set to be instrumental in shaping the future of digital advertising. Their ability to seamlessly connect advertisers with relevant audiences through advanced targeting and data-driven strategies is expected to redefine the advertising landscape, offering new opportunities for engagement and growth.
Consolidation of Premium Content and the Rise of FAST Channels
The consolidation of top shows and the emergence of Free Ad-Supported TV (FAST) channels are key developments in the CTV market. Aaron Grote from Stirista and Julie Clark from TransUnion predict that premium CTV content will centralize into fewer, larger distribution points. This suggests the creation of a polarized ecosystem where dominant players coexist with niche providers, delivering a mix of high-demand and specialized content. The concentration of premium content into larger platforms will streamline access for viewers, offering a curated selection of top-tier programming.
FAST channels like Tubi are expected to play a crucial role in reaching consumers in dynamic ways, particularly catering to the app-based consumption habits of younger generations. These channels provide a cost-effective alternative to subscription-based services, making premium content more accessible to a broader audience. The rise of FAST channels is likely to democratize access to premium content, ensuring that high-quality programming reaches a diverse and expansive viewer base. This trend signifies a shift in how content is distributed and consumed, highlighting the potential for innovative models to thrive in the CTV space.
Addressing Data and Measurement Challenges
The landscape of Connected TV (CTV) and streaming is swiftly evolving, with significant changes anticipated by 2025. The ongoing migration of viewers from traditional linear TV to various streaming platforms is poised to dramatically reshape both the viewing experience and advertising strategies. This shift reflects broader changes in how audiences consume content, favoring on-demand streaming over scheduled broadcasts. Industry experts predict key trends that will define the future of CTV, creating an exciting and dynamic environment for both content creators and advertisers alike. Among these predictions are advancements in technology, more personalized viewing experiences through data analytics, and new advertising models that cater to targeted audiences. This transition not only offers new opportunities but also challenges that will require innovative solutions. By understanding these forward-looking predictions, stakeholders gain valuable insights into how CTV will continue to establish its place in the ever-changing entertainment landscape. Ultimately, CTV is set to carve out a significant niche, influencing the direction of television and advertising.
