More than 50% of total video ad impressions in 2023 were Connected TV (CTV), which represented an increase of 12% over last year, according to a report by Innovid. According to the company, consumers are flocking to CTV and leaving traditional linear TV behind. Advertisers understand this fact, and are boosting their spending on CTV.
The company explained that, as the 100% digital future of TV grows ever closer, CTV advertising continued its strong growth in 2023, accounting for 53% of Innovid's served video impressions in 2023, and CTV impressions increased by 12% year over year. Industry observers expect this kind of growth to continue in 2024 and beyond.
With more viewers using multiple streaming providers, the unique reach gained by adding 10 or more publishers has declined significantly since 2021, dipping to 62% in 2023 from 82% two years ago.This insight indicates that as more consumers subscribe to multiple streaming platforms, advertisers can sometimes find a shorter path to building unique reach.
Over the past two years, the average frequency delivered by Innovid’s CTV campaigns has increased by about 80% from 4.08 to 7.42. This jump is a double-edged sword. Brands want their ads viewed by consumers multiple times — but they don’t want to annoy their audience either. With the ability to measure frequency accurately and with the promise of new technology that will manage frequency at the household level, CTV can provide advertisers with more precise control of frequency — to avoid bombarding consumers with a message they have already received loud and clear.
The rise in ad frequency poses a challenge of striking the right balance between engagement and irritation. Despite this, advancements in technology offer hope for more precise targeting. According to Innovid, CTV is reshaping the advertising landscape, presenting both opportunities and hurdles for brands navigating this digital frontier.