CTV is not a medium, but an experience

Authored by Arun Raghav, founder of BEglobal

Connected TV (CTV) has grown beyond simply streaming videos. Now, it offers enchanting content experiences and new interactive advertising avenues. Today's audience demands high quality, personalization, and interactivity from content providers and advertisers. It's an opportunity for both to fulfill audience expectations and drive their business objectives. CTV is not just an advertising medium, but it's a platform for creating immersive, personalized, and interactive experiences for viewers. By delivering content and ads that are relevant, engaging, and seamless, CTV has set a new standard for how audiences consume entertainment and interact with brands.

With the steady growth in content investment globally, creators have successfully proven the importance of innovations in engaging audiences. The latest Kantar report says that accessing OTT videos and music content dominates top internet activities with a share of 83%, while social media activities has a share of 74%. This clearly represents that audiences are choosing streaming platforms over walled gardens for content consumption. Streaming services are continuously investing in original programming, from scripted series to documentaries and reality shows. This has resulted in a diverse and innovative landscape, with a focus on niche genres and international content.

While streaming content consumption is at an all-time high, AVOD market growth is showing advertising potential to the industry. The availability of the internet and affordability of smart devices are allowing viewers to access a wide range of content for free. In markets like APAC, which has 51% of the global internet audience, the AVOD market is forecasted to grow at a 25% CAGR to over USD 8 billion over the next five years in the region (excluding China). With this projected growth, advertisers are now going to have access to the most engaged audiences beyond walled gardens within a more controlled environment, so it becomes important for advertisers to leverage CTV as a medium and deliver ads that enhance, not interrupt.

With the best available Ad Tech, CTV ads are completely different from traditional video commercials. With advanced targeting and interactive formats, ads are no longer seen as interruptions but as valuable additions to the viewing experience. Interactive ads allow viewers to directly engage with brands. They can scan a QR code, click to learn more, or even make a purchase without leaving the platform. Now, shoppable ads are a game-changer, turning passive viewing into an active shopping experience. Innovative graphical overlays are also changing how viewers experience video ads, and this is also a value proposition for advertisers who have standard video commercials. Viewers always appreciate advertisements which are relevant, interactive, valuable, and appear as minimally disruptive, and CTV is the right medium where advertisers can connect and engage with the audiences.