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CTV is a performance channel—but do marketers know that? | Sponsored Content

This article was contributed by MNTN.

The state of connected TV (CTV) viewership seems to be one of those ever-present hot topics in the advertising industry. Streaming has become the go-to way to watch TV, and its rise has seen the old ways of TV decline. Currently, less than half of US households subscribe to traditional pay TV, while the number of CTV households has reached 113.1 million (85.3% of the population). In fact, by 2024, eMarketer expects CTV households in the US to more than double traditional pay TV households.

Viewers are also spending more time with CTV than ever before. This year, time spent with digital video is predicted to surpass linear TV for the first time—reaching 3 hours, 11 minutes— due in large part to CTV’s viewership time of 1 hour, 51 minutes.

Some marketers still see CTV as “the future”

While it’s clear that CTV is playing a growing role in the modern entertainment landscape, many marketers have not fully taken advantage of its power as an ad channel. MNTN recently coproduced a survey of more than 100 marketing professionals working in brands, technology vendors, and agencies. The goal was to investigate the current CTV landscape, and dig deep into what marketers really think about CTV. The survey revealed that while 60% of marketers have used CTV in their ad strategies in the past, 40% have not.

That’s not to say that the holdouts don’t see the advantages of CTV—the majority of marketers (nine out of 10) believe CTV advertising will be “very relevant” over the next five years. CTV is already the third-most commonly used digital marketing channel, behind paid social and search and display ads.

CTV as a performance marketing channel

The survey also revealed that the way marketers are using CTV is evolving. Where TV has been primarily used as a brand marketing and awareness tool, CTV has transformed the big screen into a performance channel. The survey found that while more than 81% of respondents are using CTV to raise awareness of their brand or product, two-thirds classify it as a performance marketing channel—a number that is likely to grow as advertisers embrace the digital nature of the channel.

Marketers may still view TV as a unique brand-building vehicle, but they’re also coming to understand the granular possibilities that CTV offers. Over half (52%) of the survey respondents currently use CTV for performance marketing with the aim of generating measurable web visits, conversions, and revenues. Just under a quarter use their CTV budget to drive in-store visits.

CTV has begun to transform the TV screen into a performance marketing channel for many advertisers, blurring the lines between brand and performance marketing. So while there are still many marketers who have not fully taken advantage of this channel—or its performance potential—yet, the majority recognize what it can offer and anticipate the larger role CTV will play in marketing strategies over the next five years. From there, the sky’s the limit.