Global Connected TV Media Forecast Trends 2024

 

                                                                               Connected TV Apps-based Viewing

Global ad spend is on course pass $1 trillion ($788.6 billion) for the first time in 2024, following the growth of 4.4 per cent this year and a further 8.2 per cent in 2024. Retail media and connected TV (CTV) a fifth of all spend, will drive growth into 2024 – are poised to see significant investment from brands over the coming 18 months. With the rise of CTV, we are seeing once again the value advertisers place in leveraging first party data to target the right message to the right person at the right time.

Audience Adoption

This transition toward CTV points to a broader shift in consumer behavior, as traditional TV consumption patterns are disrupted by the rise of on-demand content and streaming services. The value chain of smart TV home screen app prominence is likely to result in the popularity order ranking based on usage as global app-based TV viewing surpasses set-top boxes will increase investment. CTV ad revenues will experience an annual compounded growth rate of 10.4% between 2023 and 2028. 

Growth & Investment

Connected TV (CTV) is also projected to grow well this year (+11.4 per cent) and next year (+12.1 per cent), reaching a total of $33bn – only 3.2 per cent of all spend but 16.2 per cent of premium video spend (CTV and linear TV combined). CTV media owners are mostly competing for existing TV budgets rather than winning new share of spend from digital channels like social, or accessing new budgets such as retail media could increase CTV growth fivefold, with the shift to free-ad supported streaming (FAST) channels.

Highest Performance

This dramatic rise in CTV advertising is significantly altering advertising strategies and budgets as consumers flock to streaming platforms, advertisers are following suit, to reach an engaged, targetable audience.

The Middle East is among the smallest regions (just 0.7 per cent of global spend) but is anticipated to be the fastest-growing over the forecast period, with spend up 10 per cent in 2023 and 6.2 per cent in 2024, by when the ad market will be worth $6.9bn.

Spend in South Asia is also growing rapidly (+8.9 per cent this year, +12.1 per cent next year), buoyed by a strong Indian market. Ad spend in India is forecast to grow by double digits over the next 18 months to reach a total of $13.7bn in 2024 – 1.3 per cent of global spend.

Southeast Asia is forecast to grow 4.8 per cent this year and 4.6 per cent in 2024, with Singapore (+9.1 per cent in 2023 and +5.0 per cent in 2024) and Indonesia (+5.1 per cent and +7.8 per cent, respectively) growing faster than the wider region and consequently gaining share. Growth will be recorded across all major markets in the region, including Thailand (+4.5 per cent in 2023), Malaysia (+3.4 per cent) and the Philippines (+3.2 per cent).

The continued adoption of CTV signals a pivotal evolution in media consumption habits, with viewers favoring its flexibility, variety, and personalized ads. Advertisers should take heed of this shift and adjust their strategies to align with the increasing relevance of these platforms.

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