Why Advertisers Need to Prioritize CTV Advertising: Value, Strategies, and the Path to Household Audience Engagement

Introduction: Why Advertisers Must Reassess CTV Advertising?
As global streaming media user scale expands, Connected TV (CTV) has evolved from a "supplementary channel" to a core battlefield in brand strategy. Per Statista, CTV advertising revenue has grown 20% annually over five years and is expected to exceed $38 billion by 2027—driven by household scenario digitalization and the integration of brand building and performance.

I. Why Must Advertisers Focus on CTV Advertising?
1. User Behavior Shift: Revival of the Living Room Economy
- Explosive Scale: Statista forecasts 1.72 billion global CTV households by 2025, with North America penetration over 89% and Latin America at 59%.
- Growing Attention: eMarketer data shows U.S. CTV users spent 123 minutes daily in 2024 (surpassing computers/tablets), with year-on-year growth outpacing mobile.
- Cross-Generational Reach: CTV covers entire families (parents as decision-makers, children as influencers). Comscore notes U.S. Gen Z households consume 154.9 monthly streaming hours—exceeding the 132.2-hour average.
2. Budget Allocation Reconstruction: From "Brand Exposure" to "Performance-Driven"
Traditional TV is declining; eMarketer predicts U.S. CTV ad spending ($46.89 billion) will surpass traditional TV ($45.11 billion) by 2028. Advertiser feedback confirms:
- Cost Efficiency: IAS’s "Future of CTV Investment" report shows CTV drives brand awareness (43%) and precise targeting (56%).
- Budget Flexibility: Amazon integrates CTV with sellers via self-service tools like Amazon Sponsored TV, lowering entry barriers for SMEs.

II. The Unique Value of CTV Advertising: Brand-Performance Integration
- Immersive Brand Recall: Full-screen, non-skippable formats enhance impressions; alignment with high-attention content (dramas, sports) boosts emotional resonance.
- Measurable Performance: IP targeting and cross-device ID matching track exposure-to-conversion paths; AI optimizes creatives in real time to lift click-through rates.
- Interactive Shopping Loop: Scan-to-purchase and remote one-click ordering drive higher conversion than traditional videos. LG Ad Solutions reports 93% of CTV viewers use other devices simultaneously (71% on mobile).

III. Core Application Scenarios and Ad Formats
1. Scenario-Based Targeting
Align ad strategies with household rhythms—specific scenarios/strategies can be supplemented with data or case studies.
2. Innovative Ad Formats
Innovid’s H1 2024 data: Interactive CTV ads extend user stay by 76 seconds vs. pre-roll, with engagement 4.5x mobile and 3.8x desktop. Key formats include:
- Shoppable Carousels: Remote-controlled product browsing and direct ordering.
- Brand Interactive Q&A: Question-answering for coupons.
- Dynamic Scenario Ads: Real-time weather/location-based product pushes (e.g., rain gear on rainy days).

IV. Efficient Targeting Strategies and Key Considerations
- Data-Driven Targeting: Integrate CRM with CTV behavior tags; use anonymous matching to meet GDPR/CCPA requirements.
- Cross-Channel Synergy: CTV+mobile exposure boosts ARPU; manage frequency to avoid over-marketing.
- Creative Optimization: 15-second ads for completion rate, 30-second ads for brand recall; adopt native, scenario-customized inserts.
- Performance Measurement: Multi-funnel indicators—upper (brand lift), middle (QR scan/interaction rates), lower (CPA/ROAS via MMP tools).

Conclusion: CTV – The Ultimate Gateway for Brands to Embrace Household Scenarios
CTV is not a traditional TV replica but a new entity combining immersion, precision, and convenience. Poseidon believes success lies in:
1. Strategy: Integrate CTV into omni-channel funnels, synergizing with mobile/search.
2. Execution: Prioritize testable, interactive formats (e.g., scan-to-shop).
3. Technology: Build cross-screen attribution and privacy-compliant data frameworks.
The future is here: When consumers order via remote on the sofa, is your brand on screen? Poseidon will continue providing insights to help brands leverage CTV growth.