Programmatic CTV (Connected TV) advertising has been on the rise in recent years, and as we enter 2023, this trend is only set to continue. With the growth of cord-cutting, the increasing popularity of streaming services, and the growing demand for targeted advertising, programmatic CTV is becoming an increasingly important channel for brands and advertisers looking to reach their target audience. In this article, we will examine the key trends that are shaping the programmatic CTV landscape in 2023, and what advertisers can expect in the coming year.
- Continued Growth in Ad Spending: As consumers continue to shift their viewing habits towards Connected TV, advertisers are following suit, with ad spending on programmatic CTV expected to reach $18.17 billion by 2023, according to eMarketer. This represents a significant increase from the $13.38 billion spent in 2022, and suggests that programmatic CTV is becoming an increasingly important channel for brands looking to reach their target audience.
- Advanced Targeting Capabilities: In 2023, programmatic CTV advertisers will continue to take advantage of the advanced targeting capabilities that are becoming available. This includes demographic and interest-based targeting, as well as the use of first-party data to reach the desired audience more effectively. With the growing demand for targeted advertising, these advanced targeting capabilities will become increasingly important for advertisers looking to maximize the impact of their CTV campaigns.
- Increased Investment in OTT: Over-the-top (OTT) advertising is also expected to continue to grow in popularity in 2023, as more and more brands invest in this channel to reach their target audience. With the rise of streaming services and the increasing number of viewers turning to CTV for their entertainment needs, OTT is becoming an increasingly attractive option for advertisers. As such, we can expect to see more investment in this channel in the coming year.
- Emergence of New Players: In 2023, we can also expect to see the emergence of new players in the programmatic CTV space, as the demand for this channel continues to grow. With the increasing number of streaming services and the growing demand for targeted advertising, there will be opportunities for new entrants to carve out a niche in the market and establish themselves as players to watch.
- Increased Focus on Measurement and ROI: As programmatic CTV continues to grow, advertisers will increasingly focus on measuring the ROI of their CTV campaigns. This will involve leveraging the latest measurement tools and technologies, as well as developing new metrics and KPIs to evaluate the effectiveness of their campaigns. By focusing on measurement and ROI, advertisers will be better positioned to optimize their programmatic CTV strategies and drive greater returns from their advertising investments.
In conclusion, programmatic CTV is a trend that is here to stay, and as we enter 2023, it is only set to grow. With the continued growth in ad spending, the advanced targeting capabilities that are becoming available, and the increasing investment in OTT, 2023 is shaping up to be a big year for programmatic CTV. Brands and advertisers looking to take advantage of these trends should start considering how they can incorporate programmatic CTV into their advertising strategies, and what they can do to stay ahead of the curve. The Trade Desk is well positioned to help advertisers navigate these trends and maximize the impact of their programmatic CTV campaigns in 2023 and beyond.