Will CTV shift advertisers’ focus away from linear television?

As consumption habits have shifted rapidly in the last year, advertisers are left with the decision of where to allocate audio visual (AV) advertising budgets which would usually have been placed on cinema, linear TV and radio. Mediums such as cinema, where advertisers could once reach undisrupted ABC1 audiences, are currently out of bounds, and linear TV has fallen victim to measurable streaming platforms: on demand and over-the-top (OTT) services.

In December 2020 Forbes reported that Magna expected to see global ad spend rise by 7.6% in 2021 to $612bn, with digital media seeing growth of 10.4%. Linear media is also predicted to grow, but at a much more modest rate of 3.5%, with the total spend now at $42bn, less than in 2019.

With many of us at home more than ever, and with little to do for some of us but binge-watch TV, it is staggering to see linear media budgets so out of line with the exponential growth of other digital mediums. The Drum’s recent piece on 2021 predictions, forecast that 40% of households will be ‘cord cutters’ by 2023 (see CTV Audiences).

Given the stunt in growth for traditional forms of AV advertising, how will advertisers serve consumers through advanced AV mediums? Within this article I’ll be reviewing the OTT/CTV landscape and the challenges that this industry will have to overcome to stand out against the crowd.