Originally published in MarTech Series on March 30, 2023
By: Matt Wasserlauf, Co-Founder and CEO of Blockboard
There has never been a more exciting time for digital advertising than right now.
The number of Connected TV (CTV) devices in American homes has skyrocketed in the last few years, and that number continues to steadily rise with almost 90% of Americans currently owning at least one CTV device. As the market is projected to reach nearly $947B by 2027, there is tremendous potential and opportunity for advertisers heading into the new year:
Here are some predictions for the rest of 2023:
1. Programmatic innovation will drive the programmatic revolution
There are currently more than 1.1 billion CTV devices in use worldwide. CTV is no longer an afterthought and is now a critical and leading channel within the programmatic advertising landscape with its ability to directly reach consumers where they live and view content.
As broadcasters and media companies start to invest more in their streaming offerings, marketers will inevitably be forced to shift their budgets from linear to streaming and CTV advertising.
To take advantage of this growth and scale, CTV programmatic platforms will need to focus on getting rid of wasted ad spend, which has been the industry norm for years. The technology to vet every ad impression and pinpoint campaigns to specific targets and regions will become crucial. This will usher in the era of programmatic 3.0 where platforms are built on the web3 principles of transparency, authenticity, security and accountability.
2. Acquisitions galore
Doesn’t it feel like every media company now has its own streaming service and some digital component to outcompete its competitors? The truth is, all these services won’t be able to survive on their own and consolidation across major media and technology will inevitably escalate in 2023. With the technology powers outspending the linear broadcast networks, we have already seen NFL make the shift to streaming, with Thursday night football exclusively available on Amazon Prime.
Among the top 100 TV telecasts in 2022, NFL games accounted for 43% – making it the most-watched category, as well as the biggest rating driver and revenue stream on TV. As the NFL continues to shift toward streaming, will continue to destroy significant broadcast TV value and will signal giants like Amazon, Netflix, Google and Apple to examine these acquisition opportunities and propel consolidation opportunities.
3. The big “R” word to focus on is RESULTS, not RECESSION
While fears about a recession are certainly warranted, it won’t be as scary as initially reported. All signs may point towards a recession, and as in any recession, advertising tends to be the first budget cut. While this will be true again in 2023, it will ultimately be short-lived, rebounding by the second half of the year.
So let’s not fear a recession because a recession will ultimately drive innovation.
What brands and advertisers should instead focus on is refreshing their strategies. With CTV becoming the fastest-growing advertising platform, linear broadcast TV will no longer be the gold standard and priority moving forward. Unlike CTV, linear TV is far less accountable than online media or social media. Digital alternatives provide attribution and a direct correlation to sales and results, which is what’s needed most in a recession.