Connected TV (CTV) has become the dominant entertainment format on TV screens across America. CTV offers an on-demand touchpoint for the average person to watch their favorite shows and movies anywhere, anytime.
A little over one third of YouTube’s viewership comes from Connected TV, stamping itself as one of the main sources to watch digital content.
YouTube on CTV is becoming one of the most popular destinations–if not the most popular destination–for media consumption. It’s also one of the biggest contributors for cord-cutters slicing ties to cable and satellite subscriptions, and the cord-nevers (aka younger audiences) skipping traditional services altogether for Connected TV.
This shift in digital media consumption has skyrocketed, with Connected TV now outscaling both cable and broadcast TV. We analyze the continuous, upward trend in YouTube viewership on CTV, and why CTV advertising will be a mainstay to reach engaged audiences from cord-cutters to Gen-Z and Millennial audiences in an authentic way.
Why should YouTube on CTV matter to brands?
YouTube on CTV has become one of the most effective ways to authentically reach massive, highly-engaged audiences. YouTube ads on the TV screen are 59% more relevant than ads on linear TV or other streaming apps, allowing advertisers to contextually target viewers where they are most engaged, through their favorite content and creators living on the TV screen.
In July 2022, streaming claimed the largest piece of the pie in TV viewing overall, with YouTube ranking as the third most engaged platform via CTV. This paints a clear picture of Connected TV’s impact on television and digital content consumption.
About two-thirds of the US population are CTV users, and viewership will increase to 227.6 million by 2023, from 218.3 million in 2021.
US TV Usage and Ad Spend Snapshot (eMarketer)
52.8% of total YouTube viewers in the US (approximately 113.1 million) watched YouTube content on CTV devices. As users are increasingly consuming digital content via their Xbox, PlayStation, PC, or Smart TV, especially on the video giant that is YouTube, advertisers are getting ahead of the curve to engage viewers more authentically through the content and creators they love and watch every day.
That includes the cord-nevers; a younger audience between the ages 18-34 that are also responsible for YouTube’s largest viewership demographic. Why is this significant? Because younger audiences trust YouTube significantly more than any other demographic, and is the largest, most engaged YouTube advertising audience.
It’s adding to an already very lucrative business, with CTV advertising forecasted to reach $23.9 billion in 2023 and gaining steadily. Advertisers ultimately gain access to a growing stock of digital TV inventory, a more robust experience offering refined targeting capabilities to engage viewers, and they understand the results of an ad campaign better than traditional advertising channels.
What does CTV Advertising really solve for?
Comparing CTV to traditional TV, there are several pain points that brands encounter when advertising against media:
- Frequency and repetition
- Production
- Edits or changes
- Lack of tracking abilities
- Distracted or impatient viewers
- Lack of authenticity
To summarize these pain points in simpler terms: it costs too much, it’s a heavy lift, there’s no real conversion data, and people just aren’t watching as much traditional television today–and much less tomorrow. Also, accurate representation and the lack thereof for minorities also continues to be an ongoing challenge in advertising and media as a whole, both traditionally and in digital creative.
73% of actors appearing in video ad creative in 2022 were white, more than in 2021 or 2020, and male actors are far more common in ads than female actors.
Diversity in Ad Creative | Dec 2022
…Many groups who are marginalized in the real world remain underrepresented in media depictions – especially on cable TV, where white characters got 88 percent of screen time, despite comprising 60 percent of the population.
Nielsen: “Being Seen On Screen: Diverse Representation and Inclusion on TV” | December 2020
Comparing traditional TV with Connected TV, the word “connected” really fits the bill, allowing brands to target a specific audience based on the content they watch, the channels they follow, and their behavior across platforms.
Then, there’s the opportunity to activate ad campaigns with very low lift. Rather than time-consuming, costly productions, advertisers can incorporate their brand within a creator’s strategy by collaborating on original content, or simply sponsoring their usual programming. This prevents any pivot away from their bread and butter, as creators who tend to create sponsored content that veer away from their typical strategy can be seen as disingenuous.
Finally, accurate representation can be executed more authentically. With Connected TV, through platforms such as YouTube, brands can authentically bridge the gap between viewer and creator. By amplifying BIPOC creators, advertisers can ensure accurate representation for minority audiences and invest into the growth of a more diverse creator economy and digital advertising ecosystem.
CTV mirrors America’s racial diversity profile whereas the traditional TV audience skews white and consequently under delivers against Black, LatinX, and Asian audiences.
Magnite | CTV is for Everyone (2021)
How can a brand authentically integrate within CTV?
Brands and advertisers should look to the creators making the content that fans are flocking to on the daily. The content truly means something to the viewer, packaged in a way that is both relevant and digestible. Viewers consistently watch these creators and their content because they ultimately resonate with their interests.
What are those interests? YouTubers in particular have amassed billions of followers and tens of billions of monthly views in a multitude of verticals, from beauty and lifestyle videos to entertainment, sports, and family content – there’s always something for everyone. Again, advertisers are able to hone in on the focus and the target audience of an ad campaign based on how their product or message aligns with the content creator. It’s a low-lift activation; you can inject your brand, your products, and your message within pre-existing programming, or create custom content.
But, how can you ensure the creator you are working with really prioritizes your brand’s objectives in a safe and authentic way? 40% of viewers on YouTube are consuming BBTV content. Meaning, we can provide you with access to a massive creator network, home to some of the world’s most popular and diverse creators, to engage millions of viewers more easily and at scale. Through us and our creator network, advertisers are truly at the driver seat of their campaigns, ultimately sending the right message to the right audience every time. Your brand will hit the right notes when it comes to diversity and accurate representation, all while engaging potentially millions of viewers that are truly invested in the content, topic, or the creator they are watching. We will also bridge the gap between advertiser and creator, ensuring secure and brand-safe campaigns to protect the integrity of the brand and the content, respectively.
… 69% of consumers are more likely to engage with contextually relevant ads.
Double Verify | The Resurgence of Contextual Advertising (2020)
The ability to contextually target your ad campaigns with creators and content that fans love equates to a more positive experience, ultimately earning better results. However, a challenge advertisers still face is the lack of visibility into the performance of their ad campaigns–is it driving real results? Oftentimes, advertisers are left in the dark during the process. By working with us and our BBTV creators, you will gain refined tracking, insights and contextual targeting capabilities to truly understand your campaign’s success. Our tech, combined with human-verified campaign capabilities, offers significant wins that are both low-lift and cost efficient, including robust targeting to analyze your ad campaign’s conversion data, and full transparency in tracking, reporting, and ad delivery.
Between Reserve Media, Channel Sponsorships, and Branded Entertainment, the choice is yours when it comes to promoting your brand and elevating its digital presence in front of people that really care. Connect with our Ad Sales team today to learn more about Connected TV, and how BBTV’s digital ad solutions can amplify your brand through the fastest growing viewing channel in the world.
