“With the incredible growth of digital TV and streaming in the past year, it’s evident that we are in the midst of the ‘connected decade,’ especially as viewership and adoption of connected TV and OTT continue to skyrocket,” said Mike Shehan, co-founder and CEO at video advertising platform SpotX when the company released its report on trends for 2021. “Record numbers are tuning in, and at this rate, cord-cutting households are on track to eclipse traditional pay TV by 2024.”
SpotX is a subsidiary of Bertelsmann’s RTL Group and is headquartered in Denver with 10 offices throughout the US, EMEA, and APAC regions.
The report says that in 2021, programmatic budgets will surge with the rise in CTV streaming, as well as advancements in addressable technology that are bringing linear inventory into digital buying workflows.
”Everyone — from media owners to advertisers to smart TV manufacturers — is focused on the potential for audience data to improve inventory values, enhance campaign performance, and deliver more relevant consumer experiences.”
A POST-CABLE ECOSYSTEM
SpotX says that the accelerated shift in consumer viewing habits will expedite the development of a post-cable ecosystem. ”New subscription offerings from legacy giants are pulling more traditional TV households into the digital future. In this fragmented and rapidly evolving marketplace, success for brands and media owners alike hinges on their ability to strategically focus their attention and investment.”
”Ad spend is following these new consumer habits and will flow into OTT and CTV faster than expected. The shift in budgets from linear to digital will kick into high gear over the next year. Now that advertisers understand how to activate data for efficient audience targeting while still achieving scale in OTT, we’ll see more advertisers recalibrate their media plans toward digital. CTV advertising in particular will grow rapidly in the US and European markets, while mobile adoption in Asia will encourage increased OTT spend.”
”Historically low prices of smart TVs are leading to faster worldwide consumer adoption.”
”With programmatic, addressable linear TV is ready for scale. There is a massive opportunity to apply digital technologies and audience data to make broadcast ads targetable and more relevant. The category is finally taking off, with more inventory available and the programmatic pipes built out, expect to see more linear TV budgets transacted digitally. For programmers, this means tapping into the growing pool of programmatic TV spend that is expected to reach USD 6.69 billion by 2021 in the US, up from USD 2.77 billion in 2019.”