CTV ad market is still on the rise as brands invest more in digital and programmatic advertising – Data & Programmatic news in a nutshell

We have compiled the most important news from the data, online advertising and programmatic market from 1st to 23rd November 2022. Check out what happened in the last two weeks on the data & programmatic market.

CTV ad market will more than double by the end of 2026

The US connected TV ad market is holding strong with its double-digit growth every year since 2017. Next year, CTV ad spend will hit $26.92 B and eventually reach $43.59 B in 2026.

With more money put into CTV campaigns, the share of CTV ads in total media ad spending will continue to grow, although it’s expected to account for 9,1% in 2026.

Digital advertising will account for 71.8% of US media ad spend this year, up 16 percentage points from 2019

71.8% of total US ad spend will be on digital advertising this year. Advertisers will fork out $248.72 B on digital ads, 12,8% more than last year, per eMarketer’s latest forecast. Digital spend is expected to reach $385.47 billion and make up 80.9% of total media ad spend in 2026.

The share of digital spend in total media ad spend is continuously growing, although ad-tech trends and innovations have caused the shift within the category. What’s trending in the advertiser’s ad budgets are video ads, connected TV, and search. We’ll see a downturn in the growth of spend on mobile and display.

The Android Privacy Sandbox – Alphabet’s Mobile ID-based Solution – Will Enter Beta In Early 2023

Google announced that mobile devices with Android 13 will get the Android Privacy Sandbox beta version at the beginning of 2023. Android Privacy Sandbox is an ID-based solution for Google to offer targeting tools to marketers amid third-party cookie regulations.

Over ⅓ of the marketers see identity as a more urgent priority in their strategy for the cookieless future, per Lotame’s latest global study. Alphabet’s cookieless solutions are popular among marketers, with Google Topic being the most used and tested identity solution this year. Once the Android Privacy Sandbox beta starts, marketers will be able to test its APIs, such as attribution reporting, FLEDGE, Topics, and SDK Runtime, as post-cookie targeting alternatives.

Larger brands redistribute their ad budgets towards programmatic advertising

Amid inflation, CMOs strive to increase the flexibility of marketing solutions. Large brands, such as Procter & Gamble and AirBnB, reduce their ad spend but invest more in digital and programmatic advertising. 

P&G chose programmatic because of the more specified metrics that let advertisers see where their dollars are going and what is the actual performance. The brand focuses on reach metrics to calculate the required media exposure. 

Airbnb uses programmatic campaigns to benefit from its flexibility. Lately, its marketing has shifted from traditional search to programmatic brand advertising. Brand marketing rate of return has been so incremental that Airbnb is ready to cut its ad spend without jeopardizing the business growth.

Netflix rolled out a subscription plan with ads

Basic with Ads is Netflix’s newest plan, available at a lower price, with commercials playing for up to five minutes an hour. The ad system was created in cooperation with Microsoft’s Xandr and in the USA, among the advertisers there are brands such as GM, L’Oreal, McDonald’s, LVMH, Subway, Target, Heinz i Carnival Cruises.

According to eMarketer’s forecast, Netflix will see US ad revenues of $830 million in 2023, and $1.02 billion in 2024. Although it’s below the expected ad revenue of Hulu or Disney+, the platform will easily attract the advertisers. It reaches half of the Americans, has built out its data measurement and ad service capacity, and offers content on kid’s channels ad-free.