Welcome back to Media Trends Monday, a series where we examine trends we’re seeing in today’s media landscape and how they may affect your business and marketing efforts.
This week’s key points:
- The pandemic spurred on growth in OTT and CTV
- OTT and CTV will continue to grow throughout these next coming years
- CCF can help put media opportunities on these growing platforms to work for your brand
The terms OTT and CTV have been thrown around like a dodgeball in recent years. But what exactly is OTT and CTV? OTT (short for Over-The-Top) refers to any streaming service, like Netflix, Hulu, or Disney+. CTV (short for Connected Television) involves streaming content displayed through a TV. Smart TVs, streaming devices like roku, game consoles, and set top boxes can all be considered CTV when there is streaming content being viewed.
Trends we’re seeing in OTT and CTV
Time spent on OTT and CTV increased 34% to around 1.25 hours a day in 2020, and according to eMarketer that number is projected to grow to 2 hours by 2022.
The pandemic has sped up adoption of online streaming, as we’ve seen a spike in time spent with OTT and CTV. In fact, according to Comscore, 20% of US households cut the cord year over year, and that has accelerated to 35% in 2020 and will continue to grow in the coming years. And if that wasn’t convincing enough, we have even more data to throw at you. Comscore says that in June 2021, 8.3 billion total hours were spent on streaming services, a 22% increase from January 2020’s 6.8 billion total hours. The share of
OTT space grew in totality, and has also become more fragmented, with the addition and growing popularity of services outside of the big five (Netflix, Youtube, Amazon Video, Hulu, Disney+). And on top of all that, we’ve seen a large uptick in services that support ads, a category that has grown faster than non-ad supported services, likely because it is cheaper.
What does it all mean?
Did you catch all that? Here’s why it matters. According to Nielsen, 30% of adults 18-34 years old are likely to be influenced to purchase a product that is placed within content on a streaming video service, followed closely by 35-49 year olds. 17% of 50+ year olds are likely to be influenced as well. So how can your brand be a part of this growth?
We recognize that OTT and CTV trend lines are overwhelmingly positive and will continue to grow over time. Considering that ad-supported services are growing at a faster rate than non-ad supported services, there is an opportunity to have a presence in that space. When it comes to choosing which services and platforms, CCF knows which platforms resonate with users to mitigate “subscription-fatigue.” And even with non-ad supported platforms, there are native ways to partner with shows and movies to grow an audience. We promise to integrate market forecasts and consumption data into our channel strategy to maximize spend, while leaning into active moments of engagement. You know your business, we know your audience. Let’s talk.
Thanks for reading, and we’ll see you for the next installment of Media Trends Monday! Have a great week.