This blog is going to have a different flavor than others on DemandSenseMedia.com as we look at the history of Connected TV (CTV).
CTV advertising has become an integral part of many advertisers’ media strategies, as it offers the ability to reach highly engaged audiences on large screens and deliver personalized, targeted ads. The ongoing advancements in technology, data capabilities, and industry collaboration continue to shape and refine the landscape of CTV advertising.
The history of CTV advertising can be traced back to the development and evolution of internet-connected television platforms. Here’s a brief overview of the key milestones in the growth of CTV advertising.
The early 2010s witnessed the rise of internet-connected Smart TVs, which allowed users to access online content and streaming services directly on their televisions. This marked the initial foundation for CTV advertising.
Streaming platforms like Netflix, Hulu, and Amazon Prime Video gained popularity, attracting a growing audience who consumed content over the internet rather than traditional broadcast or cable television. These platforms initially focused on subscription-based models without advertising, limiting early opportunities for CTV advertising.
Accordion ContentAs streaming platforms sought additional revenue streams, they started introducing ad-supported models. For instance, Hulu launched its ad-supported tier in 2010, providing an opportunity for advertisers to reach viewers on CTV devices.
Companies like Roku, Apple, and Amazon introduced streaming devices and set-top boxes that allowed consumers to connect their TVs to the internet. These devices created new avenues for streaming services and advertisers to deliver content and ads directly to televisions.
Programmatic advertising, which uses automated technologies for ad buying and targeting, began making its way into CTV in the mid-2010s. Programmatic platforms provided efficiency, data-driven targeting, and automation capabilities that transformed the CTV advertising landscape.
Over-The-Top (OTT) platforms, which deliver video content over the internet, gained traction. Platforms like YouTube, Disney+, and HBO Max expanded their offerings, attracting a vast audience to their CTV apps and opening up more opportunities for CTV advertising.
Advertisers and streaming platforms started forming partnerships and content distribution deals to monetize CTV inventory. Advertisers sought to reach audiences on popular streaming services, while platforms sought to maximize revenue through advertising.
With the availability of data on viewer behavior, preferences, and demographics, advertisers began leveraging advanced targeting capabilities in CTV advertising. Data-driven insights and measurement tools allowed advertisers to optimize their campaigns and track their impact more effectively.
Addressable TV advertising, enabled by CTV, offered the ability to deliver personalized ads to specific households or individuals based on their data profiles. This targeted approach allowed advertisers to reach relevant audiences and increase the effectiveness of their campaigns.
Industry associations, technology companies, and advertisers worked together to develop standards, guidelines, and best practices for CTV advertising. These efforts aimed to address challenges, foster transparency, and promote the growth of the CTV advertising ecosystem.