Once deemed as a mere “idiot box,” the television has morphed into a sleek, smart companion, breathing new life into the advertising world. As digital fatigue sets in and attention spans shrink to the size of a TikTok video, the humble TV is staging a comeback, captivating audiences through engaging content & personalized ads. With a projected $32.7 billion in ad spend by 2025, CTV is poised to be an indispensable medium in the year to come.
Key Trends for 2025:
- OEM-AdTech Partnerships: OEMs will be teaming up with ad tech platforms to push programmatic advertising, delivering next-level precision.
- A new realm of interaction: AI-powered dynamic ad insertion will boost hyper-targeted, personalized ads, creating a new realm of interaction.Â
- Shoppable ads: With smart recommendations and interactive ads, 1/3 viewers will be swiping their way to purchases straight from CTVs.
- CTV Amplifying Mobile: Cross-device targeting will seamlessly sync brand messaging, ensuring a consistent experience across screens.
What’s on the horizon?
The potential of CTV advertising is just beginning to be realized. As ad tech continues to evolve and the digital advertising landscape shifts, new opportunities are emerging. From strategic collaborations between OEMs and ad tech firms to the creation of new operating systems that challenge walled gardens, the CTV ad industry is on track for substantial growth in 2025.
Here are some key trends to watch for in 2025 as this dynamic landscape continues to unfold:
- OEM’s collaboration with the AdTech Ecosystem: OEMs are already collaborating with major ad tech platforms like Google, The Trade Desk, and Xandr as well as advanced supply-side platforms to incorporate programmatic advertising and enhance demand & ad inventory management respectively. OEMs will deepen their integration with ad tech ecosystems to create more sophisticated programmatic advertising solutions, leveraging real-time bidding and dynamic content placement to optimize ad revenue and viewer engagement.
- Dynamic Ad Insertion (DAI) Innovation: SSPs will play a key role in improving Dynamic Ad Insertion (DAI), enabling real-time ad customization based on user data and viewing context (e.g., time of day, geographic location, content being viewed), advanced ad formats like interactive video and shoppable ads, and seamless integration with other ad technologies. DAI is expected to grow more with evolving AI and machine learning, delivering hyper-targeted ads that drive higher engagement and conversions.
- Venue Based CTV ads:Â Advertisers stand to benefit immensely from venue-based CTV. By harnessing technologies like real-time location data, AI, and machine learning, advertisers can deliver hyper-targeted, personalized ads to specific audiences within venues. This will lead to higher engagement, increased conversions, and improved brand experiences.Â
- Streaming to shopping: With personalized recommendations and interactive ad formats, viewers will easily discover and buy products. As consumer behavior shifts, 1 in 3 viewers are already making purchases through CTVs after seeing an ad. Additionally, interactive CTV campaigns achieve engagement rates 4.6x higher than mobile video and 10.3x higher than desktop video, showcasing their power in driving consumer action. (Source: The CTV Advertising Insights Report 2024)
- CTV is supercharging mobile engagement: Leveraging cross-device targeting, advertisers can deliver consistent messaging across multiple screens, creating a cohesive brand experience. This seamless integration between CTV and mobile allows for more targeted and effective campaigns, driving increased brand awareness, app downloads, and website traffic. As the lines between these two platforms continue to blur, advertisers can harness the power of CTV to amplify their mobile marketing efforts and achieve greater success.
As technology continues to advance, the future of CTV looks promising. With increased personalization, interactive experiences, and advanced measurement tools, CTV is poised to become an even more powerful medium for advertisers. By embracing these trends and partnering with Lemma, you can harness the full power of this transformative platform and set your brand up for future success.
