Over the last few years, and especially the past two, the term "Connected TV" (CTV) has become increasingly prominent in the media landscape. This is no surprise given the important rise in its adoption as consumers gradually shift from traditional cable TV to streaming platforms. In Belgium, 76% of the population now owns a CTV device. As a result, advertisers are adjusting their strategies, with many brands heavily investing in CTV ads. Publishers are following the trend, adapting their offerings and introducing new CTV solutions to meet this growing demand. Among various types of video-on-demand (VOD), BVOD (Broadcaster Video on Demand) is seeing the most notable growth, highlighting the importance for advertisers to embrace this shift and start incorporating CTV into their strategies.
Why is CTV so appealing to advertisers?
One of the key advantages of advertising on CTV is the consumer's trust in brands they see on television compared to those on social media. Appearing on the big screen gives a brand a sense of premium quality, which is highly appealing to audiences. Moreover, the content consumed on CTV platforms, such as movies and series, is typically longer-form, meaning viewers are in a more relaxed, entertainment-driven state of mind. This leads to a lean-back viewing experience where attention rates are higher than on platforms like YouTube, where users are often watching shorter videos or music clips.
Another crucial aspect of CTV is co-viewing. Unlike on YouTube, where content is frequently watched alone, CTV is often enjoyed by multiple people at once, such as families or groups of friends. This creates a more shared viewing experience, which in turn provides advertisers with greater impression value as their ads reach more people at once.
Additionally, ad acceptance is significantly higher on CTV. Commercial breaks are less frequent and less intrusive, and viewers are more likely to accept ads when they know it allows them to watch their favourite movies or shows for free. The shorter duration of ad breaks also contributes to this acceptance, and when people watch together, there’s a natural inclination to be more accepting of ads.
Finally, CTV offers advanced targeting and personalization capabilities. Advertisers can use these features to deliver highly relevant and tailored ads to specific audiences, enhancing the overall viewing experience and making their campaigns more effective.
The rise of Connected TV is reshaping the television landscape
Driven by consumers' preference for on-demand, flexible viewing experiences, Connected TV has proven to be a compelling platform for advertisers. Innovation continues to grow on this topic and it's clear that this trend will only strengthen in the coming years. In Belgium, this market is currently experiencing a surge in popularity and The number of users in the BVOD market is expected to reach 8M users in Belgium by 2027 and the user penetration rate is projected to increase to 67.6% by 2027.
Given the current economic climate, marketing budgets are frequently being reduced, with TV often being the first channel to face cuts due to its high cost. However, TV remains a crucial medium for brand building, which is essential for driving long-term business value. Advertising on Connected TV offers advertisers the chance to maintain a presence on the big screen while providing greater budget flexibility and often lower costs. It also allows for less marketing waste by targeting a relevant audience.
For advertisers with the budget, CTV should run alongside traditional linear TV, which remains the most widely used medium. However, CTV's popularity is rapidly increasing, particularly among Belgians under 35, who spend an average of 3 hours per day on connected TV. In 2023, almost 80% of Belgian households owned a connected television, and this figure is expected to rise to 85% by 2025.
Brands looking to stay ahead should embrace the shift to CTV now, as its potential for effective, personalised advertising is only set to expand further.
Astrid Mérenne
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