CTV’s conundrum: A quarter (25.3%) of US adults’ daily digital media time is spent on connected TV (CTV), but marketers are dedicating less than 10% of their digital ad budgets to it, according to our forecast. “That’s going to have to change because CTV is the future,” Cramer-Flood said.
- CTV’s imbalance may be due to several factors, including a lack of inventory and pricing issues.
- Compared with Meta, which has made the advertiser experience easy and seamless, CTV has been slow to integrate ad tech that would ease adoption.
Sound off: Despite holding more than 11% of US adults’ daily media time, digital audio and radio will only attract a combined 4.9% of US advertising dollars this year, per our forecast.
- “Radio is an old medium,” Cramer-Floor said. “It’s very hard to track your return on investment. And digital audio is complicated by the fact that the leading platforms like Spotify are more interested in subscriber fee-based subscriptions than ad revenue, so they want you to pay to avoid ads.”
- Podcasters are particularly attentive audio listeners, and can be seen as an untapped market for advertisement investment.
“We’re not saying this is a call to action. We’re not saying [advertisers are] doing anything wrong,” Cramer-Flood said. “But the previous observation about how big the gap has become between digital media and traditional media and how big this gap is does raise questions.”
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