The Rise and Rise of CTV
Connected TV (CTV) has transformed the television landscape in the UK, offering viewers a vast array of content on demand, breaking free from the traditional constraints of linear broadcasting. CTV players like Roku, Rakuten, and the ad-supported models of Netflix and Disney+ have revolutionised the way we consume television, and their popularity is only increasing.
The adoption of CTV devices has skyrocketed in the UK, with over 66% of households now owning at least one. This widespread adoption has led to a surge in CTV viewing, with CTV accounting for an impressive 28% of all TV viewing by UK adults. For the younger demographic of 16-34-year-olds, this figure jumps to an even higher 55%, highlighting the significant shift towards CTV among younger generations.
Ad-supported CTV models have emerged as a game-changer, offering viewers a free or low-cost alternative to traditional subscription services. This has further fueled the growth of CTV, as viewers are drawn to the flexibility and affordability of ad-supported platforms. Disney+ and Netflix have been at the forefront of the ad-supported CTV revolution, offering a compelling mix of premium content and targeted advertising. Disney+, in particular, has seen remarkable success with its ad-supported tier, attracting millions of subscribers since its launch.
Linear TV's Undying Influence
Despite the surge in CTV adoption, linear TV still holds immense power, reach, and scale. It remains the foundation of any TV advertising campaign for most brands, boasting the ability to reach a vast and diverse audience simultaneously. Linear TV's ability to create shared experiences and generate mass awareness remains unmatched in the current media landscape.
The growth of CTV should not be viewed as a threat to linear TV but rather as a complementary force, at least for now. As more and more households transition towards using CTV products, this will more than make up for the eventual slow decline of linear TV. CTV offers a targeted and personalised viewing experience, while linear TV provides the power of mass reach and shared experiences.
CTV and linear TV can coexist and thrive together, each playing a distinct role in the evolving media landscape. Brands can effectively leverage both channels to maximise their reach, engagement, and overall marketing effectiveness. Linear TV's mass reach can be complemented by CTV's targeted and personalised approach, creating a powerful synergistic strategy
The Advertising Opportunity
The rise of CTV presents a golden opportunity for advertisers to reach highly engaged audiences in a premium environment. CTV advertising offers several advantages over traditional linear TV advertising, including:
Targeted Reach: CTV advertising allows advertisers to target specific audiences based on demographics, interests, and viewing behavior, ensuring that their ads are seen by the right people.
Measurable Results: CTV advertising provides advertisers with granular data on ad performance, enabling them to track the effectiveness of their campaigns and optimise their strategies.
Interactive Experiences: CTV advertising can be interactive, allowing viewers to engage with ads in new and innovative ways.
The Future of Television
The future of television in the UK is undoubtedly connected, with CTV poised to play an increasingly dominant role. As consumer preferences shift towards personalised and on-demand viewing experiences, CTV is rapidly gaining traction, offering a vast array of content and catering to diverse viewing habits.
CTV's popularity is evident in the rising viewership figures with all TV viewing by UK adults projected to reach 35% by 2026. For the younger demographics this will be much higher. These statistics underscore the growing demand for CTV and its appeal to a wider audience, particularly younger generations.
Despite the surge in CTV adoption, linear TV still holds a significant position in the UK media landscape. It remains a powerful tool for reaching a vast and diverse audience simultaneously, generating mass awareness and creating shared experiences. However, linear TV's viewership is slowly declining, with CTV steadily gaining ground.
By 2026, CTV is expected to overtake linear TV in terms of total viewership, marking a significant shift in the way UK audiences consume television content. This transition will also be reflected in advertising revenue, with CTV projected to generate more than £2.31 billion by 2026, surpassing linear TV's advertising income.
Linear TV still offers the power of live events, shared experiences, and a sense of community. It remains a popular choice for watching news, sports, and major cultural events. However, as CTV continues to evolve and offer more live and interactive content, linear TV's dominance in this area may diminish.
Despite the eventual decline of linear TV, CTV is not destined to replace it entirely. Both channels will continue to coexist and play distinct roles in the evolving media landscape. Brands can effectively leverage both linear TV's mass reach and CTV's targeted approach to create a comprehensive marketing strategy that resonates with diverse audiences.
The future of television in the UK is one of convergence, where linear TV and CTV complement each other, each offering its unique strengths. As CTV continues to grow in popularity and viewership, it will eventually overtake linear TV in terms of both viewership and advertising revenue. However, linear TV will continue to hold a place in the media landscape, offering its unique value proposition and catering to specific viewing preferences.
Brands and agencies that can effectively navigate this dynamic landscape and embrace the power of both linear TV and CTV will be well-positioned to succeed in the future of television. By understanding the evolving consumer preferences and utilising the strengths of each channel, brands can create engaging and effective marketing campaigns that reach their target audiences and achieve their desired outcomes.