Connected TV is revolutionising the media landscape, driving digital transformation and shifting viewer behaviour. As a look at the recent TV Upfronts shows, its impact is set to reshape advertising in its own image.

By Sarah Lewis, Global Director of CTV, ShowHeroes

Connected TV has reshaped the industry in recent years and its role in amplifying digital transformation is a long way from over. Aided by an explosion in streaming services and capabilities that now encompass live events, in 2024 the number of CTV viewers in the US overtook linear TV viewers for the first time. Forecasts are that by 2027 the next inevitable stage of the process will have happened and that more ad dollars will be spent on CTV than linear TV.

This rapid shift has been clearly on display during the annual TV Upfronts this month, where the major media players have been pitching their programming and ad opportunities to brands. CTV and streaming-based trends have been more influential than ever this year – here are some of the top ones capturing attention:

Unstoppable Shoppable

There was clear momentum building behind shoppable and interactive content and ad formats at this year’s Upfronts, with CTV leading the charge. We’ve had high-profile examples already this year, with Tubi’s recent shoppable hub featuring at Super Bowl LIX and Hulu’s red carpet programming for The Oscars. We expect more to emerge as the year progresses, especially as shoppable expands across FAST channel networks. Currently this more interactive tech leans heavily into using QR codes, but there is huge potential for deeper engagement, especially with the development of voice command ad features, where users can verbally request to find out more on a product they’ve seen in a CTV ad via their smart speaker or to ask for a product to be added directly to their shopping basket.

Streaming Water Cooler Moments

Shared live experiences are extremely powerful, bringing people together both during and after the event. The pivot of live content to streaming platforms has been led by sports – Netflix’s NFL Christmas Games and Amazon Prime Video’s 11-year global NBA deal to name just two. While still technically challenging (Netflix drew a rash of critical headlines for buffering issues and crashes during the Tyson-Paul fight in November) streamers will push deeper into live content and explore other genres beyond sports. Award ceremonies and music festivals will be high on their shopping lists. These ‘water cooler’ CTV events are powerful vehicles for advertisers to jump onboard and will no doubt have been high on the agenda for brands and streamers at the Upfronts. For all its problems, the Tyson-Paul fight generated 65 million concurrent streams and 108 million live viewers.

Contextual Content Creates Interest

It’s not just about live content opportunities for streamers but also live content alignment for advertising. Underpinned by AI-based developments, the potential is starting to emerge for streamers and advertisers to embrace dynamic and creative optimisation in their CTV campaigns, leveraging recency and relevancy in their ad creatives. Contextual intelligence, for example, can be leveraged to adapt video ads in real-time based on the most recent updates around live programming, a football tournament for example, to drive users to live streams and deliver better results for advertisers.

Drip Feeding Content

While the binge-watching model (publishing entire seasons all at once) will continue to be important for streamers and CTV audiences, many platforms are increasingly experimenting with “appointment-to-view” schedules. These build excitement for audiences and brands over a sustained period and create shared experiences around programming that binge-releases cannot match. Weekly drops of high-profile shows such as The White Lotus and The Last of Us (MAX/HBO), Andor (Disney+), and The Wheel of Time (Amazon Prime Video) help build momentum around a programme over a sustained period as well as creating more inventory for advertisers off the back of the synchronised excitement that new episodes generate.

A More Measured Approach

New and increasingly sophisticated ad measurement techniques are breaking into the CTV space and this will likely have been a key expectation of advertisers during their Upfront discussions. In particular, Attention combined with Brand Lift data is becoming the gold standard for ad measurement in CTV, two combined metrics that give a direct view on the effectiveness of a campaign and its creative execution.

Unlocking the CTV Era

The rise of Connected TV marks a significant turning point in how audiences engage with content and advertising. As the trends witnessed during the Upfronts indicate, it’s an ongoing process too; the integration of shoppable content, the growth of live streaming, and the increased use of advanced measurement techniques will further drive innovation and growth in the space. With the global installed base of Connected TVs to reach 4.2 billion units by 2030, we can expect CTV trends to be lighting up the Upfronts for years to come.