Ad inventory has grown for connected TV.
Connected TV ad inventory has opened up over the past year. For example, video ad platform Innovid, saw connected TV advertisements jump from 13% to 27%. Comcast-owned video ad server, FreeWheel had similar findings. FreeWheel served 42% of its ad impressions through connected TVs.
Platforms that receive traffic from mobile devices can benefit from the growth. For example, YouTube, most of their content is being watched on mobile devices. However, there is an indication that YouTube is being watched on TV screens as well.
With that being said, as inventory supply is on the rise, connected TV CPMs should decline. According to eMarketer, CPMs for in-stream ads on connected TV ranged from $19.84 to $28.33 between Q4 of 2017 and Q4 of 2018. With CPMs declining, this will certainly affect where and how ad dollars get spent.
Video accounts for about half of programmatic spend in the US. However, as it the cost declines, we can expect the number of advertisers who advertise through connected TV devices to jump.
While video programmatic spend is up, video dollars are also being allocated to mobile devices over desktops. Mobile share of programmatic video ad spend estimated to peak in 2020. However, it is also expected that by 2021, mobile shares will dip as ad buyers invest in other areas such as connected TV.
Similar to inventory, the number of consumers who watch content on a connected TV continues to grow. With the growth, advertisers have the ability to target their unique audience across devices as well as whenever they’re watching. Having the freedom to watch what you want, when you want has become appealing across demographics. It is unfortunate for the TV industry, but excellent for consumers wallets!