5 trends that will dictate the CTV landscape in 2024

TV has been a mainstay in both consumers and advertisers’ routines for decades. For the former, it’s a source of entertainment that holds center stage in the modern home. For the latter, it’s a powerful asset in the pursuit of brand building and long-term loyalty.

The emergence of connected TV (CTV) has opened up new opportunities on both sides of the coin. Smart TV penetration hit 73% in 2023, up from just 11% in 2014. And advertisers have been quick to tap into this trend, with GroupM predicting that CTV ad revenue will grow 13.8% in 2024, following a 10.9% bump last year.

Samsung Ads has identified five trends that will shape the CTV landscape in 2024.

1. Broadcasters still prime-time players

Subscription video-on-demand (SVOD), advertising video-on-demand (AVOD), free ad-supported streaming TV (FAST) - with the number of streaming platforms exploding, viewers are spoiled for choice when searching for content.

But amidst this fragmentation, broadcasters have kept their seat at the table. Samsung Ads’ latest report, Anatomy of a Streamer, documents viewing behaviors across Samsung Smart TVs. It identified that broadcasters’ peak consumption occurs at prime-time viewing hours, between 8-10pm. This accolade, which is shared with SVOD, is thanks to both linear and broadcaster video-on-demand (BVOD) services.

Daily and weekly schedules are also some of the key drivers behind content consumption, with AVOD tending to peak at 6-8pm. Whilst broadcasters are certainly enjoying a strong position in the prime time slot, there’s room for all players in this streaming match, provided they stay true to the recipe that fueled initial success - seamless viewing experiences and premium programming.

2. Going beyond the screen

With broadcasters’ position still strong, linear advertising slots aren’t going anywhere - but that doesn’t mean that advertisers should be putting all their eggs in one basket.

CTV’s rise to the fore has been a preface to the sudden prominence of interactive and shoppable ads. These new formats are redefining the viewing experience, allowing consumers to engage beyond the traditional experiences they’re familiar with. Polls, games and QR codes that facilitate in-ad purchases that take place on the biggest screen in the home will blend entertainment and commerce into one proposition, creating a truly immersive FAST advertising experience.

3. To binge, or not to binge?

Netflix’s shift to an on-demand model in 2007 opened the doors to extensive content libraries. This unrestricted access saw consumers watch hour-after-hour of television. However, binge watching has evolved in-line with viewer expectations.

Samsung Ads’ data indicates that staggered sessions have become a part of the status quo, living side-by-side with traditional bingeing. The average Samsung streamer now enjoys eight streaming sessions per week, with each session lasting 122 minutes.

One of the key drivers behind this behavioral shift is the abundance of content available. With streaming platforms now a dime-a-dozen, subscription fatigue and discovery paralysis have become the new norm. A previous Samsung Ads report, Is TV Just TV?, found that 65% of viewers become impatient and frustrated shortly after failing to find something to watch. This has also presented new challenges for advertisers, with the proliferation of channels making it difficult to reach high-value audiences.

4. AI is not a short-lived fad

It would be impossible to write a 2024 predictions piece without sparing a thought for AI. The buzzword on everyone’s lips is making its mark on all walks of life, and CTV is no exception.

But that doesn’t mean it has sprung from nowhere. Machine learning has been applied within the CTV sphere for a number of years, elevating the user experience (UX) whilst simultaneously driving discoverability. Case-in-point, Samsung Smart TVs’ Universal Guide leverages viewing history to make informed content recommendations.

This feature, situated on the home screen, helps resolve the aforementioned decision paralysis by spotlighting the latest apps, services, shows and movies that viewers might like. And this greater emphasis on personalization doesn’t just improve the viewing experience. Content providers can reach audiences that were previously confined in an echo chamber.

5. Privacy makes the world go round

In 2024, a pivotal trend in CTV will be the elevation of user privacy, creating unprecedented opportunities for brands and advertisers who will need more support than ever to reach their audiences in safe and innovative ways.

Such partnerships like Samsung Ads’ with OneTrust to roll-out its Consent Management Platform (CMP) set the tone for the year, showcasing a proactive approach to privacy by empowering users with consent and control over their data. This trend not only aligns with evolving consumer expectations, but also provides a transparent and trustworthy foundation for advertisers.

Expect more of these privacy-centric collaborations in 2024, where brands and advertisers leverage innovative tools to ensure personalized content delivery while respecting individual data integrity. This emphasis on privacy not only enhances user trust, but also ushers in a new era of measurable and ethically sound CTV advertising practices.