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Advertising: Ad-supported connected TV is on the rise

Apparently the telly just isn’t the same without the commercial breaks…

… Because ad-supported connected TV (CTV) saw a 55% increase in time spent during the second half of 2022 – a 48% share, according to TVision measurement agency.

Distribution of time spent viewing CTV

Correlation or causation?

The increase in eyeballs is happening right not long after Netflix and Disney introduced ad-supported tiers. An interesting coincidence, for sure.

Meanwhile, ad-free subscription-only streaming services dropped 30% to a 36% share at the same time, showing that people are opting to pay less for ad-supported tiers.

Household reach by app

And now Apple wants in

The tech giant is apparently preparing to introduce an ad-supported tier for Apple TV+.

How do we know? Well, Apple is hiring seasoned TV advertising expert Lauren Fry to “help build a video advertising service,” so…

Why we care

With just about every big platform introducing or planning to introduce ad-supported tiers, CTV is slowly becoming a mainstay in US households.

That’s good news for marketers, because it means more channels and more opportunities to promote.

… And that may lead to affordable placements for smaller to medium-sized businesses as well. Fingers crossed.

Alex Lim is a certified book reviewer and editor with over 10 years of experience in the publishing industry. He has reviewed hundreds of books for reputable magazines and websites, such as The New York Times, The Guardian, and Goodreads. Alex has a master’s degree in comparative literature from Harvard University and a PhD in literary criticism from Oxford University. He is also the author of several acclaimed books on literary theory and analysis, such as The Art of Reading and How to Write a Book Review. Alex lives in London, England with his wife and two children. You can contact him at [email protected] or follow him on Website | Twitter | Facebook

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