Tim Greatrex It is no exaggeration to say that connected TV (CTV) — the connection of TV sets to the internet — has revitalised the TV medium, reversing a long-term decline in viewership and revenue. The internet was once considered a threat to traditional TV, but now it is seen as its saviour.
Not long ago, experts proclaimed the end of television’s golden age, arguing that TV was becoming marginalised by smaller screen devices. It seemed TV was on a path to obsolescence. However, from 2005 onwards, the decline in TV viewing slowed and then reversed. The outlook for TV is now brighter than ever.
In collaboration with Croft Analytics, we’ve looked into the state of connected TV in the UK, highlighting major trends in CTV technology, content, audience and advertising on connected TV. As the report shows, the TV medium has been transformed in just ten years and has become a paid media channel for brands of all sizes.
What is connected TV?
CTV is rapidly reshaping the TV landscape in the UK, offering viewers and advertisers numerous new opportunities and experiences. CTV has revolutionised the technology that delivers TV, the content on TV, the audience to TV and the nature of TV advertising.
A connected TV connects to the internet through Smart TVs, streaming devices, or gaming consoles. Over the past decade, the UK TV landscape has changed dramatically:
- In 2014, only 11% of homes had a Smart TV. By 2024, this figure surged to 75%, with 92% of adults using connected TV services
- Average daily video consumption rose to 4.5 hours, mainly on TV sets
- Linear broadcast TV viewing declined significantly, while Broadcaster Video On Demand (BVOD) and Subscription Video On Demand (SVOD) services saw substantial growth
- Video-sharing platforms (VSPs), especially YouTube, experienced a notable rise in TV viewership
- Free Ad-Supported TV (FAST) services like Amazon’s Freevee gained traction, reflecting a shift towards digital and on-demand content
What is connected TV advertising?
Connected TV advertising involves delivering addressable advertising to TV sets over the internet.
How does connected TV advertising work?
CTV content providers offer CTV advertising through various connected TV advertising companies:
- CTV advertising exchanges such as Planet V (ITV), LG Ads, Magnite, Freewheel, Nexxen, Verve Group, Sharethrough and Triplelift
- Programmatic advertising platforms such as Sky Advance, StackAdapt, The Trade Desk, Amazon DSP and Google DV360
CTV advertising’s advanced targeting capabilities can be used to build brand awareness, foster consideration and activate sales at the point of purchase. Ads can be tailored and targeted to category buyers and existing customers separately.
Jennifer Brickler from MNTN noted, “TV is [now] a performance machine, like search and social, with affinity-based targeting, audience segmentation, incrementality reporting, and accurate real-time attribution. Reliably connecting the dots between views and action is now a reality for CTV.”
CTV offers the digital advertising targeting precision with the large-screen viewing experience of TV.
CTV is no longer a niche platform; it’s a mainstream medium reshaping the TV landscape. By understanding the potential of CTV and embracing its capabilities, advertisers can unlock new opportunities to connect with their audience and drive business growth. Get in touch if you’re looking to branch out into CTV advertising, we are happy to help get you started.
Make sure you download our full CTV report at the below to get all the details.