The surge in connected TV offers opportunity for advertisers

Connected TV ad spending is rapidly rising. A recent study by eMarketer predicts that CTV ad spend in the U.S. will surpass $14 billion by 2023, up from almost $7 billion in 2019. By 2023, connected TV will account for 7% of total digital ad spending and almost 5% of total media ad spending.
This growth in ad spend is no surprise, as market penetration for connected TV is expected to exceed 60% in 2020.
So what is Connected TV?
Connected TV is any television that is connected to the internet, either with built-in internet access (Smart TVs) or via over-the-top (OTT) streaming devices such as Roku, Apple TV or Amazon Fire. Connected TV allows viewers to consume video content on their TVs, beyond scheduled programming offered over-the-air on broadcast or cable television.
What does the growth in Connected TV mean for me as a marketer?
Connected televisions offer a data-driven platform for serving video ads to an engaged and valuable audience. According to research by Adobe , close to three-quarters of millennials and gen Xers use streaming services, and 90% of U.S. consumers have binge-watched video content.
Connected TV is an efficient, strategic complement to traditional media and digital marketing campaigns. With connected TVs, advertisers can target consumers based on location, demographics, interests, and within contextually relevant content.
Working with an agency like Phase 3 Digital allows you as an advertiser to buy targeted inventory across connected televisions. Reach potential customers at the right time, on the right devices, with relevant content at the right frequency.

If you've been orbiting the digital marketing world for long, you'll know all about Google's plans to abandon the third-party cookie by 2022. The rules for cookies have already started to change thanks to the California Consumer Privacy Act (CCPA). Visit any website, and you'll get a "do you accept this cookie" pop-up. The fight for privacy and owning your data on the internet is just beginning. But what does it mean for marketers?
First, this only affects third-party cookies. Websites that track abandoned shopping carts or where you have chosen to log in will still be active and working. ( x) Those effective ads that follow you around to remind you to come back and buy? They are here to stay!
Second, even though we're losing access to visitors’ individual data, Google already has a plan in place to target ads effectively. Google created the Federated Learning of Cohorts (FLoC)for this very purpose. The goal of the FLoC is to "provide an effective replacement signal for third-party cookies." ( x) Any Google device or product you use will still file away your internet habits for advertising purposes; it will just be less precise. The idea is to shift people from individuals into broader categories. Those categories are what marketers will be targeting moving forward. If you're looking up how to replace a car battery on YouTube, you'll most likely be shifted into the "repairs vehicles" category and served ads accordingly. If we've learned anything from Facebook's targeting practices, it's that they can get very granular with those categories.
The main takeaway from the loss of the cookie is that marketers everywhere will have to be more strategic about their targeting plans. Utilizing advertising avenues that never relied on cookies is a great place to start. Paid search, emails, and social media are just a few areas of focus that generate clicks and customers while not relying on cookies. Leveraging traditional media alongside digital will also be vital to help grow your audience and brand awareness. As always, you can reach out to our digital marketing team of experts to help you navigate the change.
The cookie might be dead, but personalized digital marketing is still alive and well.







