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BizReport : Advertising : January 08, 2021

Expert: How CTV will impact 2021

With the production and release of a vaccine, many are sure that lockdown measures and stay home orders will soon lift, and that that will have an impact on how consumers engage with their favored retailers and brands. But, according to one expert, not everything will return to 'normal' as the world eases out of a global pandemic. Here are a few trends that could create a challenge for 2021.

by Kristina Knight

First, look for CTV to continue to flourish

"Consumers will continue to spend time watching streaming TV. There are discussions about people only temporarily leaving linear because of a lack of sports. However, by the time the pandemic is over, people who switched due to a lack of sports won't need to switch back because streaming providers and the leagues will have negotiated content deals. For example, Peacock will stream tons of sports, including the next Olympics," said Tal Chalozin, Innovid. "Because of this consumer shift, we'll see advertisers continue to invest in CTV. The strategy of buying primetime television hasn't changed: they still want to associate the brand with premium content and reach big audiences. The tactics, however, have changed. Advertisers will now purchase CTV inventory to achieve those goals."

Second, look for audience-buying to become the norm

"A year ago, the percentage of CTV media bought programmatically was in the mid-teens. And now, it's growing into the mid-twenties. At Innovid, we've seen a 207% YoY increase in impression growth in programmatic based inventory. In 2021, we will see programmatic buying on CTV become the norm. It will be data-driven, audience-based and use technology and automation," said Chalozin.

Third, experience will outweigh ecommerce

"Digital is where everyone is spending time and money. This year saw an all-time high for ecommerce because consumers weren't able to spend money on services like travel and restaurants, so they spent it on goods instead. In 2021, I think we're going to see a big pull back on spending on goods once things start to open back up and consumers can start spending more on services. However, we can expect that virtual conveniences such as food delivery and curbside pickup are here to stay," said Chalozin.

Tags: advertising, CTV advertising, CTV trends, Innovid, video ad trends, video advertising

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