IAB Compass: Navigating Connected TV
How to get the most out of IAB Compass
Between them, AR/VR, connected TV, gaming and shoppable advertising are providing advertisers with new and exciting ways to bring brands to life, resonate with consumers, and drive sales. IAB Compass is your essential manual to understanding the future of these four channels and how you can harness them most effectively.
Download the full report or use this page as a way to find out more about forecasts and actionable recommendations.
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Connected TV: key viewing figures
66%
of UK households now use CTV devices
28%
of UK adults view CTV on a TV device
55%
of 16-34s view CTV on a TV device
The findings in under 3 minutes
CTV advertising forecast
We forecast CTV advertising to reach £2.31bn by 2026, although there are factors that could drive this up or down.
Considering the likely market developments, we have three potential scenarios for how CTV advertising may develop including a Base Case, a more positive High Growth Case and a Low Growth Case.
Under the Base Case, CTV advertising would reach £2.31bn by 2026, with growth particularly in AVOD. This is the most likely scenario of the three options. Under the High Growth Case, CTV advertising would reach £2.81bn and under the Low Growth Case, £1.60bn by 2026.
To find out more about the forecasting please see page 24 of the full report, which contains more detail.
How much could advertisers be investing CTV by 2026?
£2.31bn
Base Case
£2.81bn
High Growth Case
£1.60bn
Low Growth Case
The CTV opportunity & what to do next
Advertisers should explore how CTV can complement existing TV and/or digital video activity. CTV advertising is already significant for TV and digital advertisers - and is set to grow for the foreseeable future.
CTV offers TV advertisers incremental reach and targeting, while offering digital advertisers access to a TV experience with more flexibility and lower minimum spend, at significant scale. The introduction of Netflix and Disney+ ad-supported tiers, along with a general shift in viewership to streaming, will drive further growth in inventory and the advertising offering is likely to mature as a result.
What should advertisers & agencies do?
Our industry survey revealed the need for greater education on CTV, as well as closer integration with TV and digital video planning and campaign execution.
For advertisers relatively new to CTV, connect with CTV suppliers to understand their offering and build up an understanding of the roles CTV can play in broader campaigns - for instance, complementing current TV or digital video activity. Beyond this, we recommend integrating CTV into TV and video activity, and looking for opportunities to drive efficiency and effectiveness in campaign delivery.
Recommendations for advertisers & agencies
- Connect with CTV suppliers to explore offerings
- Build an understanding of the roles CTV can play
- Align CTV activity across AV (or TV) and digital teams
- Exploit the new creative options CTV offers
- Build execution capabilities and drive efficiency
To find out more about the recommendations please see page 27 of the full report, which contains more detail
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AVOD services offer more flexibility and the ability to target more specific audiences that would be hard to get to or very expensive to target on linear TV, or even BVOD.
Media agency, Executive Director for Digital
Explore IAB Compass in full
- Executive summary
- What is CTV advertising
- How CTV advertising has developed
- Advertiser uptake of CTV and the challenges faced
- Current spending levels on CTV advertising
- Future developments in CTV
- CTV advertising forecast
- The CTV opportunity and what to do next
Download the full report to explore the following chapters on CTV, as well as what to expect in AR/VR, gaming and shoppable advertising
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