On April 2, Wedbush hosted a call of industry experts to discuss current and future trends in connected TV (CTV) advertising.
According to the brokerage firm, experts said they expect accelerated growth in video-on-demand (AVOD) advertising services beyond the first quarter of 2024.
Additionally, there is a growing trend towards greater programmatic advertising buying, which could lead to more optimized advertising campaigns, along with improvements in measurement techniques, all of which are expected to sustain expansion in this sector.
Two leading candidates poised to capitalize on these trends and see “accelerated growth” are amazon (NASDAQ and Netflix (NASDAQ ), Wedbush said.
“Netflix's CPMs and ad delivery rates have remained constant at around $40 and four ads per hour, respectively, and will likely remain constant throughout 2024, aside from a seasonal increase in CPMs in 2H :24,” the analysts said.
The streaming advertising giant continues to gain ground as it has expanded its capabilities through partnerships “that enhance its ability to lean on consumer data and deliver more refined measurement and return on investment (ROI) (specifically its partnership with amazon's CTV platform), the analysts added.
As for amazon, Wedbush sees the tech giant as a leading candidate to capture a larger share of the CTV advertising market “given the company's core first-party data and its ability to provide information to advertisers to inform targeting and measurement,” the analysts said. .
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