There is no stopping it: consumers are cutting cords, and connected TV (CTV) has become the key to reaching millions of engaged viewers. Advertisers have taken note. Many are dedicating more and more resources to the channel. In 2024, US brands will spend over $28 billion on CTV, making up one-third of the total spent on TV advertising (CTV and linear), according to EMARKETER.

At MNTN, we have found a similar growth story. For example, in a summer seasonal analysis of brands on our platform, we found that advertisers with a tie-in to the season launched 60% more campaigns in 2023 than they did the year prior. We’re expecting 2024 to follow suit.

It’s not just the sheer number of potential customers sending CTV ad spending through the roof—one of the channel’s biggest draws is its performance capabilities.

CTV is a powerful performance engine

When a marketer thinks of TV advertising, he or she is likely to think “reach and awareness.” While this may still ring true for linear TV, CTV’s performance-first features—precision audience targeting, detailed reporting, and so on—align it more closely with digital channels like paid social media and search.

“Everyone thinks there’s one ad industry,” said Mark Douglas, CEO of MNTN, at a recent industry event. “There’s actually two. There’s one for brand advertisers, which, if you look at television in the US, does about 60 to 70 billion dollars in revenue. And then there’s another one for performance advertisers—direct response. That ad industry is approximately three times that size. The differences are attribution and targeting.”

Those key features are what set CTV apart from its linear counterpart, and many advertisers have already recognized this. A survey by Advertising Week and MNTN found that 65% of marketers classify CTV as a performance channel, and 52% use it to drive key metrics like web visits and revenue. Those using CTV as a performance channel are seeing major payoffs.

CTV advertisers are thriving

While the winter holidays often get all the attention, summertime can also be fruitful for CTV advertisers. The season’s midyear position offers advertisers opportunities to close out H1 2024 strong, while preparing them to tackle H2 2024 head on.

We found that industries with a tie-in to the season—think apparel, home and garden, and recreation—saw notable year-over-year growth. When comparing these advertisers’ performance between June 1, 2023, and Labor Day 2023 to the same period in 2022, we found that average revenue increased by 41.8% and average return on ad spend by 33.5%, in addition to other key metrics.

The democratization of TV advertising

CTV is unique not only in its performance capabilities, but also in how it has democratized TV advertising. When linear was the sole option, TV advertising was only realistic for megabrands. But with CTV, businesses of all sizes can effectively reach consumers wherever they stream their favorite shows. At MNTN, we have seen this firsthand—90% of our customers are first-time TV advertisers.

For brands who want to continue with linear TV buys, CTV will not get in the way. Because CTV is a digital performance channel, it does not compete with ads served on traditional TV. Instead, it acts as an additive channel, enabling advertisers to diversify their marketing mix while producing real results.