TV & Audio Trending Topics To Watch in 2024
Streaming TV itself is a rapidly growing landscape, with advertising options quickly evolving to meet changing viewer and brand needs, technological advances, transformations in performance marketing as a whole, and more. In this section, we explore some of the most important trends to keep in mind as you build or optimize your next streaming TV campaign.
To keep your knowledge up-to-date throughout the year, be sure to check out the Tinuiti blog, research and guides, and our webinar schedule.
Connected TV
US TV and Connected TV (CTV) Ad Spending, 2023-2027 billions
Source: https://chart-na1.emarketer.com/265005/us-tv-connected-tv-ctv-ad-spending-2023-2027-billions
Connected TV (CTV) advertising is a subset of OTT (over-the-top) advertising, referring specifically to streaming ads that are served on internet-connected televisions—commonly the largest screen(s) in the house. CTV ad spend is projected to grow by more than 20% in 2024, surpassing $30B.
According to recent eMarketer results, 58% of surveyed US adults stream video content on a Connected TV. Mobile devices took a solid but distant second place with 26% of respondents watching on their phone.
Let’s look at three reasons we expect CTV advertising to continue climbing in 2024…
CPMs seeing a downward trend on top/premium services
Costs per Thousand (CPMs), Ad Loads, and Viewers on Ad-Supported Tiers of Select US Streaming Services, 2023
In a world where the prices on nearly anything and everything are climbing, CPMs on some of the most desirable services for brands have been declining. With CTV viewership on the rise, it only makes sense for more brands to enter or expand their investment in the space.
“After a dip in 2023 caused by traditional TV’s long decline and a relatively weak period for CTV, combined spending on TV and CTV will grow every year through 2027 and close in on $100 billion.” (source)
Increasing price of ad-free subscriptions
As ad-free streaming TV subscription costs continue increasing, new subscribers are voting for ad-supported offerings with their dollars (or more accurately their choice to save those dollars). The people have spoken, and they’re open to advertising in exchange for a lower subscription cost.
It’s a long-held misconception that viewers don’t like commercials. Now, we aren’t saying they don’t want that ad break to hurry up so they can get back to their program of choice. But we are saying viewers understand the role that ads (literally) play in them seeing the content they want to see for a lower price. When you’re able to see the savings on your bill each month, ad-supported is an easy choice for many.
This year, the evidence that ad-free is less of a focus for both platforms and viewers was showcased in many of the Black Friday and Cyber Monday streaming TV deals, which leaned heavily toward ad-supported packages.
“Continued price increases on streaming subscriptions will propel more viewers into ad-supported options. Combined with greater restrictions on password sharing, this will push more viewers into ad-supported tiers, increasing the amount of inventory brands can tap into. The unit economics on ad-free offerings are challenging, with ad-supported generally providing better returns for publishers. This will especially help FAST platforms like Tubi and Pluto. Additionally, I'd include Amazon in that group because it's an extra perk of having a larger subscription, and they're starting to show ads on Prime Video. Expect a larger audience pool and competition between publishers for advertisers' business (i.e., room to negotiate).”
Stefanos Metaxas EVP, TV & Audio at Tinuiti
Clean rooms and stepped up privacy practices emerge
As cookies continue to crumble and more signals are lost, data clean rooms present a highly valuable, privacy-compliant path for advertisers to leverage networks’ rich first-party data to continually reach the right audiences with their ads.
Performance marketing firms like Tinuiti that already have deep relationships with networks are prepared to expertly and efficiently navigate these evolving waters. Working with an agency that already has established relationships with networks offers several benefits, especially when it comes to addressing privacy concerns and making use of clean rooms.
Linear TV
Linear TV, the traditional method of watching television through broadcast, cable, or satellite, has been facing significant challenges in recent years. Unlike on-demand streaming TV services, Linear TV operates on predefined channels, offering a curated selection of programs at scheduled times. The rise of streaming TV services and changing consumer preferences have led to cord-cutting, prompting the industry to adapt and evolve.
Here are three key trends within the linear TV landscape that are worth keeping an eye on as we move into the new year…
The Rise of Direct-to-Consumer Sports Options
The traditional model of regional sports networks bundled with cable subscriptions is undergoing a major shift. With the emergence of direct-to-consumer offerings from major sports leagues and platforms like ESPN+, fans are gaining more control over accessing their favorite sports content. This shift not only provides viewers with more flexibility but also challenges the traditional broadcasting model. This trend is likely to accelerate, further disrupting the regional sports network model and potentially leading to a decline in overall linear subscriptions.
“Between the cord-cutting acceleration, carriage disputes, and live sports moving to digital platforms, linear audiences will continue to decrease. Not to mention the impact of large publishers potentially divesting their linear properties. Larger brands that continue to have a large linear presence should be thinking about the factors hindering them from diving head-first into streaming, and creating a plan for how they can use the more granular streaming data and targeting to their advantage.”
Devin McGaughey Chief Solutions Officer, TV & Audio at Tinuiti
The Skinny Bundle Shakeup
Skinny bundles, like SlingTV, offer a smaller selection of cable channels at a lower price point. While initially seen as a potential savior for linear TV, recent price drops by SlingTV and potential moves by other providers could significantly impact the market. If skinny bundles become more affordable, they could attract cord-cutters and traditional cable subscribers alike, further accelerating this trend and challenging the traditional cable model.
“While we don't expect skinny bundles to reverse the trend of people watching less live TV, they create an in-between option for people that aren't ready to break up with linear but feel like cable is too expensive. Price decreases (like Sling) make it even more attractive as an option.”
Stefanos Metaxas EVP, TV & Audio at Tinuiti
Disney's Strategic Maneuvers
Disney's future plans for its linear networks, including ESPN, are a major source of industry speculation. With rumors of potential sales, partnerships, or even a separate streaming platform, Disney's decisions will have a significant impact on the linear TV landscape. Their actions could set the tone for the industry as a whole, influencing other media companies and shaping the future of linear TV.
“Disney’s move to purchase Comcast’s remaining stake in Hulu brings the company closer to the goal of its core offerings being theme parks, ESPN, Disney+, and Hulu. Commentary on ways Disney would fund a move like this one has largely centered around the prospect of selling its operations in India or its linear TV assets. A deal for the former is said to be very near (if it can clear antitrust headaches), which will help with cash flow and may buy more time for the linear pieces of business, though this is still a strong indicator of the direction Disney intends to go.”
Shasta Cafarelli SVP, Media Strategy at Tinuiti
These trends highlight the dynamic nature of the linear TV industry. As technology continues to evolve and consumer preferences change, traditional TV providers will need to adapt their strategies to remain competitive. Direct-to-consumer offerings, skinny bundles, and the future of Disney's networks are just some of the key factors that will shape the future of linear TV in the years to come. It will be interesting to see how these trends play out and how the industry responds to the changing landscape.
Digital Audio
Digital Audio Listeners US, 2023-2027
The number of digital audio listeners will continue to climb in coming years, with nearly 67% of the US population consuming digital audio content today. The digital audio category comprises two distinct channels that attract listeners of all ages: streaming audio and podcasts.
Popular streaming audio platforms include music-focused Pandora—though you can listen to podcasts there, as well—with the most popular podcast platforms including YouTube, Apple Podcasts, and Spotify. Podcasts have had the most popularity to date in North America, but listenership is growing across the world.
Digital audio trends we’ll be watching closely in 2024 include…
Expanded interactive ad opportunities
Interactive audio ads give listeners the opportunity to take clickless action on an ad using voice commands, such as visiting a website or sending them an email with more information. Amazon launched interactive ads on Amazon DSP in May 2022, giving listeners the option to add an advertised item right to their cart.
We expect these audio ad opportunities to grow alongside other forward-thinking initiatives in digital advertising at large, including the rise in shoppable media.
More listeners choosing YouTube for podcast consumption
Whether they’re looking to create a podcast or listen to one, we expect the number of folks who turn to YouTube will continue to climb throughout the year ahead.
The majority of recent survey respondents (48%) turn to YouTube first when looking for new podcasts—twice that of Spotify. Looking at which digital audio platforms listeners had used in the previous 12 months, YouTube once again took a top placement, just slightly edged out by Spotify.
Spotify, Apple, and YouTube have all been investing in updating their podcast capabilities, with YouTube’s plans including “enhanced analytics, discovery, and search,” including RSS feed support for podcasts. Considering YouTube is already the second-largest search engine—only taking a back to seat to their owner, Google—we’re confident that their search enhancements will be next level.
Programmatic advertising options on the rise
Programmatic buys are orchestrated with help from automated technical tools. AI is used to create programmatic advertising buying decisions that conduct real-time bidding at a pace and scale that is impossible to maintain manually.
Programmatic ad spend is increasing across many digital channels, including CTV, Display, Video, OOH—and, you guessed it—digital audio services and podcasts.
Interest and options are likely to continue climbing, making this automated method of media buying more attractive to a wider variety of advertisers.
“Although the share of digital audio spend placed programmatically is relatively low, this is a space where I expect to see tremendous growth and adoption. Streaming audio, in particular, is low-hanging fruit where brands can transact with the level of control and sophistication they do in the programmatic video space, even deploying strategies and tactics across multiple channels housed in the same DSP. The introduction of programmatic to podcasting poses a unique challenge of how to preserve the organic, personal host read ad that is foundational to many brands' success, but maintaining that strategy while also layering on targeted programmatic buys is where brands will truly find scale.”