According to a new study from IAB UK and comScore, the Open Internet, which includes channels such as digital audio, digital out-of-home, the web, connected TV (CTV), and gaming, captures 76 percent of consumer attention. Consumers, on the other hand, are spending significantly less time on social media.
According to the study, consumers’ average time spent on social media platforms has decreased by nearly 30 minutes per day since 2017. The decrease was most pronounced among 16 to 24-year-olds, who spent an average of 2 hours and 12 minutes per day on social media in 2017, but only 1 hour and 18 minutes in 2019.
The shift away from desktop computers and toward mobile devices is driving this decline.
According to the report, consumers are spending more time than ever before watching video content on their smartphones. They spent an average of 2 hours per day on their phones watching video content in 2019, up from 1 hour and 26 minutes in 2018.
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The future is streaming: less people on social media platforms
Gen Z spends nearly two additional hours on the Open Internet. Social platforms captured nearly $58 billion of the $189 billion spent on digital advertising in the United States last year, a 39 percent increase year on year. Nonetheless, with the rise of CTV, this is beginning to change. The future is streaming, and digital video, which includes CTV and OTT, has increased by an astounding 51% to around 40%, a target that marketing agencies are well aware of.
Because of the rise of CTV and digital video, social media marketers must shift their focus from community building to creating experiences for their consumers on these platforms. They must provide them with content worth watching rather than simply posting it on their feeds, and they should also consider increasing the amount of time they spend on open web channels such as YouTube and Netflix. Marketers can no longer afford to ignore the CTV industry, which is rapidly expanding.
Advertisers have already begun to shift their social media spend to CTV channels. Connected TV ad spend is expected to hit $21.2 Billion in 2022, up from $6 billion in 2019. The number of people watching live streaming video on a TV set is expected to increase from 122 million in 2019 to 180 million by 2022. In addition, the average amount of time spent watching live streaming video on a TV set will rise from 3 hours per month in 2018 to 6 hours per month in 2022.
The growth of CTV and new opportunities for the advertisers
According to Ian Schafer, founder and CEO of Deep Focus, the growth of CTV is a direct result of providing advertisers with a new way to buy media that “results-wise, is on par with what the walled gardens can offer.”
As consumers move away from digital platforms such as Facebook, Google, and YouTube, which are frequently chastised for giving brands less control over what content appears on their platforms, brands are looking for new ways to reach customers.
The IAB has released its most recent data on digital ad spend, and it’s good news for connected TV. In 2021, digital video, including CTV and OTT, had the second-highest year-over-year growth rate of any ad format, trailing only digital audio. According to the report, time spent watching digital video has increased by more than 50%.
Since 2018, the number of connected TVs in the United States has more than doubled, and it is expected to reach 85 million units by 2022. The introduction of smart TVs from companies such as Samsung, TCL, and LG, as well as new 4K streaming players from Roku and Apple, has contributed to this growth.
Aside from larger brands entering the market, there is an increase in direct-to-consumer offerings such as Starz Play and HBO Now. These services are available through a variety of platforms, including Roku, Apple TV, and Amazon Fire Stick, as well as traditional cable providers such as Comcast Xfinity X1 and DirecTV Now (formerly AT&T Uverse).
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