On April 2, Wedbush hosted an industry expert call to discuss the present and future trends in Connected TV (CTV) advertising.
According to the brokerage firm, experts said they expect accelerated growth in advertising video-on-demand (AVOD) services beyond the first quarter of 2024.
Moreover, there's a growing trend towards increased programmatic ad buying, which could lead to more optimized advertising campaigns, along with improvements in measurement techniques, all of which are forecasted to sustain expansion in this sector.
Two primary candidates poised to capitalize on these trends and witness “accelerating growth” are Amazon (NASDAQ:AMZN) and Netflix (NASDAQ:NFLX), Wedbush said.
“Netflix’s CPMs and ad delivery rates have remained consistent at around $40 and at four ads per hour, respectively, and will likely remain consistent throughout 2024, aside from a seasonal rise in CPMs in 2H:24,” analysts said.
The streaming giant advertising continues to gain traction as it has widened its capabilities by striking partnerships “that enhance its ability to lean on consumer data and offer more refined measurement and ROI (specifically its partnership with Amazon's CTV platform),” analysts added.
As for Amazon, Wedbush sees the tech giant as one of the leading candidates to capture a larger portion of the CTV advertising market “given the company’s leading first-party data and ability to deliver insights to advertisers to inform targeting and measurement,” analysts said.