CTV Explained: The New Landscape of TV Advertising After Cable

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Stirista
April 28, 2022
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    For decades, cable TV was the golden ticket for advertisers. Prime-time commercial placements defined pop culture, anchored brand relevance, and delivered massive reach into American households. But that era is ending fast. While the shift away from traditional cable may feel intimidating to some marketers, the rise of Connected TV (CTV) offers a more affordable, data-driven, and highly targetable alternative—especially in a world moving beyond cookies.

    As hybrid and remote work lifestyles expand, the largest digital screen in the home—the TV—is getting more daily usage. Millions of consumers are cutting the cord in favor of streaming platforms that let them watch what they want, when they want. This move toward a fully digital ecosystem unlocks real advantages for advertisers: easier data collection, better personalization, and significantly more accurate targeting.

    Streaming Moves Upstream — Faster Than Cable Can Decline

    Streaming is now the fastest-growing video format in both viewership and media investment. Americans are cancelling cable subscriptions at a rate of 4–5% per year. According to Tubi’s 2022 State of Streaming Report¹, fewer than half of U.S. households will keep cable or satellite TV within the next two years.

    Meanwhile:

    • CTV and OTT ad spend grew 34% in 2021

    • National broadcast & cable only grew 7.4%

    • Over 82% of U.S. households now own a CTV or streaming device

    • Global smart TV adoption will surpass 50% of households by 2026 (Strategy Analytics²)

    Remote work accelerated this trend. Nielsen³ reports that CTV usage hours increased 81% year-over-year, reaching nearly 4 billion hours watched each week. Cable viewership hours remain flat, audience counts continue to fall, and engagement continues to shift toward streaming screens.

    Cable Is Stale as Cookies — and CTV Is Built for Real Data

    Cookies are disappearing, and with them goes traditional surface-level targeting. The future belongs to first-party data, identity-based marketing, and real-time segmentation. With streaming on the rise, the desktop is no longer the central hub for data collection—the TV is.

    CRM platforms, identity graphs, and onsite pixel data now allow advertisers to:

    • Match audiences to high-value CTV inventory
    • Create segments from first-party data pools
    • Serve personalized ads to cart abandoners vs. loyal customers
    • Target based on actual behavior, not broad assumptions

    This level of accuracy wasn’t realistic in traditional cable TV. But with identity marketing and CTV targeting, messaging can now be tailored to the viewer and the content they actively consume.

    Example: A viewer watching culinary content is far more likely to engage with kitchenware or grocery brand advertising delivered right after that programming.

    Why CTV Targeting Outperforms Traditional Cable

    Traditional cable lacked precision. DVR and time-shifting made ads skippable. Live viewership dropped. Cable placements became a gamble.

    CTV fixes those problems:

    • Most CTV ads cannot be skipped

    • Completion rates are significantly higher

    • Inventory aligns with premium streaming content

    • Advertisers are not restricted by time slots

    • Precision targeting replaces broad household assumptions

    CTV lets brands reach the right audience on the right screen, at the right moment—something cable never consistently delivered.

    Connecting Better With Connected TV

    Consumer perception backs this shift. A recent Magnite survey⁴ found:

    • 50% of viewers say ads are a meaningful part of the streaming experience

    • 62% discovered new products through streaming ads

    People aren’t rejecting ads—they’re rejecting irrelevant advertising.

    That’s why first-party data, identity targeting, and omnichannel campaign execution matter. When marketers connect email, social, display, and CTV, the result is a consistent cross-screen experience that improves ROI and reduces waste.

    Where Stirista Fits

    Stirista enables marketers to activate identity-level targeting across CTV, display, email, and social. With real-time updates and second-by-second identity resolution, campaigns can reach relevant audiences without relying on cookies or outdated data.

    At Stirista, Identity is our Identity. We help marketers generate revenue with accurate data—and we built the OMNA Real-Time Identity Graph to power the next era of targeting, personalization, and performance.

    ¹https://media.foxadsolutions.com/wp-content/uploads/2022/02/08220546/Tubi_The-Stream_Audience-Report_2022-.pdf
    
    ²https://news.strategyanalytics.com/press-releases/press-release-details/2021/Strategy-Analytics-Global-Smart-TV-Household-Ownership-to-Exceed-50-by-2026/
    
    ³https://www.nielsen.com/us/en/insights/rhttpsesource/2021/best-practices-to-optimize-your-connected-tv-spend/
    
    4https://www.magnite.com/press/magnite-ctv-live-research/