Next Level Contextual Targeting: CTV Expanding Beyond Genres

Next Level Contextual Targeting

In 2022, advertisers spent a staggering $21.16 billion on Connected TV (CTV) advertising, making up 6.1% of the total media ad spending. The US market, in particular, witnessed CTV emerge as the fastest-growing ad format, with a remarkable projected growth rate of 27.2% in 2023, expected to reach a total expenditure of $26.92 billion, according to research. 

Well, these figures vividly illustrate the significant and rapid expansion of CTV advertising.

In the United States, CTV has revolutionized video consumption and completely transformed the digital advertising landscape. This technology has emerged as one of the most influential broadcast innovations in recent decades, granting viewers access to an extensive digital library of over-the-top (OTT) digital video content.

 92%  of U.S. households were targeted through CTV programmatic advertising in 2022. 

 As viewers increasingly shift from traditional linear TV to streaming options, advertisers are swiftly embracing the opportunities presented by this digital shift. However, the question arises: what is driving the sudden growth of CTV among users?

The growth of Connected TV (CTV) can be attributed to the changing preferences of consumers, who seek more personalized and convenient viewing experiences. This has led to a significant rise in cord-cutters, with audiences turning to streaming services.

The appeal of this shift lies in the expanded content options that CTV offers compared to traditional linear TV. Viewers now have a broader range of content choices available to them. Additionally, the flexibility of watching on their own schedule is another advantage CTV provides, eliminating the need to adhere to rigid linear TV broadcasting schedules.

From the advertiser’s perspective, this trend presents an opportunity to engage with audiences in a more targeted and relevant manner. By understanding viewers’ preferences and habits, advertisers can tailor their storytelling to resonate with specific audiences, leading to more effective and impactful campaigns. The growth of CTV has opened new doors for advertisers to connect with their target consumers in a way that was not feasible with traditional TV advertising methods.

Why Advertisers Must Focus on This Shift?

Let’s recall the basic motive of advertising, it is to create brand awareness and attract the audience. And to do so you have to go where your audience is.  

1. Reach the wider audience:  The CTV audience is growing rapidly. According to a study,  the number of CTV users in the US is expected to reach 213.7 million in 2023, up from 182.6 million in 2021.

2. Higher Engagement: CTV audience is highly engaged and entirely focused on the content they are consuming. Unlike traditional TV advertising, viewers cannot easily switch channels or fast-forward through commercials, and CTV ads cannot be skipped or ignored. As a result, viewers are more likely to pay attention to CTV ads, leading to higher engagement and brand recall.  

But this form of advertising is not a cakewalk! there are a few challenges 

Challenges of CTV Advertising

Advertisers encounter several challenges in the realm of Connected TV (CTV) advertising:

1. Ad Placement Errors:

Despite having access to a wide audience segment, advertisers frequently face the issue of incorrect ad placement. Studies reveal that around 20 percent of ad breaks targeted at children contain inappropriate ads, such as those for alcohol, casinos, gambling, adult hygiene products, pharmaceuticals, and high-sugar/fat foods. These misplaced ads can harm brand perception and result in inefficiency in reaching the intended audience.

2. Misalignment with Content Genre:

CTV offers an extensive range of content categories, catering to diverse viewer preferences from romantic comedies to thrillers and more. However, advertisers often struggle to ensure their ads appear next to relevant genres. For instance, an ad for home decor might unexpectedly be placed during thriller content, leading to a lack of contextual relevance and potential disconnect with the viewers.

These challenges highlight the need for advertisers to fine-tune their ad placement strategies and employ better mechanisms to ensure the maximum impact and effectiveness of their CTV campaigns.

How Advertisers Can Overcome the CTV Advertising Challenges?

Amid the challenges faced by advertisers in CTV advertising, a highly promising solution that can drive a significant difference is the adoption of contextual advertising. This innovative approach offers improved targeting and engagement opportunities within the rapidly evolving CTV landscape.

As cookie depreciation affects traditional targeting methods, contextual advertising has emerged as a prominent alternative. Advertisers are increasingly shifting towards this form of advertising, particularly in the CTV domain, to address the challenges of misplaced ad placement and lack of contextual relevance.

Leading ad-tech firms now provide advanced contextual targeting solutions on CTV that go beyond traditional genre-based approaches. Utilizing AI-powered contextual detection platforms performs frame-by-frame analysis for CTV content. This sophisticated technology leverages contextual triggers such as faces, logos, sentiment, audio, objects, scenes, and on-screen text to extract relevant data and ensure the placement of the most suitable ads.

Contextual advertising not only enhances relevance but also aids in avoiding brand safety concerns. Advertisers can benefit from precise targeting options, enabling them to granularly target their desired audience based on specific requirements. With the ability to deliver more contextually relevant ads, advertisers can achieve better audience engagement and improved campaign performance in the dynamic world of CTV advertising.


The future of CTV appears highly promising, driven by the projection and increasing popularity of streaming services. Notably, 44% of CTV viewers belong to the millennial demographic, making them the primary age group engaging with content on CTV devices.

To tap into this valuable audience, advertisers must seize the opportunity to target millennials effectively, going beyond conventional genre-based approaches. Leveraging advanced contextual advertising techniques can ensure relevant and personalized ad placements that resonate with this tech-savvy and content-hungry audience. By recognizing the significance of millennials in the CTV landscape and tailoring their strategies accordingly, advertisers can unlock the full potential of CTV advertising and establish meaningful connections with their target audience.