PR Newswire
A new report from Gracenote, Nielsen’s content data unit, reveals a growing disconnect in connected TV (CTV) advertising: marketers aim to drive brand awareness with large-scale campaigns, yet many rely on narrow user- and audience-based targeting more suited to small, precise segments. This misalignment is likely fueling skepticism, with 32% of surveyed media professionals rating CTV as not very effective.
CTV is no longer optional in media plans—consumers are watching. The IAB predicts U.S. CTV ad spending will hit $26.6 billion this year, up 12% from 2024. Gracenote’s survey found nearly one-third of respondents allocate at least 40% of their budgets to CTV. Despite this significant investment, traditional targeting approaches are limiting reach and scale, leaving brand-building objectives partially unmet.
Brand Goals vs. Tactics
Media executives report brand awareness as the top CTV objective, followed by revenue growth and customer acquisition. Customer retention ranks fourth, reflecting its reliance on performance-focused strategies. Gracenote recommends pivoting toward content-based targeting—focusing on what viewers are watching, not just who they are—to unlock premium brand alignment and broader audience reach.
“CTV has not delivered the scale and premium reach marketers expect of the largest screen in the house, largely due to narrow targeting tactics,” said Jake Richardson, VP of Partnerships at Gracenote. “Leveraging contextual targeting capabilities opens new opportunities to boost return on ad spend while achieving the scale they’ve been seeking.”
Gracenote’s expertise in entertainment metadata, taxonomy, and IDs is now enabling more effective programmatic CTV advertising. By providing structured, program-level data, Gracenote allows marketers to better execute contextually targeted campaigns, enhancing both reach and engagement across diverse audiences.
The report surveyed U.S.-based brand and agency executives across media and entertainment, telecommunications, retail, financial services, automotive, and consumer packaged goods. Its findings underline a pivotal moment in CTV strategy: to maximize the channel’s potential, marketers must evolve from narrow, audience-only tactics to context-aware, content-driven approaches.
BusinessWire
