They have been two of the fastest-growing consumer media in recent years. Now the digital ad industry’s umbrella group sees a brighter future at their fusion.
The intersection of Connected TV (CTV) and podcasting represents one of the most dynamic frontiers in digital media, promising innovative ways for advertisers to engage with audiences, according to Cintia Gabilan, VP, Media Center at IAB.
As consumption and reach expand, the potential for collaboration between these two platforms is ripe with opportunities, particularly when AI, media optimization, and addressability come into play, she says.
CTV and Podcasting Growth Trends
“Both CTV and OTT are maintaining very big forecast numbers,” Gabilan tells Beet.TV editorial director Lisa Granatstein, speaking at IAB’s own NewFronts.
She forecasts that the CTV business, which was already a $20 billion enterprise last year, is set to grow to approximately $23 billion this year.
This massive growth is underpinned by the rising adoption of streaming platforms and the increasing popularity of podcasting, which sees 135 million people tuning in monthly in the U.S.
Opportunities in the CTV Space
According to Gabilan, the logged-in nature of users on CTV platforms offers “targeting opportunity to be very precise in the segmentation.” She is particularly excited about the potential for shoppable and interactive units, which enable CTV to engage with consumers in the lower funnel.
As the new VP of the Media Center at IAB, Gabilan is at the forefront of the industry’s highest growth categories, including digital video, CTV, audio, podcasting, and digital out of home. She is concerned with key initiatives, including accelerating the adoption of streaming platforms and fostering diversity and inclusivity in the podcast world.
“Now podcast is a mass reach medium,” Gabilan remarks. “It’s so deep and so captivating that we want to make sure we are working D&I through that lens.” She also notes the importance of enhancing measurement capabilities and promoting privacy-safe, brand-safe practices to drive sustainable growth within the ecosystem.
Challenges to Overcome
However, with rapid growth comes significant challenges. Gabilan points out that audience fragmentation is leading to complexities in targeting and buying.
“The standardization of measurement across partners is a gap that we need to help the industry in partnership to solve,” she adds, highlighting that the lack of uniform attribution models is an obstacle to the medium’s effectiveness.
She also underscores the importance of addressing privacy regulations such as GDPR, CCPA, and potential new legislation, as well as combating ad fraud to ensure brand safety.
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