Connected TV (CTV) is currently delivering 30% more return on investment (ROI), yet it remains undervalued in media planning. This disconnect is costing brands significantly, according to analytics firm Analytic Partners.
Despite CTV no longer being a new concept, the advertising industry has lagged in recognising its potential. Viewers across income levels are steadily migrating from traditional Pay TV to streaming services, signalling a shift in viewing habits. However, brand budgets have not yet aligned with this significant transition, indicating a deeper issue in the media planning process.
Part of the challenge stems from confusion about where CTV fits within South Africa’s media landscape, which is often viewed as either an extension of digital or television, rather than as a standalone channel worthy of its own strategic focus. Digital teams frequently classify CTV as expensive video, while traditional TV buyers see it as a niche add-on. Consequently, CTV is often underrepresented in advertising strategies that should place it at the centre of their media plans.
The industry is also trapped in a self-created cycle. Brands tend to prioritise short-term metrics—like clicks and conversions—because they are easier to justify to financial officers. This habit leads to budget allocations skewed toward performance formats, stunting overall advertising effectiveness. A Dentsu study found that while digital video can influence purchasing decisions for up to 3 years, the impact of short-term performance metrics fades within months. By focusing too narrowly on immediate results, brands may miss valuable long-term opportunities.
Furthermore, while programmatic buying has made CTV more accessible, the blend of easy access with strategic effectiveness is often lacking. A purely programmatic approach risks losing the contextual placement and premium inventory that CTV offers. Brands must recognise that CTV can effectively build brand awareness while also driving measurable lower-funnel performance.
As audiences increasingly migrate to streaming services, brands must invest in CTV at a level that reflects its demonstrated ROI. Until media planning frameworks evolve to prioritise where viewers truly engage, brands will continue to forfeit potential gains in effectiveness and reach.
By embracing CTV as a core part of their media strategies, brands can capitalise on its unique advantages and strengthen their market presence.
