Connected TV (CTV) advertising in the UK is poised for significant growth in 2024/2025, as streaming services continue to outpace traditional TV. According to recent forecasts from IAB UK, CTV ad spend is expected to surpass £1.2 billion this year, driven by the widespread adoption of streaming and changing media habits. With nearly 20 million UK households now equipped with a CTV device, advertisers are capitalizing on this platform to deliver highly targeted and relevant ads, reaching audiences more precisely than ever before. As traditional TV viewership declines, brands are turning to CTV to engage with viewers who prefer on-demand, personalized content.

CTV targeting works by leveraging a combination of data and technology to deliver ads tailored to individual viewer preferences and behaviours. Unlike traditional TV, where ads are presented to a broad audience, CTV uses data collected from viewers’ streaming habits, demographic information, and device usage to serve ads that are relevant to their interests. Advertisers can use this data to target specific audience segments, such as viewers who frequently watch musical content or those who have shown interest in theatre-related programming. This approach ensures that ads are not only seen by the right people but also delivered at optimal times, enhancing the likelihood of engagement.

This shift presents exciting opportunities for sectors like the arts to connect with broader, more engaged audiences. For instance, the West End musical “Six” ran a successful CTV advertising campaign in October 2023. The campaign targeted viewers interested in similar content on streaming platforms, resulting in a 25% increase in ticket sales and heightened audience engagement. By using tailored ads on ITVX and YouTube, “Six” showcased trailers, behind-the-scenes footage, and exclusive interviews, effectively driving sales and raising awareness about the production.

BARB’s latest data highlights that streaming now constitutes over 30% of TV consumption in the UK, with platforms like YouTube, ITVX, and All 4 providing valuable space for arts advertisers. Musical theatre companies can leverage this trend by targeting ads to viewers who engage with related content, enhancing visibility and generating buzz around upcoming shows.

With more than 70% of UK advertisers planning to boost their CTV budgets, as reported by Thinkbox, arts and entertainment brands are well-positioned to benefit from this growth. A strategically placed, visually compelling ad for a major West End production can effectively reach and engage potential audiences, helping the industry remain relevant in an increasingly digital world.