Perion, a publicly-traded company that offers an omnichannel adtech stack through divisions like Undertone and Hivestack (acquired late last year), has published a blog post about the growth of its connected TV (CTV) business. The company shares that it saw a 42% year-over-year increase in CTV revenue in the second quarter.
So, why the growth?
Perion, of course, connects the jump to the overall interest in CTV advertising. The company also attributes the growth to its CTV solutions suite, which includes Dynamic Creative Optimization (DCO) and contextual technology for CTV, along with unique interactive ad formats, like pause ads and live event native ads.
Why This Matters:
Although retail media has overtaken it as the fastest-growing channel, CTV continues to chug along, attracting more spend as viewing habits evolve and more ad-supported services become available. According to Emarketer, CTV ad spending in the US alone will hit about $41 billion in 2027, up from $25 billion last year.
Research also shows that CTV advertising is less expensive and more efficient — thanks to better data and more targeting capabilities — than traditional TV ads. This is powering the ongoing shift of linear TV budgets to streaming platforms.
Experts React:
In the company’s blog post, Tal Jacobson, Perion’s CEO, talked up their value in the current market: “As the TV landscape becomes more fragmented, we benefit by enabling advertisers to leverage advanced CTV opportunities. We focus on premium CTV inventory, from YouTube CTV, the second-largest premium CTV platform in the US, to Max, Peacock, Disney+, Hulu, Netflix, DirectTV, and more.”
On their Q2 earnings call, Jacobson added that Perion’s “CTV solutions are showing great momentum and are adopted by more and more brands.” Jacobson also said that Perion is “leveraging [its] advanced location-based capabilities to drive meaningful results for advertisers.”
Our Take:
Whether it’s Perion’s growth or LG Ads launching a screensaver ad experience, the value in CTV is delivering ad experiences that are inherent to the format, and that align closely with viewer behavior. Pause ads are another good example.
Ultimately, traditional TV strategies and campaigns don’t translate well to streaming. Streaming audiences want shorter ad pods and are less tolerant of intrusive ad breaks compared to traditional TV viewers, for example. CTV demands tailored solutions. Companies that deliver on this opportunity are better positioned to succeed in the market.
