The Global Evolution of Connected TV (CTV): Exploring the UK, Europe, and Future Trends

Introduction to Connected TV (CTV)
Connected TV, or CTV, is making waves in the world of entertainment, changing how we enjoy our favorite shows, movies, and videos. Simply put, CTV refers to any television that connects to the internet, allowing you to stream content directly. This includes smart TVs with built-in internet access and external devices like Roku, Amazon Fire Stick, Apple TV, or even gaming consoles like Xbox and PlayStation.

As more people cut the cord with traditional TV and turn to on-demand streaming, CTV is quickly becoming the go-to way to watch television. And this isn’t just a trend in the U.S.; it's happening all over the globe, from the UK to Europe and beyond. In this article, we'll dive into the current CTV landscape, with a special focus on the UK and Europe, and take a look at where this dynamic industry is headed over the next five years.

The Current State of the CTV Market

Global Overview
As we move through 2024, the global CTV market is booming. The adoption of streaming services and devices is skyrocketing, and several key factors are driving this growth:

1. Shift to Streaming Services: People worldwide are moving away from traditional pay-TV to streaming platforms like Netflix, Amazon Prime Video, Disney+, and YouTube. These platforms offer massive libraries of content that appeal to every taste and preference.

2. Advanced Advertising Capabilities: CTV has transformed advertising, offering precise targeting and in-depth analytics. Advertisers can now craft messages specifically for their audience, making CTV a far more efficient platform than traditional TV.

3. Enhanced User Experience: With easy-to-use interfaces, voice search, and personalized content recommendations, CTV provides a user experience that’s tough to beat. The ability to integrate multiple streaming services into one place makes CTV the preferred choice for many households.

4. Content Diversity: CTV opens up a world of content, from blockbuster movies and hit TV shows to niche channels and user-generated videos. This variety draws in a broad audience, further fueling the growth of CTV.

5. Growing Ecosystem: The CTV ecosystem includes not just traditional streaming services but also social media platforms like Facebook and TikTok, which now have their own TV apps. Live sports and news networks are also hopping on the CTV train, offering live streaming that rivals cable TV.

Market Size and Growth Projections
The global CTV market is currently valued at about $220 billion as of 2023, with projections suggesting it could reach $350 billion by 2028. This impressive growth is fueled by the increasing adoption of smart TVs, wider internet access, and the proliferation of streaming services worldwide.

In the UK, the CTV market is particularly advanced, valued at around £4 billion ($5.2 billion) in 2023. By 2028, this figure is expected to climb to £6.5 billion ($8.5 billion), thanks to the continued demand for streaming services, the rise of ad-supported models, and advancements in CTV advertising technology.

Across Europe, the CTV market is a bit more varied, with significant differences in market size and growth rates from country to country. The European CTV market is estimated to be worth approximately €35 billion ($38 billion) in 2023, and it could grow to €60 billion ($65 billion) by 2028. Key markets like Germany, France, and the Nordics are leading the charge.

Country-Specific Market Analysis

• United Kingdom:

  • Market Size (2023): £4 billion ($5.2 billion)
  • Projected Market Size (2028): £6.5 billion ($8.5 billion)
  • Growth Drivers: The UK’s strong digital infrastructure, high smart TV penetration, and a rich tradition of public service broadcasting are key factors. The rise of ad-supported streaming and more widespread adoption of programmatic advertising will also drive growth.

• Germany:

  • Market Size (2023): €8.5 billion ($9.3 billion)
  • Projected Market Size (2028): €14 billion ($15 billion)
  • Growth Drivers: Germany’s market is robust, with a strong appetite for both global and local streaming services. The popularity of regional content, combined with high internet and smart TV adoption, makes Germany a leader in Europe’s CTV landscape. Expect significant growth in programmatic advertising here as well.

• France:

  • Market Size (2023): €6 billion ($6.6 billion)
  • Projected Market Size (2028): €10 billion ($11 billion)
  • Growth Drivers: The French market thrives on a strong demand for French-language content and a competitive mix of local and global streaming services. The growth of ad-supported CTV will play a crucial role in expanding this market.

• Nordic Countries (Sweden, Denmark, Norway, Finland):

  • Market Size (2023): €5 billion ($5.5 billion)
  • Projected Market Size (2028): €8 billion ($8.7 billion)
  • Growth Drivers: High digital literacy and widespread streaming adoption characterize the Nordics. Local platforms like Viaplay, alongside global giants, contribute to a competitive market. The region’s focus on sustainability and digital innovation will continue to push CTV technology forward.

• Spain and Italy:

  • Market Size (2023): €4 billion ($4.4 billion) combined
  • Projected Market Size (2028): €6.5 billion ($7.1 billion) combined
  • Growth Drivers: In Southern Europe, improving internet infrastructure and growing consumer interest in streaming services are driving CTV adoption. Local content, especially sports and entertainment, plays a significant role, along with the gradual shift to digital advertising.

Future Trends in the CTV Market

Looking ahead, several key trends will shape the CTV market globally and within the UK and Europe:

1. AI and Machine Learning Integration: Expect smarter content recommendations, personalized ad experiences, and better predictive analytics. These technologies will make CTV even more tailored to individual preferences, particularly in diverse markets like the UK and Europe.

2. Expansion of Ad-Supported Streaming Services: With more streaming services entering the fray, ad-supported models will become more common, offering both subscription-based and free-to-watch tiers. This will create new opportunities for advertisers, especially in regions where free-to-air TV has been traditionally popular.

3. Growth of Programmatic Advertising: As data-driven advertising solutions gain traction, programmatic advertising will play a larger role in the CTV ecosystem, allowing for more targeted and efficient ad campaigns.

4. Convergence of Linear TV and CTV: Traditional TV and CTV are blending, with broadcasters offering hybrid models that combine live TV and on-demand streaming. This will create a more seamless viewing experience, where viewers can easily switch between live broadcasts and streaming content.

5. Enhanced Measurement and Attribution: Advertisers will increasingly demand better tools to measure the effectiveness of their campaigns across CTV and digital channels, ensuring a clearer view of ROI and better compliance with local regulations.

6. Emergence of New Content Formats: CTV platforms are likely to experiment with interactive TV shows, augmented reality experiences, and live commerce. In Europe, these innovations will need to align with local tastes and cultural preferences to succeed.

7. Global Expansion and Localized Content: As CTV adoption grows, there will be a stronger emphasis on content that resonates with local audiences, with advertisers tailoring their campaigns to reflect regional cultures and preferences.

8. Privacy and Data Security Concerns: As CTV platforms collect more user data, ensuring privacy and security will be critical. Compliance with regulations like GDPR in Europe will be essential to maintaining user trust.

9. 5G and Connectivity Advancements: The rollout of 5G will enhance CTV capabilities, offering faster streaming, lower latency, and better video quality, which will be crucial for delivering high-resolution content and immersive experiences.

10. Continued Rise of Niche Streaming Services: Niche streaming services that cater to specific interests or communities will continue to grow. In Europe, with its cultural and linguistic diversity, these services will play a vital role in the CTV landscape.

Conclusion
Connected TV is changing the way we watch TV and interact with brands, not just in the UK and Europe, but all around the world. As more people adopt CTV, driven by new technology, shifting consumer habits, and the demand for personalized experiences, the television and advertising landscapes will be forever changed.

Over the next five years, CTV will become even more ingrained in our media consumption, offering viewers more choices, flexibility, and personalization than ever before. For advertisers, the opportunities to connect with audiences in meaningful ways will expand, thanks to data-driven, targeted campaigns.

Of course, the CTV market isn’t without its challenges. Navigating complex regulations and ensuring data privacy will be critical for success. But as the industry evolves, there’s no doubt that CTV has a bright future ahead, promising a new era of television that’s more connected, personalized, and immersive than anything we’ve seen before.