The advertising landscape is changing rapidly, and Connected TV (CTV) is leading this change.
According to eMarketer, CTV will reach a similarity with linear TV in terms of ad spend by 2028.
This year, U.S. advertisers are expected to spend $28.75 billion on CTV, an impressive 18.8% increase over the previous year.
CTV: The new favorite of advertisers.
With more than 233 million monthly viewers in the United States, CTV has surpassed linear TV in audience share.
Ross Benes of eMarketer stresses that CTV is no longer just an add-on, but a dominant force in reaching audiences.
Growth and projection of CTV.
The growth of CTV investment has been exponential, going from a 10% market share five years ago to a level almost equal to that of linear TV today.
This shift reflects a growing trend towards streaming platforms and a move away from traditional television.
Future of CTV advertising
Streaming services such as Hulu, YouTube, Amazon, Roku and Peacock are expected to generate more than $1 billion each in advertising sales this year.
Amazon Prime Video, in particular, will see significant growth of 125%, driven by its new ad-supported tier.
Key points:
- Linear TV:
- Linear TV refers to traditional programming broadcast on television channels.
- Although it has experienced a decline in advertising investment due to the rise of digital, it is still relevant for certain advertisers and audiences.
- Linear TV investment is expected to remain stable or decrease slightly in the coming years.
- Connected Television (CTV):
- CTV refers to the viewing of TV content through Internet-connected devices, such as Smart TVs, streaming devices and apps.
- It has experienced significant growth due to its ability to reach targeted audiences and deliver personalized ads.
- Investment in CTVs is expected to continue to increase in the coming years.
- Equilibrium in 2028:
- According to forecasts, by 2028, advertising investment in linear TV and CTV will be almost balanced.
- This reflects advertisers' adaptation to changing consumer preferences and the evolving media landscape.
In summary, advertising spend is evolving towards a balance between traditional TV and CTV, offering opportunities to reach diversified audiences.
