CTV ad spending keeps rolling, marketers shift their budgets
In 2024, CTV ad spend in the U.S. was expected to surpass 30 billion U.S. dollars, marking an increase of 17 percent from the previous year. Spending on connected TV might accelerate even further in the upcoming years. According to the latest projections, expenditure will exceed 40 billion U.S. dollars by 2027. As a result, CTV will account for more than five percent of ad spend, highlighting the ever-expanding role that this new era of television has come to play in the digital advertising world.Nearly four out of 10 marketers planning to increase their CTV ad spend for 2024 said they were doing so by reallocating budgets from digital TV. Audience targeting capabilities constituted the main reason for shifting media budgets from linear TV to CTV and OTT. On top of that, advertising on connected TVs allows marketers to target audiences based on demographics, location, viewing history, and preferences, without being constrained by TV broadcasting schedules or ad pricing limitations. When it came to the leading challenges related to CTV, marketers cited brand safety and reaching relevant audiences.