Staying ahead of the curve: what eMarketer's TV and Connected TV ad spending forecast means for marketers

The gap between traditional and digital TV advertising is narrowing rapidly. With the ongoing decline in linear TV ad expenditure, Connected TV (CTV) is swiftly stepping in to occupy the space. The latest TV and Connected TV Ad Spending Forecast from eMarketer delves into the performance of TV and CTV ad spending, offering insights for both ad purchasers and vendors. Here are a few of our biggest takeaways from the report.

The ascendancy of CTV advertising

According to eMarketer's report, CTV ad spend is undergoing a growth surge, surpassing traditional linear TV advertising by a significant margin. The forecast reveals that from 2023 to 2027, total spending in the combined TV and CTV ad market is anticipated to rise by $12.20 billion. This growth is primarily attributed to the burgeoning popularity of CTV platforms, providing advertisers with fresh avenues to engage with their target demographics.

Marketer’s Takeaway: For digital advertisers looking to expand their reach and drive ROI, investing in CTV advertising is increasingly lucrative. By tapping into the expanding audience base of CTV viewers, advertisers can amplify their messaging and foster meaningful engagement effectively.

Linear TV and CTV paths are diverging

The eMarketer report underscores a notable disparity between traditional linear TV and CTV advertising trajectories. Viewers are increasingly watching more streaming content, with time spent on streaming platforms surpassing linear by 22%. This dichotomy underscores shifting consumer preferences toward on-demand and streaming content consumption.

Marketer’s Takeaway: Advertisers must reallocate budgets to align with evolving consumer habits. By shifting resources from traditional linear TV to CTV advertising, brands can capitalize on the burgeoning viewership of streaming platforms and forge deeper connections with their target audiences.

Amazon's influence on CTV advertising

Amazon’s CTV monetization is set to grow by 125.0% to $3.13 billion in 2024 and continue to grow at a double-digit YoY rate in 2025. With the introduction of an ad tier for Prime Video, Amazon is poised to propel a surge in CTV ad spending.

This strategic move underscores Amazon's commitment to expanding its advertising offerings and capitalizing on the escalating demand for CTV inventory.

Marketer’s Takeaway: Advertisers should closely monitor Amazon's advancements in the CTV advertising domain and explore avenues to leverage its platform for their campaigns. By including Amazon in their media mix, advertisers can access a vast audience pool and leverage innovative ad targeting capabilities.

Anticipating the future of CTV advertising

Ironically, if there is a constant in TV advertising, it is change. As advertising-based video on demand (AVOD) eclipses traditional pay TV viewers and even subscription-based video on demand (SVOD) and CTV ad spending surpasses linear TV, advertisers must adapt their strategies to remain ahead of the curve. Our data shows that 33% of households are considering ad-supported streaming services as a more cost-friendly alternative to subscription services (SVOD).

Marketer’s Takeaway: To thrive in the competitive digital advertising landscape, advertisers must embrace CTV advertising as a pivotal component of their media mix. By integrating CTV into their campaigns and harnessing data-driven insights, advertisers can foster engagement, bolster brand visibility, and ultimately achieve their business objectives.

In summary, the eMarketer report illuminates compelling growth prospects and opportunities within the CTV landscape. But that landscape also has bad actors, false promises, and fool’s gold – marketers need a trusted expert that can deliver a comprehensive programmatic strategy built around transparency, efficiency, and performance. At MiQ, we specialize in leveraging data-driven insights and innovative technologies to help advertisers harness the power of CTV advertising effectively.

Learn more about MiQ and how we help advertisers unlock the full potential of their CTV and stay ahead of the curve in the ever-evolving digital advertising ecosystem. Contact MiQ today.