US CTV ad spend growth slows but remains strong

Article by Alexandra Samet  | Jul 25, 2023
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US CTV ad spend growth slows but remains strong
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Connected TVs
United States

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US Connected TV (CTV) Ad Spending, 2021-2027 (billions, % change, and % of digital ad spending)
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Key stat: US connected TV (CTV) ad spend will grow 63% between this year and 2027, for a total of $40.90 billion, according to our forecast.

Beyond the chart:

  • We downgraded our October 2022 CTV estimate, due to “adverse macroeconomic conditions and challenges in digital ad targeting and measurement,” according to our analyst Paul Verna.
  • Still, marketers know the value of investing in CTV: We forecast the channel will grow from $25.09 billion in 2023 to $40.90 billion in 2027. This is especially true as linear TV ad spend continues to fall off, with an expected decline from $61.31 billion to $56.83 billion during that same period.
  • Time spent with CTV is growing as a portion of overall time spent with digital. CTV will account for over half of the time spent on digital video, surpassing mobile and desktop video combined this year.

Use this chart:

  • Understand how to leverage your CTV ad spend budget.

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Methodology: Estimates are based on the analysis of various elements related to the ad spending market, including macro-level economic conditions, historical trends of the advertising market, historical trends of each medium in relation to other media, reported revenues from major ad publishers, estimates from other research firms, data from benchmark sources, consumer media consumption trends, consumer device usage trends, and eMarketer interviews with executives at ad agencies, brands, media publishers, and other industry leaders