CTV Report
Connected TV Is the Fastest Growing Ad Channel
by Frankie Karrer2 min read
Abstract
- CTV is the fastest growing ad channel, with ad spend surging past search, social media, and retail media.
- CTV consumption in the U.S. has nearly doubled, with average daily viewing time increasing from 1 hour and 22 minutes in 2020 to 2 hours and 37 minutes by 2026.
- In response to shifting audience habits, 61% of advertisers plan to boost their CTV ad budgets and take advantage of the channel’s precise audience targeting.
- Advertisers still face challenges on CTV: 39% of CTV and OTT advertisers cite ad transparency concerns due to market fragmentation.
We’ve known Connected TV has been growing fast, but now EMARKETER has identified it as the fastest-growing ad channel in 2024 — with ad spend surpassing those of search, social, and retail media. The reason is clear: advertisers are following consumer behavior. Two-thirds of the U.S. population use CTV and spend more time there than ever. In fact, average daily watch time is expected to grow from 1 hour and 22 minutes in 2020 to 2 hours and 37 minutes by 2026. In response, 61% of advertisers say they plan to increase their CTV ad budgets to reach this expanding audience.
CTV offers clear advantages over traditional TV, including precise audience targeting, real-time measurement, and a 98% video completion rate. But it still faces a number of challenges, with 39% of advertisers citing concerns about transparency in ad placements and the lack of standardized measurement across platforms. To combat these issues, many platforms are turning to new innovations — Amazon Prime’s ad-supported tier is adding new inventory, pause ads are introducing creative engagement opportunities, and smart TV brands like LG and Samsung are enhancing their platforms for interactive and shoppable experiences.
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