Connected TV

The Gap Between CTV and Linear TV Ad Spend is Closing

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The Gap Between CTV and Linear TV Ad Spend is Closing

2 Min Read

As more consumers cut-the-cord on their cable subscriptions, Connected TV advertising continues to take up a larger share of TV ad spend. In fact, according to eMarketer, the gap between ad spend on Connected TV and linear TV is closing—by 2025 they expect CTV ad revenues will be more than half of linear TV’s. This estimation comes from surveys like those taken by Advertiser Perceptions last year, which found that 56% of advertisers planned to increase their CTV spending, 42% planned to maintain, and only 2% planned to decrease their spending. They also estimated that advertisers, on average, will spend $33 million per year on Connected TV.

eMarketer also took a look at the industries which spent the most on CTV / OTT advertising last year. They cited data from TVSquared, which determined that the categories of retail, travel, and media and entertainment had the highest ad spend. And when it comes to 2022, local CTV advertising is expected to have a boost in interest from many industries, with automotive as the largest category at 15.2% of total local ad spend, followed by general services (14.5%) and restaurants (9.3%). Also expected to rise this year is political ad spend—CTV will account for 17% of total ad spend in the 2022 election cycle, reaching a whopping $1.5 billion. Ultimately, as streaming continues its rise in popularity among consumers, advertisers in industries across the board seem to be jumping to take advantage of this growing audience.

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