Connected TV (CTV) continues to reshape the advertising landscape, and recent data underscores this massive shift in media investments. According to a November 2024 study from Pixability, 58% of US media agency professionals plan to increase their CTV ad spending, while nearly a third (32%) intend to scale back their investments in traditional linear TV. This trend reflects the evolving preferences of both advertisers and audiences, pushing brands to rethink their media strategies.
The Growing Dominance of CTV
It’s no surprise that CTV ad spending is on the rise. Forecasts predict a 15.8% growth in CTV investments this year, reaching a staggering $33.4 billion. This growth aligns with changing viewer behaviors, as more households cut the cord and shift toward streaming services. In fact, by 2025, nearly 70% (69.2%) of the US population is expected to be CTV users.
As advertisers follow the audience, CTV provides unparalleled targeting capabilities, real-time analytics, and the ability to serve engaging, interactive ads. Compared to linear TV’s broad reach and limited targeting, CTV enables brands to connect with niche audiences more effectively and measure campaign performance with precision.
Why Agencies Are Prioritizing CTV
Several factors drive the increased investment in CTV:
- Advanced Targeting: CTV offers robust audience segmentation, enabling advertisers to target viewers based on demographics, interests, and behaviors.
- Data-Driven Insights: Real-time performance metrics allow for continuous optimization and better ROI.
- Flexible Ad Formats: From standard video ads to interactive and shoppable content, CTV provides a diverse range of creative possibilities.
- Cross-Device Reach: CTV campaigns integrate seamlessly with other digital channels, creating cohesive, multi-touchpoint strategies.
As linear TV viewership declines, the shift toward CTV is a natural progression. Media agencies recognize the value of meeting consumers where they are—on streaming platforms—and investing in formats that offer more measurable and impactful engagement.
Ready to Elevate Your CTV Strategy?
At KEEN, we specialize in programmatic CTV/OTT media planning and buying, helping brands maximize their reach and ROI. Whether you’re looking to expand your CTV presence or refine your current strategy, our team of experts is here to guide you every step of the way.
Contact us today to learn how we can help you harness the power of connected TV advertising and drive results that matter.
