With connected TV (CTV) penetration in the US now at 86%, advertisers are upping their investment in the medium. A recent forecast from eMarketer projects that CTV ad spending this year will grow by about 60% over 2020 to reach $14.4 billion.
The 59.9% year-over-year (y-o-y) growth in CTV ad spend this year is the highest it’s been in the past couple of years. And, while growth is expected to slow — with projected y-o-y growth of 32.3% in 2022, 26.7% in 2023 and 21.9% in 2024 — if forecasts are realized, by 2024, ad spend on CTV will have more than doubled to $29.5 billion.
eMarketer also reports that Hulu is the benefactor of the largest portion of ad revenues from CTV of those platforms analyzed. In 2021, Hulu is expected to bring in $3.1 billion in ad revenues, compared to YouTube ($2.5 billion) and Roku ($1.58 billion). eMarketers does note that, while they currently do not publish forecasts for Paramount+ and Peacock, they foresee that the services “have potential to gain share in the CTV ad market.”
Other research shows that many marketers are shifting their budgets towards CTV advertising at the expense of linear TV and social media. Alongside this shift, other research shows that CTV ads have a positive impact on purchase decisions, and that most CTV viewers are open to sharing some personal information in order to improve their ad experience.