Connected TV (CTV) ad spend is set to reach a record high of $25.9 billion globally this year, a 13.2% increase year-over-year according to a new study from WARC Media. This is a promising sign for CTV, but its growth rate falls short of that of retail media networks (RMNs) and YouTube.
The report found that CTV is growing at a three-times slower rate than retail media at a similar point in its development. CTV hit the $10 billion mark in 2019, while retail media did so in 2015. The study also revealed that YouTube’s projected revenue is 17.4% greater than that of the entire CTV ecosphere.
Advertisers are largely taking money from the linear TV budget to spend in CTV, which doesn’t reflect the new value CTV can potentially create for them. The market is larger, and has been around longer, than some might realise. CTV (OTT and smart TVs included) offer different experiences to customers than traditional linear TV.
WARC Media’s head of content, Alex Brownsell, commented that “more work must be done to help CTV to realize its full potential and ensure that media owners are able to attract ad dollars from beyond the current confines of the TV market”. Video is an increasingly important marketing channel for retailers, as seen by the growth of RMNs in the last two years, and CTV is a key part of this.
Originally reported by Martech: https://martech.org/ctv-ad-spend-is-growing-but-not-like-retail-media/
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