Connected TV (CTV) advertising is growing rapidly, with ad spend reaching an astonishing $1 billion in June 2020. This was according to a report by ad-research company Vivvix, formerly known as Kantar, which found that growth categories included household supplies and beverages — rocketing by more than 300% year-over-year. This growth in CTV ads is largely attributed to increasing numbers of TV watchers cutting the cord and adopting streaming services.
The report also found that Google-owned platform, YouTube, generated $1.4 billion in ad spend across its properties. Vivvix predicts that ad spend will continue to grow as non-linear properties capture more viewership.
GroupM’s mid-year forecast estimates that CTV advertising will grow globally by 13.2% in 2023 to $25.9 billion, and by 21.2% year-on-year this year in the U.S., according to Insider Intelligence.
Vivvix CEO, Andrew Feigenson, said: “We are confident that more brands will continue to allocate more of their advertising budgets to CTV and other digital media, which will affect traditional TV advertising.”
However, a new study from WARC Media found that CTV is growing at a slower rate than retail media at a similar point in its development. Alex Brownsell, WARC Media’s head of content, said: “The market is fragmented, and CTV ad investment is mainly being drawn from existing budgets. 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.”
As more TV watchers cut the cord and adopt streaming services, CTV advertising is on the rise. Ad spend hit a record-breaking $1 billion in June, and is expected to continue to grow in the future according to predictions from GroupM and Vivvix. Google-owned platform YouTube was a major contributor to this growth, generating $1.4 billion in ad spend.
However, a study from WARC Media found that CTV is growing at a slower rate than retail media at a similar point in its development. This suggests that more work must be done to help CTV reach its full potential and to draw ad dollars from beyond the current confines of the TV market.
If your brand is interested in finding out more about CTV, explore MarTech’s ongoing coverage and read the Vivvix report in full for more information.
Originally reported by Martech: https://martech.org/ctv-ad-spend-hits-record-breaking-1-billion-in-june/
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