In a resounding display of the rapid growth of the advertising landscape, connected TV (CTV) has achieved an unprecedented milestone, with June witnessing a staggering $1 billion in advertising expenditure. These findings, unveiled by Vivvix, a leading ad-research company formerly recognized as Kantar, underscore the escalating dominance of CTV as a preferred platform for advertisers.
A key driver of this surge has been the remarkable performance of specific industry sectors. Household supplies and beverages have surged by an astounding 300% on a year-over-year basis, demonstrating the adaptability of CTV advertising across diverse markets. This upward trajectory can be attributed to the diverse array of streaming platforms, including Hulu, Peacock, Paramount+, Pluto, Discovery+, Max, Tubi, Roku, and the recent entrant, Disney+, which have collectively contributed to this watershed moment.
The influence of CTV extends well beyond the confines of traditional platforms, as exemplified by the substantial allocation of advertising dollars towards YouTube and its manifold properties. Notably, YouTube has secured an impressive $1.4 billion in ad spend during the same period, a testament to the platform’s formidable reach and efficacy.
Amid the broader context, Vivvix’s retrospective analysis of 2022 provides illuminating insights into the steady rise of ad-supported video-on-demand (AVOD). This segment has experienced a remarkable 79% year-over-year growth, establishing its place as a formidable contender within the digital advertising spectrum, accounting for a notable 5% of all online video consumption.
As the industry continues its forward momentum, eMarketer, a trusted authority on market trends, anticipates an even brighter future for CTV advertising. Their projections indicate a substantial 21% expansion in CTV ad spend, with the figure expected to scale to an impressive $25.9 billion in 2023. This prediction follows the successful 2022 campaign, which recorded a notable $20.69 billion in CTV advertising expenditure.
Vivvix’s meticulous analysis is underpinned by March 2023 estimates, encompassing an expansive scope of digital advertising across CTV devices. This includes an assortment of ad formats, ranging from display advertisements on home screens to in-stream video ads that grace the screens of CTVs. The platforms encompassed within this purview span the gamut, encompassing heavyweights such as Hulu, Roku, and YouTube.
In a landscape characterized by constant evolution, the exponential growth of CTV advertising expenditure reflects the inherent dynamism of the industry. As households continue to shift their consumption patterns, advertisers and marketers alike must adapt to the ever-expanding array of possibilities presented by the CTV revolution. With projections pointing skyward, the allure of CTV as an advertising platform is poised to reach new heights, reshaping the contours of the advertising industry for years to come.
