Connected TV (CTV) advertising broke records after ad spend reached $1 billion in June, according to a report by ad-research company Vivvix, formerly known as Kantar.
Growth categories included household supplies and beverages — which rocketed by more than 300% year-over-year. Meanwhile, verticals like pets, cosmetics and beauty didn’t trend as highly.
Why we care. CTV ads have been exploding in popularity as more TV watchers cut the cord and adopt streaming services. In this environment, CTV allows advertisers to reach audiences where they are. If your brand is interested in finding out more about CTV, explore MarTech’s ongoing coverage here.
Promising forecast for YouTube. The Google-owned platform generated $1.4 billion in ad spend across its properties.
- Based on this performance, Vivvax predicts that ad spend will continue to grow, particularly as non-linear properties continue to capture more viewership.
Looking ahead. CTV advertising is expected to grow by 13.2% globally in 2023 to $25.9 billion, according to GroupM’s mid-year forecast.
- In the U.S., CTV advertising is expected to grow by 21.2% year-on-year this year, Insider Intelligence reported.
What Vivvix is saying. “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,” said Andrew Feigenson, Vivvix CEO.
The report. The research investigated how ad dollars are spent across a growing list of streaming platforms, such as Discovery+, Max (formerly known as HBOMax), Roku and YouTube. Read the Vivvix report in full for more information.
Between the lines. While CTV is growing, it’s doing so three-times slower than retail media at a similar point in its development, according to a new study from WARC Media.
“The market is fragmented, and CTV ad investment is mainly being drawn from existing budgets,” said Alex Brownsell, WARC Media’s head of content, in a release. “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.”
Dig deeper: Why we care about connected TV and OTT advertising
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