Linear TV ad dollars aren’t disappearing, but simply shifting from traditional pay services like cable and satellite to internet-delivered platforms, according to an Insider Intelligence report: “TV and Connected TV Ad Spending Forecasts 2023.” What do marketers need to know about the world of CTV and its ad spending forecast? Here are a few top takeaways.

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CTV Is a Rising Star
Since Insider Intelligence started tracking CTV ad spending in 2017, the channel has grown by double digits every year—including 2020, when the traditional television ad market saw declines after the global pandemic outbreak.  

• This year’s CTV spending will be $25.09 billion, which is nearly nine times more than the $2.8 billion spent in 2017.
• CTV is the fastest-growing ad format measured by the market research company, and its double-digit growth is expected to continue into 2027, the final year included in their forecast.

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The World of CTV Is Vast
CTV’s inherently varied nature gives advertisers an array of opportunities to reach engaged viewers on multiple platforms, including:

• Subscription video-on-demand (SVOD) services, such as Netflix, Amazon Prime Video and Apple TV+
• Ad-supported video-on-demand (AVOD) services, such as Facebook Watch, the Roku Channel and Samsung TV Plus
• Free ad-supported streaming (FAST) services, such as Tubi and Pluto TV
• YouTube, where CTV viewing now comprises roughly 45% of the platform’s total viewing time
• Digital live TV services like Hulu+ and YouTube TV

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Demographics Make a Difference
Millennials use CTV services the most, followed by Gen Z.. The millennial audience is nearly twice as large as CTV’s baby boomer audience. However, when it comes to linear TV, the inverse is true: boomers are the largest viewing group, followed by Gen X, millennials and Gen Zers. Since marketers are always searching for new ways to reach younger demographics, this breakdown favors CTV ad dollars and helps explain some of the spending shifts away from traditional TV.  

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US digital video ad spending overtook linear TV ad dollars for the first time in 2022, and Insider Intelligence predicts CTV will gobble up nearly 30% of the digital video ad pie this year. But consider the bigger picture: Whether advertising on a linear or digital platform, television has still broken every mold to define itself as one of the most lucrative, long-lasting and influential ad formats. 

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What does the future hold for TV in all its forms? In this fast moving industry, that remains to be seen. Whatever new platforms may arise, ER will be here to help usher it in. Whether you’re a marketer or agency looking to advertise on any screen, ER brings speed, simplicity and control to marketing and agency teams worldwide. Reach out today to learn more.