Precision, scale, and addressability are no longer theoretical promises but everyday realities. Once a subscription-only haven for ad-free viewing, CTV is now a key driver of digital advertising’s growth, thanks in large part to the widespread adoption of ad-supported models and advances in programmatic infrastructure.
The shift is underscored in the IAB’s Measuring the Digital Economy report, which highlights CTV as a critical pillar of digital media’s transformation. In 2023, CTV ad spend surpassed $20 billion for the first time, with a 16% year-over-year increase in 2024 and a projected 13% jump in 2025—more than double the growth rate of total media spend.
This momentum reflects a larger behavioral shift. Streamers like Netflix and Amazon Prime Video, long resistant to ads, have embraced hybrid models. Netflix’s ad-supported tier—introduced just two years ago—now accounts for over half of new subscriber signups.
Amazon's move to introduce ads in 2024 brought 115 million new viewers into the addressable TV fold nearly overnight. In 2024, Prime Video secured over $1.8 billion in advertising commitments during its upfront event, surpassing expectations. Analysts projected that Amazon's ad revenue could reach between $3.5 billion and $4 billion in 2025, highlighting the platform's growing influence in the advertising sector.
2024 also marked a turning point in how CTV inventory is bought. Disney, Paramount, Roku, and others launched self-serve, programmatic ad platforms, bringing the ease and speed of digital buying to the largest screen in the home.
This mirrors the ad ecosystem built around search and social, and opens up the premium TV landscape to small and mid-sized businesses that previously couldn’t afford a seat at the table. Generative AI is further accelerating this shift by reducing creative production costs and timelines.
Live programming, long the stronghold of traditional broadcast, is also migrating to streaming. The Oscars streamed live outside of the pay-TV ecosystem for the first time in 2024, while select NFL games became exclusive to digital platforms. By 2025, every top-ranked Nielsen show will be available through stand-alone streamers.
For marketers, the implications are clear. CTV is no longer just an experimental line item—it’s a must-have channel with real reach, rich data, and new creative potential. Enhanced geographic and demographic targeting, coupled with programmatic buying and real-time optimization, make it a rare mix of brand-building scale and performance precision.
Platforms like Comcast’s “Universal Ads,” which enables SMBs to place ads across publishers like Fox, A+E, and AMC through a single interface, demonstrate how CTV is lowering operational and financial barriers to entry. This was a pivotal shift from traditional, direct-sold TV ad inventory to a digital-first model where brands (including SMBs) can now:
- Directly access ad space via self-service dashboards.
- Target audience segments using first-party data (e.g., behavior, demographics, interests).
- Bid programmatically in real time.
- Monitor and optimize campaigns on the fly.
For larger brands, this democratization signals a more competitive landscape—and a pressing need to rethink creative strategies and measurement frameworks accordingly.
As linear TV continues its decline, and more premium live content shifts to streaming, CTV is not just growing—it’s redefining what television advertising can be. The market has matured. The infrastructure is ready. Now it’s up to marketers to move.
