Why Connected TV Is the Fastest-Growing Ad Channel

Why Connected TV Is the Fastest-Growing Ad Channel

Why Connected TV Is the Fastest-Growing Ad Channel

CTV isn’t just a buzzword. It’s the biggest consumer and advertising shift in video media in decades. In the United States, both viewer engagement and advertiser spending on Connected TV are rising sharply, outpacing linear TV and transforming how brands reach audiences.

At ConnectedIQ, we see this trend first-hand, and it’s reshaping media strategies across industries.

Americans Are Watching More CTV Than Ever

Traditional TV viewing is declining, while CTV usage continues to surge across households:

This shift isn’t subtle, it’s structural. Ad-supported streaming is now a primary mode of consumption, with many viewers choosing free or ad-tier content over subscription only models.

Advertisers Are Following the Audiences

As viewers flock to CTV, advertisers are reallocating their media investments to match. And spend is climbing... fast.

CTV Ad Spend Is Growing Rapidly

  • In 2024, U.S. CTV ad spending is projected to reach nearly $29.3 billion, up more than 18% year-over-year.
  • By 2027, CTV ad spend is forecast to surpass $40 billion, a dramatic rise from just a few years ago.
  • Other industry estimates suggest U.S. CTV ad spend could hit $47 billion by 2025 — showing how quickly brands are reallocating budgets.

This growth reflects a broader media shift: CTV is one of the few channels where planned ad spending is increasing consistently year-over-year, while investment in traditional linear television declines.

Why Brands and Marketers Are Investing in CTV

CTV doesn’t just deliver audiences , it delivers measurable impact:

Precision Targeting & Better Performance

Unlike linear TV, CTV allows advertisers to:

  • Target viewers based on demographics, interests, and behavior
  • Measure outcomes with digital-level reporting
  • Optimize campaigns in real-time

This means higher relevance and reduced wasted media spend, something marketers increasingly value.

Advertisers Are Increasing Budgets

  • 75% of U.S. advertisers are planning to increase their CTV spend in 2024, illustrating confidence in the channel’s effectiveness.
  • A majority of marketers now include CTV as part of their omnichannel advertising strategies due to its reach and performance.

CTV ads also tend to achieve higher view-through and completion rates than many online formats, making them attractive for brand-building and direct response campaigns alike.

What This Means for Brands Today

The evidence is clear: consumer behavior has shifted, and advertising dollars are following.

If your brand or agency hasn’t yet built a CTV strategy, the opportunity isn’t just about keeping up, it’s about gaining competitive advantage:

  • Access premium, engaged audiences at scale
  • Measure and optimize campaigns with precision
  • Integrate CTV into omnichannel plans for maximum ROI

At ConnectedIQ, we help brands navigate this evolving landscape, combining CTV expertise, data insights, and strategic media planning to deliver outcomes that align with business goals.

Connected TV isn’t a future trend , it’s here, and it’s reshaping media and advertising.

With rising consumption, growing ad budgets, and advancing technology, CTV is now a central pillar of modern marketing strategies.

The question isn’t whether CTV matters anymore.

It’s how well you’re using it.