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US connected TV advertising will approach 60% growth by year-end

The forecast: Connected TV (CTV) ad spend will reach $14.44 billion this year, up 59.9% from 2020.

Dive deeper:

  • According to Peter Vahle, eMarketer senior forecasting analyst at Insider Intelligence, "Demand for CTV advertising has rebounded strongly this year as marketing budgets return to normal and ad inventory increases thanks to the launch and expansion of new ad-supported streaming services. CTV ad prices are also significantly higher than last year, which has driven up the overall spend."
  • At this point, all major networks have ventured into CTV. Disney has Hulu, ViacomCBS has Pluto TV, and Fox has Tubi. YouTube and Roku also command a large share of CTV revenues, though these competitors differentiate themselves as digital-first companies.
  • Hulu makes more ad revenues from CTV than any other company we forecast, collecting $3.13 billion in 2021. It's followed by YouTube at $2.54 billion and Roku at $1.58 billion.
  • We don't yet publish forecasts on CTV newcomers like Paramount+ and Peacock, but these players have major potential to gain share in the CTV ad market.
  • CTV ad revenue growth will slow following this year's spike. However, CTV ad spend will continue to gain share of overall digital ad spending through 2025, passing 10% by 2024.

Looking ahead: US CTV ad spending will more than double by 2025, soaring past $30 billion.