The CTV ad market has risen to the point where this year’s upfront spending will equal the whole amount spent on CTV three years ago. Streaming providers are seeing an increase in upfront investment. According to eMarketer, upfront CTV ad expenditure will increase by 34.6% to $6.41 billion this year. This is roughly how much was anticipated to be spent on total CTV advertising in 2019 based on eMarketers‘ initial forecast.
Ad Spending on Connected TV (CTV) in the United States, 2019-2023 (billions, percent change, and percent of upfront digital video ad spending)
In the same way that the upfront digital video estimate incorporates ad spending committed in advance from the TV upfronts and IAB NewFronts, eMarketer’s upfront CTV video ad expenditure projection does. A component of the upfront digital video estimate is the upfront CTV estimate. Their CTV estimate is confined to digital advertising that shows on TV screens, including internet-enabled smart TVs and TVs that connect through external devices like Roku sticks and video gaming consoles. The digital video estimate is platform agnostic. The upfront CTV video ad expenditure forecast is based on the calendar year, the same as their digital video ad spending estimate.
This year, CTV will account for more than two-thirds of all upfront digital video ad expenditure in the United States for the first time. In other words, streaming providers receive the vast majority of upfront digital video dollars. While CTV isn’t quite the same as digital video, it consumes an increasing portion of digital spending. Approximately one-third of overall CTV ad spending is spent upfront. CTV ad spending in the United States will reach $18.89 billion in 2022.
To access this report, visit eMarketer here.