Rising CTV Ads: A New Frontier for Advertisers
While mobile devices continue to dominate consumer digital time, connected TV (CTV) is rapidly emerging as a key player in the advertising space. As viewers increasingly opt for ad-supported streaming options, CTV is closing the gap, offering new opportunities for advertisers.
Connected TV (CTV) is rapidly emerging as a key player in the advertising space. While mobile devices continue to dominate consumer digital time, CTV is closing the gap, offering new opportunities for advertisers. According to recent data, US adults now spend an average of 2 hours and 15 minutes per day on CTV, marking an 8.3% year-over-year increase.
Despite this growth, CTV still lags in advertising spend, primarily due to limited ad inventory and high costs. However, this is expected to change as platforms like Netflix and Disney+ expand their ad offerings, and free ad-supported TV (FAST) channels such as Tubi and Pluto TV gain traction.
In 2024, CTV is projected to account for just $0.13 of US digital ad spend per hour of digital time per adult, compared to mobile’s $0.51, as outlined in the “Time Spent With Connected Devices 2024” report.
Yoram Wurmser, a leading industry analyst, emphasized the importance of focusing on audience behavior rather than the device itself. “It’s essential to follow your audience and understand how they consume content,” Wurmser stated. “While mobile and CTV remain dominant, advertisers should also consider that some audiences may lean toward desktop or other platforms.”
Advertisers should also be mindful of other channels when allocating their digital budgets:
Digital Audio: US adults spend 1 hour and 24 minutes per day with digital audio, yet this channel receives the lowest ad spend per user, at just $36.05 annually. Wurmser highlights this as a missed opportunity, especially as hours spent listening on phones and in cars present untapped potential.
Apps: With over 90% of mobile time spent in apps, advertisers must identify the specific apps where their target audiences are active. “Mobile continues to attract significant ad spend, and focusing on where your audience is within apps will yield the best results,” Wurmser noted.
Tablets: Although US adults spend 54 minutes daily on tablets, this figure is expected to decline by 2025. However, Wurmser advises advertisers not to overlook this device, as it still holds value for certain demographics.
Emerging Channels: For those exploring new advertising avenues, channels such as automotive consoles remain underdeveloped but are poised for growth. Wurmser encourages advertisers to stay informed and consider early adoption as these channels evolve.
Advertisers are advised to stay agile and prioritize targeting their audiences across multiple devices while keeping an eye on emerging platforms that could offer new opportunities shortly.
