CTV ad spend soars to $26.6b amid effectiveness concerns, report

A report from Gracenote, the content data business unit of Nielsen, highlights a disconnect in connected TV (CTV) advertising strategies. While many marketers prioritize brand-building objectives, they often rely on audience-based targeting methods more suited for narrow performance marketing goals.

This approach limits scale and reduces effectiveness, with 32 percent of media professionals surveyed by Gracenote stating that they do not consider CTV a very effective channel.

CTV continues to play an increasingly important role in media plans as audiences shift to streaming platforms. The IAB forecasts U.S. CTV ad spending to reach 26.6 billion dollars this year, an increase of 12 percent compared with 2024. Nearly one in three media professionals surveyed by Gracenote allocate 40 percent or more of their budgets to CTV campaigns.

According to the report, brand awareness remains the top objective for CTV advertisers, followed by revenue growth and customer acquisition. Customer retention, typically linked to performance marketing, ranked much lower. Gracenote advises marketers to evolve their strategies by integrating content-based targeting approaches that align messaging with the programs viewers are watching rather than relying solely on audience data.

By combining contextual insights with audience reach, marketers can expand campaign scale and improve brand alignment. The report notes that program-level metadata organized through structured taxonomies can support more effective contextual targeting within CTV environments.

Jake Richardson, VP of Partnerships, Gracenote: “CTV has not delivered the scale and premium reach that marketers expect of the largest screen in the house largely based on the use of narrow targeting tactics. By taking better advantage of contextual targeting capabilities with their CTV campaigns, they have new opportunities to drive both return on ad spend and the scale they’ve been looking for.”

Gracenote’s extensive experience in entertainment metadata now supports programmatic CTV advertising through enhanced products and partnerships. These solutions use the company’s established taxonomy and content identifiers to connect ads more effectively with relevant programming.

The report is based on a survey of U.S. brand and agency executives involved in media planning and buying across industries including entertainment, telecommunications, retail, financial services, automotive, consumer goods, and health care.

The full report can be accessed here

www.gracenote.com

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