[eMarketer] How advanced TV is wooing addressable- and automation-hungry advertisers

As linear technology improves and consumers adopt more digital TV alternatives, the TV market is cruising toward a more “advanced” future. Advertisers are amping up spend accordingly.

CTV ad spending, for example, has almost tripled since before the pandemic. At $18.89 billion, the CTV advertising market is less than a third of the size of its linear TV counterpart, which will see $68.35 billion. But while linear TV ad spending is trending downward, CTV ad spending is growing faster than that of any other digital channel except for social video. By the end of 2026, CTV outlays will have more than doubled to reach $38.83 billion.

Practically all the inventory is addressable. Among agency and marketing professionals, precision audience targeting was the biggest perceived advantage of CTV and streaming advertising – and the top reason for increasing investment, according to a March 2022 survey commissioned by Premion and conducted by Advertiser Perceptions. As more streaming platforms introduce ad-supported tiers, advertisers will get access to more streaming viewers in more places.

And CTV advertisers are leaning into automated purchasing. Pre-pandemic, about half (53.5%) of CTV ad dollars flowed through programmatic pipes. This year, nearly three-quarters (74.4%) of CTV ad spending will transact programmatically.

According to eMarketer, advertisers will spend $6.90 billion on linear programmatic ads this year, up 27.4% year over year (YoY), but still less than half of the $14.04 billion that will be spent on programmatic CTV.

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