Had a great discussion with Siddharth Puri ☕️ this week around CTV ad dollars prediction and what's next? Have been thinking and speaking with people scaling in CTV space at Agency/OTT/OEMs level. Here are a few key trends driving the shift and what they could mean for digital ad dollars by 2025:
Retail Media Networks and CTV-
The intersection of retail media and CTV is blurring the lines between commerce and content. Retailers are building their own ad platforms on CTV, enabling brands to target shoppers on larger screens. This could mean a 25% increase in ad dollars flowing into retail media-driven CTV campaigns by 2025.
New Metrics and Cross-Platform Attribution-
As brands demand more transparency and accurate measurement of CTV campaigns, new cross-platform attribution models will emerge, linking CTV exposure to in-store or online purchases. This will likely push an additional 15% of ad dollars into CTV as brands trust its ability to deliver tangible business results.
CTV as a Full-Funnel Solution-
CTV is no longer just a TOFU awareness driver. With better targeting capabilities and data-driven strategies, brands are leveraging it for full-funnel marketing, from awareness to conversion. This shift is expected to increase CTV ad spend by over 20% in 2025, with performance marketers and brand teams working more closely than ever before.
Impact of AI and Machine Learning in CTV-
The integration of AI in CTV ad buying is creating more efficient, real-time optimizations for advertisers. With machine learning, brands can dynamically adjust campaigns based on viewer behavior. By 2025, expect AI-powered CTV advertising to drive higher ROI and shift ad dollars from traditional channels into more data-rich CTV environments.
Growth of Ad-Supported Streaming Services-
As more streaming platforms adopt ad-supported tiers, the CTV ad inventory will expand significantly. By 2025, with players like Netflix and Disney+ in the mix, ad-supported CTV will capture 40% of total digital video ad spend, drawing investments away from traditional social and display channels.
❓What are your thoughts on the future of CTV advertising? How do you see these trends impacting your ad strategies in the next few years?
#FutureofAdvertising
