Ad Evolution: Incorporating CTV into the Media Mix
By 2026, nine streaming services are projected to generate over $1 billion in ad revenue each, compared to just two in 2020, according to eMarketer. This explosive growth underscores the massive transformation underway in the connected TV (CTV) space, reshaping marketing budgets and consumer experiences. As platforms like Amazon Prime Video and Netflix continue to innovate with ad-supported tiers, marketers must keep pace with changing viewer behaviors and marketplace dynamics.
Here’s a look at the trends LWD sees shaping CTV advertising in 2025 and beyond!
1. CTV Viewership Outpaces Ad Spend
By 2026, CTV is expected to command 20% of daily media consumption among U.S. adults, which is up from 11.5% in 2020. Yet, it will capture only 8.1% of total ad spend, leaving significant untapped potential for marketers. This disparity highlights a crucial opportunity: advertisers can capitalize on the growing audience while competition for ad inventory remains comparatively low.
Subscription-based streaming models are evolving with more affordable, ad-supported tiers. These plans attract cost-conscious consumers, expanding CTV’s reach while maintaining stable ad loads. For brands, this means access to a larger, highly engaged audience at competitive rates.
2. Linear TV Still Leads in Reach
Despite the rise of CTV, linear TV retains unmatched reach and dominance in ad impressions. This makes it a critical channel for upper-funnel campaigns where mass exposure is key.The level of Linear TV ad spend will vary from brand to brand, but the LWD team still sees it being a crucial part of the media mix. Marketers should continue leveraging its scale while incorporating advanced measurement tactics to connect campaigns across platforms. Our proprietary attribution technology, SmartMatch 360™, does just that so that our clients can fully understand the impact of each of their channels to their overall campaign success.
3. CTV’s Targeting Capabilities Fuel Broader Ad Spend
CTV is gaining traction as a performance-driven channel. Sixty-five percent of marketers already use it to achieve measurable goals like driving web traffic and increasing revenue. Its advanced targeting and data capabilities offer precision, making it a valuable part of the media mix for performance-oriented campaigns.
4. Better Targeting Drives Creative Innovation
As targeting capabilities evolve, CTV is empowering advertisers to craft highly personalized and impactful creative. This shift encourages marketers to break free from one-size-fits-all approaches, creating messaging that resonates deeply with specific audience segments. For brands new to TV, CTV offers a lower barrier to entry with higher potential for meaningful engagement.
What This Means for Marketers
As the media landscape continues to evolve, it’s clear that a total video approach to advertising, incorporating each channel can bring results to video campaigns. At LWD, we specialize in helping brands navigate this evolving landscape, balancing traditional TV’s broad reach with the nuanced targeting capabilities of CTV.
By staying ahead of these trends, marketers can ensure they’re making the most of their advertising budgets while creating memorable consumer experiences. Whether you’re exploring ad-supported streaming or looking to optimize campaigns across channels, there’s no better time than the present!
Ready to explore how CTV can enhance your marketing strategy? Contact us to learn more about how LWD can help you leverage emerging opportunities across Total Video.
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Sources:
* eMarketer, 4 CTV Ad Spend Trends to Track in 2025 December 2024
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