Why CTV Advertising Is Taking Over Screens (and Budgets)

In 2025, few digital marketing trends have surged as quickly as Connected TV (CTV). Over the past year, CTV has transformed from a buzzword into a budget priority. In the U.S., CTV ad spend rose from $24.6 billion in 2023 to $30.1 billion in 2024—a remarkable 22.4% increase (1).

With millions of households now streaming content through platforms like Roku, Hulu, Amazon Fire TV, and YouTube TV, marketers have an intriguing opportunity to engage this growing consumer base. As streaming penetration rises, industry forecasts suggest annual CTV spending will nearly double to $42.4 billion by 2027 (1).

According to Jeff Green, CEO of the Trade Desk, “CTV is the most effective advertising in the world right now (2).” Green goes on to state that the unpredictability of user generated content is pushing advertisers to shift toward premium streaming content.

CTV advertising refers to ads delivered through internet-connected TVs, including smart TVs and devices like Apple TV or Chromecast. This ad type combines the impact of traditional television with the precision of digital targeting, uncovering hyper-specific audience segments. In the last year, both big and small brands have begun to shift serious ad spend into this space.

Why CTV is Gaining Momentum

What’s behind the CTV boom? For starters, the consumer behavior shift is undeniable. 87% of U.S. households now have a CTV device, and U.S. adults spend an average of 123 minutes per day watching via Connected TV (3). Free, ad-supported streaming television (FAST) platforms are also gaining favor—69% of CTV viewers prefer them to subscription-only services (4).

As more people abandon cable subscriptions in favor of streaming services, traditional TV viewership continues to decline. Meanwhile, CTV offers an on-demand experience that’s more personalized and—in some ways—less intrusive. It presents content in a format aligned with modern consumer preferences, allowing them to watch what they want when they want. CTV has become the star of the modern living room.

CTV: The Best of TV Meets the Precision of Digital

CTV ads blend the emotional impact of TV with the efficiency of digital control. According to a 2024 IAB report, digital video will represent nearly 60% of total TV/video ad spend in 2025, outpacing linear TV (5). Furthermore, live sports—once a linear stronghold—are shifting to streaming, further accelerating CTV’s dominance.

From a marketing perspective, CTV has obvious appeal. Compared to traditional TV, it offers enhanced targeting, metrics, and control.  CTV allows marketers to target audiences based on demographics, geography, behavior, and even purchase intent. Plus, performance monitoring is more transparent, permitting the measurement of impressions, completion rates, and even site visit/conversion tracking that come from a specific campaign. In other words, your TV ad spend just got smarter.

CTV Ads: Not Just More Reach—More Engagement

One of the most compelling opportunities for marketers involves Interactive CTV formats. These ads go beyond the traditional “watch-only” experience by inviting viewers to engage directly with the ad content—through actions like clicking, swiping, or choosing between options using their remote. Unlike standard CTV ads, interactive formats encourage real-time engagement, personalizing the experience and increasing viewer action and recall. In fact, Interactive CTV yields 10.3× higher engagement than “watch only” ads on desktop and 4.6× higher than on mobile (6).

And the creative opportunities? They’re just as exciting. With CTV, brands aren’t limited to the 30-second spot anymore. Dynamic creative based on audience profiles and retargeting capabilities allow marketers to build personalized and engaging experiences. It’s no longer just about reaching the masses, but rather reaching the right people with the right message at the right time.

Dan Mouradian, VP of Global Client Solutions at Innovid, weighs in with the following insight: “From a performance and creative perspective… interactive creative performs much better than standard creative…we see about a 93% video completion rate (10% higher than standard video ads).” (7)

What It Means for Your Brand

CTV is no longer just a “nice-to-have”—it’s essential for many businesses. It offers:

• Scale: access to nearly all streaming households
• Precision: targeting based on behaviors, geography, demographics
• Measurable impact: performance metrics like conversions and ROI
• Creative flexibility: interactive ads, dynamic messaging, retargeting

Of course, with growth comes a learning curve. The CTV landscape is still fragmented, with a mix of platforms, publishers, and inventory sources. However, as tech advances and programmatic platforms mature, navigating the ecosystem is getting easier—and more accessible for brands of all sizes. You no longer need a Super Bowl-sized budget to run a compelling CTV campaign.

At Ciniva, we’re excited to help brands tap into the power of CTV. This means crafting impactful campaigns that stay ahead of the curve in an increasingly screen-first world. Reach out to us to discuss how we can partner with your brand to elevate your CTV and overall marketing strategy. If you’re not already exploring CTV, now is the time to tune in. Because the future of TV is already connected.

Sources:

1. https://www.oberlo.com/statistics/ctv-ad-spend
2. https://www.cnbc.com/video/2023/12/07/connected-tv-is-the-most-effective-advertising-in-the-world-right-now-the-trade-desk-ceo-jeff-green.html
3. https://onaudience.com/key-statistics-ctv-tv-advertising/
4. https://www.strategus.com/blog/connected-tv-stats
5. https://www.simulmedia.com/blog/a-historical-overview-of-the-ctv-industry
6. https://www.innovid.com/resources/blog/innovid-launches-the-ctv-advertising-insights-report-2024
7. https://www.innovid.com/resources/blog/top-8-quotes-from-advertising-week-showcasing-the-power-of-ctv