Insights
September 04, 2025
How fast is CTV advertising growing? (Q2 2025)
Table of Contents
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+16%
Year-over-year CTV ad spend growth (2024)
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$33B
Projected CTV ad spend in 2025
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60%
Digital video's share of TV/video ad spend
Connected TV (CTV) advertising grew 16% year-over-year in 2024, according to the IAB's annual report. This marks a return to double-digit growth after a temporary slowdown in 2023 when broader advertising market conditions caused a brief pause. With CTV advertising spending projected to reach $33 billion in 2025, connected TV remains the fastest-growing segment of television advertising and continues outpacing both traditional TV and most other digital advertising channels.
The 16% growth rate represents a significant acceleration in the streaming advertising market. This growth is driven by multiple converging factors: continued consumer migration from traditional TV to streaming, the launch and expansion of ad-supported tiers from major streaming services, and increasing advertiser confidence in CTV measurement and attribution capabilities. For businesses considering TV advertising, understanding this growth trajectory helps inform strategic decisions about where to allocate advertising budgets.
What the data shows
Multiple research firms track CTV advertising growth, with consistent findings about the channel's expansion.
Year-over-year growth metrics
The IAB's research reveals the trajectory of CTV advertising spending:
+16%: Year-over-year CTV ad spend growth in 2024
$28 billion: Approximate CTV ad spend in 2024
$33 billion: Projected CTV ad spend in 2025
+18%: Expected growth rate from 2024 to 2025
Double-digit growth: CTV has returned to strong growth after 2023 normalization
This growth rate significantly outpaces traditional TV advertising, which has been declining in the low single digits annually, and exceeds overall digital advertising growth rates.
Historical growth context
CTV advertising growth has varied year to year but maintained a strong upward trajectory:
2019-2021: Hypergrowth period with 30-40%+ annual increases
2022: Growth moderated but remained strong at approximately 20%
2023: Temporary slowdown to single digits amid broader ad market softness
2024: Return to 16% growth as market conditions improved
2025+: Continued double-digit growth expected
The 2023 slowdown reflected general advertising market headwinds rather than CTV-specific concerns. The rebound in 2024 demonstrates underlying advertiser demand for streaming advertising.
Share of total TV advertising
CTV's share of the overall TV advertising market continues expanding:
60%: Digital video's share of total TV/video ad spend
Growing annually: CTV takes share from traditional TV each year
Premium parity: CTV CPMs approach or match traditional TV in many cases
Investment follows attention: Advertiser dollars are tracking viewer migration
The shift in spending mirrors the shift in viewing. As audiences move from cable and broadcast to streaming, advertising budgets follow.
Comparison to other channels
CTV's growth rate stands out compared to other advertising channels:
Traditional TV: Declining 3-5% annually
Social media: Growing 5-10% annually
Search advertising: Growing 8-12% annually
CTV: Growing 15-20% annually
CTV's outperformance reflects its unique combination of big-screen engagement and digital targeting capabilities.
Breaking down the numbers
Understanding what's driving CTV advertising growth reveals opportunities for advertisers.
Why CTV is growing faster than other channels
Several factors contribute to CTV's exceptional growth:
Viewer migration: Streaming now accounts for over 45% of total TV viewing, with the share growing each month. Advertisers follow audiences, and audiences are streaming.
Ad-supported expansion: The launch and expansion of ad-supported tiers from Netflix, Disney+, Amazon Prime Video, and Max have dramatically increased premium streaming advertising inventory. More inventory with premium content attracts more advertiser spending.
Measurement maturation: CTV measurement has improved significantly, giving advertisers confidence that they can track results. Better measurement reduces risk and encourages budget allocation.
Self-serve platforms: The emergence of self-serve CTV platforms has made streaming advertising accessible to small and medium businesses previously unable to access TV advertising. More advertisers means more total spending.
Creative accessibility: AI-powered creative tools have reduced the production barrier for TV commercials, enabling more businesses to advertise on television.
The impact of premium streaming ad tiers
Major streaming services adding ad-supported options has accelerated CTV growth:
Netflix: Launched ad tier in November 2022, rapidly grew to millions of ad-supported subscribers. Premium content in an ad-supported environment.
Disney+: Added ad tier in December 2022, providing access to Disney's content library for advertisers.
Amazon Prime Video: Made advertising the default in January 2024, instantly creating one of the largest ad-supported streaming audiences.
Max (HBO): Offers ad-supported tier providing access to HBO and Warner Bros. content.
Each launch added significant premium inventory to the CTV market, driving spending growth.
Traditional TV's decline fuels CTV growth
As traditional TV viewing and advertising decline, budgets shift to CTV:
Cable and satellite subscriptions continue declining (cord-cutting)
Broadcast TV viewing represents only about 20% of total TV time
Traditional TV advertising budgets are being reallocated to streaming
Advertisers increasingly see CTV as the future of TV advertising
This reallocation represents both CTV growth and traditional TV decline, with net TV advertising relatively stable but composition changing dramatically.
Why it matters for your business
CTV advertising's growth trajectory has practical implications for businesses considering streaming advertising.
More inventory means better access
As CTV advertising grows, more inventory becomes available:
More streaming services offer advertising options
More content is available in ad-supported formats
More time slots become available for advertisers
Lower barriers to entry for small businesses
Increased inventory benefits advertisers through improved access and competitive pricing.
Growing advertiser confidence
The 16% growth rate reflects increased advertiser confidence in CTV:
Measurement works: Advertisers are satisfied with attribution capabilities
Results delivered: CTV campaigns are meeting performance expectations
Safe environment: Brand safety concerns have been addressed
Competitive CPMs: Pricing is acceptable relative to value delivered
This confidence, demonstrated through spending, suggests CTV advertising delivers results worth the investment.
Following the audience
CTV growth aligns with audience behavior:
Viewers are watching streaming, not cable
Advertisers following viewers to streaming are seeing results
Businesses not advertising on streaming miss growing audiences
The shift is permanent, not temporary
For businesses currently advertising only on traditional TV or not on television at all, CTV growth suggests it's time to test streaming.
Competitive dynamics
As more businesses advertise on CTV, competitive dynamics emerge:
Early movers may have advantages in developing expertise
Growing competition may affect CPMs over time
Understanding CTV becomes a marketing competency
Businesses not present cede streaming audiences to competitors
The growth rate indicates CTV advertising is becoming standard practice, not an experimental channel.
How to take advantage of this trend
Capitalizing on CTV growth requires practical steps to launch and optimize streaming advertising.
Start testing now
Given CTV's growth trajectory, testing sooner provides advantages:
Learn while costs are reasonable: CPMs may increase as demand grows
Develop expertise: Understanding what works takes experimentation
Establish presence: Begin building streaming audience relationships
Iterate: Multiple campaigns provide optimization opportunities
Platforms like Adwave enable testing with budgets starting at $50, making CTV experimentation accessible.
Allocate growing budgets to CTV
As advertising budgets are allocated, consider CTV's trajectory:
If already advertising on TV: Shift some traditional TV budget to CTV testing
If only advertising digital: Add CTV as a brand-building complement
If not advertising: CTV may be an accessible starting point for TV
Plan for growth: Budget for CTV testing and scaling
The 16% industry growth rate suggests many businesses are increasing CTV allocation. Match or exceed the industry pace to remain competitive.
Use accessible platforms
The growth of self-serve CTV platforms makes streaming advertising accessible:
Aggregated inventory: Platforms like Adwave combine 100+ channels
Low minimums: Start with $50-$200 for initial testing
AI creative tools: Generate commercials without production budgets
Simple targeting: Geographic and demographic targeting without complexity
These platforms democratize access to the same streaming inventory previously reserved for large advertisers.
Measure and optimize
Take advantage of CTV's measurement capabilities:
Track reach and frequency: Understand audience exposure
Monitor completion rates: Ensure ads are being watched
Attribute conversions: Connect ad exposure to outcomes
Test creative: Experiment with different messages and formats
Optimize targeting: Refine geographic and demographic targeting
Digital measurement capabilities differentiate CTV from traditional TV advertising.
The bigger picture
CTV advertising growth is part of broader transformations in media and advertising.
The streaming transformation
CTV advertising growth parallels the streaming viewership transformation:
45%+ of TV viewing is now streaming
Majority of households have streaming access
Younger generations are streaming-native
The shift is permanent and accelerating
Advertising follows attention. As attention shifts to streaming, advertising follows.
Traditional TV's future
CTV growth raises questions about traditional TV advertising's trajectory:
Linear TV will remain but with diminished scale
Live sports may sustain some traditional TV value
Older demographics still watch traditional TV
But the trend is clear: Streaming is the future of TV
Businesses should prepare for a streaming-dominant advertising landscape while still reaching traditional TV audiences where valuable.
Industry investment continues
The CTV advertising ecosystem continues attracting investment:
Measurement companies improving attribution
Creative tools reducing production barriers
Self-serve platforms expanding access
Data solutions improving targeting
This investment improves the CTV advertising experience for all advertisers, including small businesses.
What experts are saying
Industry analysts have noted CTV's continued momentum:
The IAB reports that "CTV rebounds to double-digit growth in 2024," indicating renewed confidence after 2023's moderation. Digital video now commands 60% of total TV/video advertising spend, reflecting the industry's recognition of streaming's importance.
eMarketer and other research firms project continued double-digit growth through 2025 and beyond, with CTV spending potentially reaching $40+ billion within a few years.
Common questions answered
How fast is CTV advertising growing?
CTV advertising grew 16% year-over-year in 2024, according to IAB data. This marks a return to double-digit growth after a temporary slowdown in 2023. Spending is projected to reach $33 billion in 2025, with continued double-digit growth expected through the decade.
Why is CTV growing faster than other advertising channels?
CTV benefits from multiple tailwinds: viewer migration from traditional TV to streaming, expansion of ad-supported tiers from major platforms, improved measurement capabilities, and accessible self-serve platforms enabling small business participation. Traditional TV is declining while streaming viewing grows, creating natural budget reallocation.
What percentage of TV advertising is now CTV?
Digital video (including CTV) now represents approximately 60% of total TV and video advertising spend, according to IAB data. CTV continues taking share from traditional TV as viewership patterns shift to streaming platforms.
Is CTV advertising growth sustainable?
Current projections suggest continued double-digit growth for CTV advertising through at least 2025-2027. The underlying drivers (viewer migration, ad-tier expansion, measurement improvement) remain strong. While growth rates may eventually moderate, CTV appears to have significant runway remaining.
How does CTV growth affect advertising costs?
CTV growth has kept CPMs relatively stable despite increasing demand. More inventory (from ad-tier launches and content expansion) has offset demand growth. Current CTV CPMs range from $15-35, with an average around $25 for small business advertisers.
Should small businesses advertise on CTV given this growth?
Yes, the growth trajectory suggests CTV is becoming a standard advertising channel. Small businesses can access CTV through aggregated platforms like Adwave starting at $50. Testing now allows businesses to develop expertise as the channel matures.
How does CTV growth compare to traditional TV trends?
CTV advertising is growing 15-20% annually while traditional TV advertising is declining 3-5% annually. This divergence reflects the viewership shift from cable and broadcast to streaming. Total TV advertising remains relatively stable, but composition is changing dramatically.
What's driving the 2024 rebound in CTV growth?
The 2024 rebound reflects several factors: recovery from general advertising market softness in 2023, continued viewer migration to streaming, full-year impact of Amazon Prime Video's ad tier launch, and growing advertiser confidence in CTV measurement and attribution.
What CTV growth rate is expected in 2025?
CTV advertising is projected to grow approximately 18% in 2025, reaching approximately $33 billion in total spending. This would represent acceleration from 2024's 16% growth, driven by continued streaming adoption and advertiser budget reallocation.
How should businesses allocate budgets given CTV growth?
Businesses should consider testing CTV if not already advertising on streaming, and increasing CTV allocation if already active. The 16% industry growth rate suggests many advertisers are shifting budgets to CTV. Matching or exceeding industry allocation trends helps maintain competitive positioning.
Is CTV advertising only for large brands?
No, the emergence of self-serve platforms and aggregated inventory has made CTV accessible to businesses of all sizes. Platforms like Adwave offer campaigns starting at $50 with AI-powered creative generation, eliminating traditional barriers to TV advertising.
What industries are growing CTV spending fastest?
Retail, consumer packaged goods, automotive, and entertainment are among the largest CTV advertising categories. Local service industries (restaurants, healthcare, real estate, professional services) are increasingly adopting CTV through self-serve platforms as accessibility improves.
How does CTV advertising growth affect small businesses?
CTV's growth creates opportunities for small businesses. More inventory keeps CPMs competitive despite demand growth. More self-serve platforms provide accessible entry points. Better measurement tools enable performance tracking. Growing advertiser adoption normalizes CTV as a standard channel. Small businesses can participate in the same growth trend as large brands through aggregated platforms like Adwave that offer low minimums and simplified buying.
What does CTV growth mean for traditional TV advertisers?
Traditional TV advertisers should view CTV growth as both opportunity and imperative. The opportunity lies in accessing growing streaming audiences with digital targeting capabilities unavailable in traditional TV. The imperative is that traditional TV audiences are declining as viewers migrate to streaming. Advertisers maintaining only traditional TV presence are reaching a shrinking audience while missing the growing streaming audience. Budget reallocation from traditional to CTV is the standard industry response.
How is CTV growth distributed across platforms?
CTV growth is distributed across streaming services, with YouTube maintaining the largest viewing share, followed by Netflix, Prime Video, Hulu, and others. Growth has been particularly strong for services launching ad tiers (Netflix, Disney+, Prime Video) and free ad-supported services (Tubi, Pluto TV, Roku Channel). Aggregated platforms like Adwave combine inventory across services, enabling advertisers to access growth across the ecosystem without managing multiple platform relationships.
Will CTV growth eventually slow down?
CTV growth rates will likely moderate as the market matures, but substantial growth runway remains. Streaming viewership continues increasing, suggesting ad spending growth will follow. The market may shift from 15-20% growth to single-digit sustainable growth as it matures. However, CTV is expected to remain the fastest-growing TV advertising segment for at least several more years as the industry continues its fundamental transition from traditional to streaming television.
How should businesses measure success with CTV given the growth?
Businesses should establish baseline metrics before CTV campaigns and measure changes in website traffic, store visits, and sales during and after campaigns. CTV-specific metrics include reach (households reached), frequency (ad exposures per household), completion rates, and attribution to conversions. Given CTV's growth, businesses should also benchmark their CTV adoption against industry trends to ensure competitive positioning in the evolving advertising landscape.
What budget allocation makes sense given CTV growth trends?
Budget allocation depends on current advertising mix and business goals. Businesses not yet advertising on CTV should allocate 10-20% of TV or video budgets to testing. Businesses already on CTV might consider increasing allocation given industry growth trends. The IAB data showing 16% growth suggests many advertisers are increasing CTV budgets annually. Matching or exceeding industry allocation trends helps maintain competitive presence in the streaming environment.
How is CTV growth affecting the broader advertising industry?
CTV growth is reshaping the advertising industry by validating streaming as a premium advertising environment, encouraging traditional media companies to develop streaming strategies, driving investment in measurement and creative technology, and enabling small business participation in TV advertising. The growth validates the streaming model and accelerates the transition from traditional to digital TV advertising across the industry.
What role does live sports play in CTV advertising growth?
Live sports streaming is becoming a significant driver of CTV advertising growth. Amazon's Thursday Night Football, Apple TV+'s MLB coverage, and upcoming NBA streaming deals are moving premium sports content to streaming platforms. BCG estimates live CTV advertising spending alone is reaching $8-9 billion in 2025, with projections of $5+ billion in additional growth from live programming. Sports content provides high-engagement advertising environments that attract premium advertising rates.
How does CTV growth affect creative requirements?
CTV growth creates demand for more streaming-optimized creative content. Businesses advertising on CTV need TV-quality commercials designed for big-screen viewing. This has driven development of AI-powered creative tools (like those from Adwave) that enable businesses to generate TV-ready commercials without traditional production budgets. The creative barrier that historically limited TV advertising to large brands is being reduced alongside the media buying barrier, enabling broader business participation in the channel.
What competitive dynamics does CTV growth create?
CTV growth creates competitive dynamics as more advertisers enter the streaming advertising space. Early adopters develop expertise and audience relationships that benefit long-term performance. However, growing inventory from new ad tiers has kept CPMs relatively stable despite demand growth. Businesses not participating in CTV growth may find competitors building streaming advertising capabilities and audience awareness while they remain limited to traditional channels or digital-only approaches.
How does international CTV growth compare to U.S. growth?
U.S. CTV advertising is the most developed market globally, but international markets are growing faster from smaller bases. European and Asia-Pacific CTV markets are experiencing rapid growth as streaming adoption expands globally. For businesses with international customers or expansion plans, understanding that CTV growth is a global phenomenon helps inform long-term advertising strategy. However, most CTV advertising platforms currently focus primarily on U.S. inventory.
Supporting data
Additional statistics that contextualize CTV advertising growth:
+16%: CTV year-over-year ad spend growth (2024)
$28 billion: Approximate CTV ad spend (2024)
$33 billion: Projected CTV ad spend (2025)
+18%: Expected CTV growth rate (2024-2025)
60%: Digital video share of total TV/video ad spend
45%+: Streaming share of total TV viewing
-3% to -5%: Traditional TV advertising annual decline
$15-35: CTV CPM range through aggregated platforms
$50: Minimum budget to start CTV advertising on platforms like Adwave
Data sources:
eMarketer CTV advertising projections
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