Global advertising spend on connected TV is set to reach £20.3bn ($25.9bn) this year, an increase of 13.2% on 2022 as viewers and advertisers increasingly migrate from broadcast TV.
WARC Media’s Global Advertising Trends report finds that whilst connected TV is experiencing steady growth and is ultimately responsible for keeping overall television spend stable, it is not yet attracting new investment to the platform.
As a result, retail media is currently growing at three times the rate of connected TV, with both mediums currently at a similar developmental stage. In comparison, YouTube’s is also set to be 17.4% greater than that of connected TV.
“CTV ad spend is growing, but not as fast as one might expect. Whilst eyeballs are rapidly shifting from broadcast to streaming, this is evolution, not revolution,” WARC Media head of content, Alex Brownsell, said.
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“The market is fragmented, and CTV ad investment is mainly being drawn from existing budgets. More work must be done to help CTV to realise its full potential and ensure that media owners are able to attract ad dollars from beyond the current confines of the TV market.”
The need for advertisers to increasingly prioritise connected over linear TV over the coming years is becoming ever more apparent after figures released by GWI indicate that Gen Z is forecast to spend 90 minutes on average on streaming versus 86 minutes on linear TV in 2023.
EssenceMediacom media activation director, Charlotte King added: “It’s vital both marketers and agencies take an adaptive and reactive approach to tailoring their current TV strategy. This will ensure brands keep abreast of the curve, maximise their brand exposure and, ultimately, exceed their short- and long-term business goals.”
