The connected TV (CTV) advertising sector is experiencing a major resurgence, according to the Interactive Advertising Bureau’s (IAB) latest 2024 Video Ad Spend & Strategy Report. After a challenging 2023 marked by cautious ad spending and market uncertainties, CTV ad investments have rebounded to achieve double-digit growth in 2024, reaffirming its critical role in media buying strategies.
The report reveals that CTV ad spend rose by 12% year-over-year, positioning the platform as the second-largest digital video channel after social video. This growth is fueled by brands seeking greater flexibility, audience targeting, and measurable outcomes in an increasingly fragmented video landscape. According to IAB, marketers are allocating an average of 43% of their total video budgets to CTV, a significant jump compared to previous years, underscoring its transition from a complementary to a core media channel.
David Cohen, CEO of IAB, highlighted the platform's momentum, stating, "The rebound in CTV spend clearly demonstrates that marketers recognize the power of premium, professionally produced content delivered in a highly viewable environment. It’s a space that not only drives engagement but also offers unparalleled opportunities for innovation in ad formats and measurement."
The shift towards CTV is also being driven by its alignment with evolving consumer behaviors, as more audiences migrate from traditional linear TV to streaming platforms. Advertisers are increasingly valuing the ability to leverage data-driven targeting while reaching audiences in a TV-like experience, something that traditional linear formats can no longer guarantee at scale. In addition, advancements in shoppable ads, interactive formats, and cross-device attribution are making CTV an even more attractive proposition for performance-driven brands.
Despite concerns around measurement standardization and frequency management, the overall outlook remains bullish. The IAB report notes that brands are becoming more sophisticated in their CTV strategies, investing in tools and partnerships that ensure efficient ad delivery and campaign optimization.
Looking ahead, industry leaders anticipate that CTV will continue to gain share within total video budgets, especially as new entrants, ad-supported streaming tiers, and content innovation drive further growth. As Cohen concluded, "CTV is no longer emerging; it’s firmly established. The challenge and opportunity now lie in scaling solutions that maximize its unique strengths for both brands and consumers."