The advertising landscape is evolving rapidly, and a pivotal shift from traditional Linear TV to Connected TV (CTV) is reshaping how brands connect with audiences. LG Ad Solutions’ recent report uncovered strategies to optimize TV ad spending and highlights the critical role of CTV in 2025.
Based on an analysis of 224.2 billion impressions from 87 brands across 12 industries, the report illustrates how advertisers can achieve an optimal balance between Linear TV and CTV investments. The findings reveal that reallocating even a small share of impressions—6.3%—from Linear TV to CTV significantly boosts performance metrics.
Top-performing brands allocate an average of 23.7% of impressions to CTV, far above the 17.4% average for other advertisers. These shifts result in dramatic improvements, including a 63% increase in unique reach and a 105% boost in web conversion rates.
Linear TV, which still accounts for 67.5% of total TV ad spending, generates 86.9% of impressions but suffers from oversaturation. The average frequency for Linear TV campaigns is 26.5, compared to 7.3 for CTV, highlighting the inefficiency of the former in reaching new audiences.
The report highlights a distinct divide among industries in their adoption of Connected TV (CTV). Some sectors are leading the charge, while others lag behind. Industries such as Travel, with a CTV share of 33.3%, Home & Real Estate at 26.1%, and Pharmaceuticals at 24.1% are at the forefront of this shift. These leaders are capitalizing on CTV’s ability to engage niche audiences effectively and efficiently. On the other hand, industries like Health & Beauty (21.0%) and Technology (20.9%) are emerging adopters, showing steady progress in their transition to CTV. Meanwhile, sectors like Automotive (13.3%) and Entertainment (7.6%) continue to rely heavily on Linear TV, thereby missing out on the advantages offered by CTV.
The report also underscores the varying impact of CTV based on campaign size. Small campaigns, defined as those with fewer than 300 million impressions, demonstrate the most significant benefits from embracing CTV. Top-performing brands in this category allocate an impressive 53.1% of impressions to CTV, enabling them to achieve substantial gains in reach and efficiency. Medium-sized campaigns, with impressions ranging from 300 million to 2.9 billion, benefit from a more balanced approach. These campaigns allocate 26.5% of their impressions to CTV, which helps them strike an optimal mix of reach and frequency. For larger campaigns exceeding 3 billion impressions, CTV accounts for only 12.8% of impressions. While these large campaigns still benefit from the incremental value of CTV, the gains are less pronounced compared to smaller efforts.
Looking ahead to 2025, LG Ad Solutions emphasizes the importance of adopting a CTV-first strategy for advertising success. This approach positions CTV at the center of a brand’s media plan, enabling advertisers to maximize reach, engage viewers who exclusively use CTV, and optimize frequency to avoid oversaturation. Furthermore, a CTV-first strategy drives measurable outcomes, including stronger attribution and improved business impact, setting the stage for a more efficient and effective advertising landscape.