17 JAN 2025

USA: CTV advertising to grow 10% annually through 2027

Nielsen revealed that CTV now reaches 77% of U.S. viewers weekly, surpassing the 68% reach of linear TV.

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Ad-supported streaming platforms are leading the charge in audience growth, with CTV advertising projected to grow at an annual rate of 10% through 2027, according to Nielsen's new guide for the 2025-2026 Upfronts and NewFronts season. CTV's weekly reach has expanded to 77% of U.S. viewers, outpacing linear TV's 68%. Despite this, linear TV remains a cornerstone for live sports and news, maintaining its appeal among advertisers seeking engaged audiences.

Streaming now accounts for 41% of total TV time, a significant rise from 31% two years ago. YouTube and Netflix continue to dominate, with YouTube capturing 26% of streaming time in October 2024, while Netflix held 18.4%. The rise of FAST and bundled pricing models has further fueled the growth of streaming.

Nielsen underscores the importance of advanced audience segmentation in the evolving media environment. For example, high earners (households earning $100,000 or more) prefer cable and niche platforms over general streaming services. New moms (women aged 18-44 with children under two) spend 71% of their TV time streaming, compared to 35% for the general U.S. population. Meanwhile, Asian Americans, though high-income earners, spend significantly less time with TV than other demographics.

Sports programming continues to be a linchpin for linear TV, accounting for 26.4% of broadcast viewing in Q3 2024. Major events, such as the Olympics and the NFL season, underscore broadcast TV's dominance in live sports, despite the increasing experimentation with streaming for sports rights.

Retail media networks are emerging as a critical component of advertisers' strategies, with 68% of global marketers deeming them more important in 2024 than the previous year. These platforms enable precision targeting near the point of purchase and are integrating with CTV to create shoppable TV experiences.

As TV and digital channels merge, Nielsen advocates for advertisers to adopt cross-platform strategies. By blending data-driven insights with advanced audience targeting, advertisers can navigate the evolving landscape confidently.

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