23 JAN 2025

USA: marketers to double advertising investment in CTV in 2025

New data from Proximic by Comscore revealed CTV accountability for media budgets will double from 2023.

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Connected TV continues to redefine the advertising ecosystem. In 2025, CTV will account for 28% of media budgets, doubling from 14% in 2023, underscoring its growing significance, according to the 2025 State of Programmatic whitepaper, published by Proximic by Comscore. Meanwhile, the share of traditional Web and Mobile Digital media has dropped from 38% in 2024 to 34% in 2025. Social media remains steady at 20%, while Audio/Podcasts see modest growth, rising to 9% from 7% in 2023.

The migration of advertising dollars is particularly notable as 46% of marketers increasing their CTV investments are reallocating budgets from Linear TV, and 34% are drawing funds from Web and Mobile Digital channels. This shift reflects the increasing appeal of streaming platforms over traditional media formats.

PROGRAMMATIC BUDGETS ON THE RISE

Marketers are showing unshaken confidence in programmatic advertising, with 72% planning to increase their investments in 2025. The report reveals that programmatic transactions are expected to dominate budgets across CTV (61%), Web and Mobile Digital (60%), and Audio (40%). However, programmatic spend in Social Media will remain stable at 30%.

PRIVACY DRIVES TARGETING INNOVATION

Privacy concerns are taking center stage as marketers adapt to regulatory shifts and the decline of third-party cookies. By the end of 2025, 48% of marketers plan to rely primarily on cookie-free targeting tactics, up from 2% in 2024. Contextual targeting has emerged as the leading strategy, with 41% of marketers favoring it over first-party data (40%) and alternative identifiers (16%).

The adoption of contextual data is also set to accelerate, with 54% of marketers planning to increase its use in 2025. Only 5% intend to reduce their investment, highlighting the industry's commitment to privacy-sensitive solutions.

CROSS-CHANNEL MEASUREMENT: A MUST-HAVE

Accurate measurement remains a priority for marketers. The report reveals that 80% of respondents view deduplicated reach and frequency measurement as critical in programmatic environments. Furthermore, metrics like reach and frequency (70%) and conversion rates (69%) are at the forefront of measuring campaign success.

MARKETERS’ PREPAREDNESS FOR PRIVACY LAWS

Navigating the fragmented privacy landscape in the U.S. remains a challenge, but 60% of marketers feel prepared for regulatory changes in 2025. Still, 35% report feeling only "somewhat prepared," emphasizing the need for ongoing support and education in privacy law compliance.

AI AND CONTEXTUAL INTELLIGENCE: A POWERFUL COMBINATION

The report concludes with an optimistic view of AI’s role in programmatic. By leveraging Proximic’s ID-free predictive audience tools and contextual solutions, marketers can achieve a 96% increase in incremental users compared to ID-based targeting alone, proving the potential of privacy-enhancing technologies in expanding audience reach.

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