CTV Advertising Will Be a $10B Industry by 2021, Says eMarketer
The move to online viewing will give a large boost to the connected TV advertising market, forecasts the researchers at eMarketer. U.S. connected TV ad spend will total $6.94 billion this year, but that will rise to $8.88 billion in 2020 and $10.81 billion in 2021.
With many of the top streaming services being ad-free, popular ad-supported services like YouTube, Hulu, and Roku are poised to reap the benefits, notes Eric Haggstrom, a forecasting analyst with eMarketer.
“Users of these platforms are likely either cord-cutters or cord-shavers," Haggstrom says. "That means some TV ad buyers are willing to pay a premium to reach users who are difficult to reach via traditional TV ads. These platforms are also bulking up their targeting, programmatic, and attribution capabilities in order to attract buyers from the digital world.”
Before it can fully appeal to video ad buyers, the CTV industry has some obstacles to overcome. For one, it lacks a single, commonly accepted measurement unit, such as traditional TV has. Also, CTV's ad targeting, attribution, and programmatic buying features aren't as strong as those offered by other digital ad platforms, he adds.
This year, 195.1 U.S. viewers of all ages will watch CTV content, up 5.3%, and that will grow to over 200 million in 2020, eMarketer predicts.
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