Key stat: Combined US TV and connected TV (CTV) ad spend will grow every year through to the end of our forecast period in 2027, when it will reach nearly $100 billion, according to our October 2023 forecast. CTV will account for all of the growth, with spend increasing by $5.50 billion YoY in 2024.

Beyond the chart:

• CTV’s gains will make up for the decline of linear TV ad spend, which will drop 4.7% in 2025, 1.2% in 2026, and 4.0% in 2027.
• Over the next four years, TV and CTV ad inventory is expected to fall by 24%, per Brian Wieser of Madison and Wall. This will be due in large part to the migration from linear to digital, where there are fewer ads being served.
• Higher CTV ad price points will help offset the drop in ad inventory.

Use this chart:

• Evaluate TV ad budget between linear and digital.

More like this:

• Despite a reduction in ad inventory, the market for TV and CTV ad spending will grow by billions
• Why retail media is the future of TV advertising
• 4 ways to enhance your CTV ad creative and avoid consumer fatigue
• How are CTV ads bought and sold?

Note: Digital ad spending includes banner ads and other (static display ads such as Facebook's News Feed Ads and X's Promoted Posts), classified ads, email (embedded ads only), mobile messaging (SMS, MMS, and P2P messaging), rich media (including in-stream and outstream video ads), search ads (including contextual text links, paid inclusion, paid listings, and SEO), sponsorships, lead generation (referrals); rich media data for 2017-2022 includes in-stream and outstream video ads; data prior to 2017 includes only outstream video ads.

Methodology: Estimates are based on the analysis of various elements related to the ad spending market, including macro-level economic conditions, historical trends of the advertising market, historical trends of each medium in relation to other media, reported revenues from major ad publishers, estimates from other research firms, data from benchmark sources, consumer media consumption trends, consumer device usage trends, and eMarketer interviews with executives at ad agencies, brands, media publishers, and other industry leaders.