Connected TV (CTV) ad spend in the US will pass $25 billion this year and continue to grow by double digits through the end of our forecast period in 2027. Even with a challenging market, the format is in decent shape.

Linear upfront spending is expected to remain flat for the foreseeable future, but marketers are increasingly turning to connected TV (CTV), with advertisers projected to spend more than $8 billion on CTV ads at this year’s upfronts and NewFronts.

Retail media is moving from its initial state (search and on-site display ads) up the funnel toward social, open web, and connected TV. As retail media networks move into their next era, they should leverage partnerships to explore new channels, said Evan Hovorka, vice president of product and innovation at Albertsons Media Collective.

Though we’ve downgraded our retail media forecast, we anticipate the channel will experience double-digit growth through 2027. “I don’t think it’s an exaggeration to say that retail media is one of the most important and potentially most transformative ad spending channels in media right now,” said our analyst Max Willens.

On today's episode, we discuss the significance of Netflix saying it has 5 million monthly active users on its ad tier, the biggest impacts of the new streaming service Max, and how much noise a combined Paramount+ and Showtime offering can make. "In Other News," we talk about the current state of esports and what the best connected TV (CTV) ad formats are. Tune in to the discussion with our director of Briefings Jeremy Goldman.

YouTube is positioned to be an advertising powerhouse. It’s one of the original digital video players, courting advertisers at a time when connected TV advertising is climbing. The platform’s Google ties offer it a more trustworthy reputation in the US than TikTok. And use is already extremely high. But YouTube’s high standing also makes growth difficult. Here are five charts summarizing YouTube’s position and potential.

Retail media’s rise in popularity is being boosted by increasing ecommerce sales, a wide variety of ad formats, and established retailer-brand relationships. But an increasingly crowded space may have advertisers feeling overwhelmed, which could put a bit of strain on retail media’s growth.

More than half (53%) of US TV advertisers say a lack of common metrics is a challenge to integrating linear and digital campaign data, according to Yahoo Advertising. Creating a holistic framework and navigating walled gardens’ data-sharing rules are hurdles for about 40% of TV advertisers each.

US connected TV (CTV) ad spend will continue to grow through 2027, when it will reach $40.90 billion, according to our forecast. Apart from a small bump next year, ad spend on TV (including broadcast and cable TV) will decline over the next few years. Still, TV’s share of total ad spend is larger than CTV’s, indicating it remains a key player in marketers’ ad strategies.

The UK ad market is under as much pressure as it’s ever faced. But while spending growth will hit a historical low, there are some positive signs for advertisers with experimentation away from the duopoly a very real possibility.

The way advertisers think about TV is changing as it shifts from linear to ad-supported streaming. Here are three developments shaping TV ad measurement, streaming behaviors, and consumer targeting.

In the US, 77% of TV-owning households had a smart TV as of Q1 2023, according to Hub Research. Connected TVs, which include smart TVs, streaming sticks, and other devices, will be used in 115.1 million households next year, more than double the number of traditional pay TV households, according to our forecast.

While marketers still view TV as a unique brand-building vehicle, they’re also coming to understand the possibilities that connected TV (CTV) offers. In fact, 52% of marketers currently use CTV for performance marketing with the aim of generating measurable web visits, conversions, and revenues, according to MNTN research.

UK consumers have a voracious appetite for digital video content, but the cost-of-living crisis is boosting ad-supported options, particularly broadcaster video-on-demand services. Netflix’s pivot to an ad tier, meanwhile, may have legs.

We forecast US advertisers will spend a combined $86.40 billion on linear and connected TV (CTV) this year—in other words, about 1 in 4 ad dollars will go to ads on the TV glass. But as linear TV ad spending stagnates, networks are incentivized to prove the reach and efficacy of their digital properties.

Despite a surge in ads, connected TV (CTV) faces the same challenge as traditional TV: getting consumers’ attention. Our analyst Paul Verna shares why co-viewing won’t hurt CTV’s targeting abilities and how too much repetition may make ads ineffective.

As economic uncertainty lingers, the dust has yet to settle on the TV currency battlefield. We review what’s changed since last year and which networks support which Nielsen alternatives.

Retailers and the tech firms powering some of their RMNs are racing to give ad buyers access to more off-site inventory in formats ranging from CTV to digital out-of-home to in-store. But on-site has plenty of headroom left, as this new data from our forecast shows.

On today's episode, we discuss whether watching TV with other people ruins the potential of targeted connected TV (CTV) ads, who's winning the CTV advertising race, and how CTV stacks up against traditional TV ad spending. "In Other News," we talk about Netflix's road map for video games and what to make of its 1 million user milestone for its ad tier. Tune in to the discussion with our analyst Paul Verna.

Retail media will stay ahead of connected TV (CTV) in US ad spending and close in on traditional TV this year, according to our forecast. Search overall, including paid search on retail media networks, will reach $108.48 billion in 2023.