US CTV Ad Spend (2023–2027)
Overall digital ad spend in the United States is set to rise by 10% in 2024, to $298.4 billion. Advertising expenditure on social media alone is forecast to total $76.4 billion. But what about connected television (CTV)?
As CTV penetration rises, so has CTV ad spend. In fact, experts say CTV advertising growth is set to outpace all major ad channels but retail media this year. Here’s a look at connected TV ad spend between 2023 and 2027.
CTV ad spend: 2023–2024
According to a recent market report, CTV ad spend in the US hit $24.6 billion in 2023. This includes digital ads that appear on CTV devices and video platforms like Hulu and YouTube.
Connected TV ad spend is expected to rise this year, by 22.4%, to $30.1 billion, to account for 9.8% of the total US digital ad spend.
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CTV ad spend: 2025–2027 forecast
Analysts expect CTV advertising’s growth to continue for at least three more years, but at slower rates. In 2025, it is forecast to rise by 13.9%, to $34.3 billion. A growth rate of 11.5% is expected the following year, which will take CTV ad spend to $38.24 billion.
By 2027, expenditure on connected TV ads is forecast to cross the $40 billion mark, as spending rises by 11%, to $42.4 billion.
From 2023 to 2027, annual CTV ad spend is set to nearly double. The total increase is expected at $17.8 billion—a percentage rise of 72.5% and an average annual growth rate of 14.9%.
Analysts attribute a part of the recent rising CTV ad spend to the strategic shift of live sports shows toward digital broadcasting platforms. In the past two years, sports content, including Major League Soccer and NFL Thursday Night Football, has transitioned to online streaming platforms, driving increased investment in CTV advertising.
CTV ad spend: share of digital ad spend
Connected TV ads expenditure’s share of total digital ad spend is also expected to increase between 2023 and 2027. In 2023, this was recorded at 9.1%. In other words, out of every $100 spent on digital ads, $9.10 was on CTV ads.
This is set to rise to 9.8% in 2024. In 2025, CTV ads’ share of digital ad spend is expected to hit 10%, a figure that’s projected to hold steady until at least 2027.