• by Karlene Lukovitz  @KLmarketdaily, December 7, 2023

The latest forecast from Insider Intelligence/eMarketer underscores how quickly connected TV is closing the advertising gap with traditional TV.

Connected TV ad spending will rise by 22% in 2024, to $30.1 billion, and see 72.5% growth by 2027, to reach $42.4 billion, according to the projections.

Combined spending on traditional TV and CTV will rise by $12 billion between 2023 and 2027.

CTV’s estimated $24.6 billion in spend in 2023 represents 29% of about $85 billion in total television ad spend. But by 2027, CTV will command nearly half (47%) of total TV spend of $97 billion.

The launch of ad-supported tiers by Netflix and Disney+ has increased CTV ad inventory, and Amazon’s entry into the ad marketplace next year will accelerate expansion.

Retail media spend in CTV is forecast to jump by nearly 336% next year alone, to account for 12.1% of total CTV ad spend, and forecast to account for 20.4% of CTV ad spend by 2027.

EMarketer also released data from ViewNexa showing that 58% of U.S. adults stream videos on connected televisions, versus 26% using mobile devices and under 10% using laptops or tablets: