CTV Ad Spend Growth: Opportunities and Risks

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CTV ad spend growth shown with a rising TV chart opportunity icons and risk symbols for fraud privacy and viewer fatigue

CTV ad spend growth is affecting all publishers and how they approach video monetisation. The change is visible as audiences have moved from linear television to streaming. Therefore, new revenue opportunities are coming up in the market through:

  • Premium inventory
  • Programmatic demand
  • Better targeting

But remember that fragmented measurement, ad fraud, privacy concerns, and viewer fatigue still create risks that require management. This blog aims to create awareness of opportunities and risks in the CTV domain.

Quick Summary: CTV ad spend is rising as audiences and budgets shift from linear television to streaming. Publishers can benefit from premium inventory, programmatic demand, improved targeting and new ad formats. However, sustainable growth depends on transparent supply paths, reliable measurement, privacy controls, balanced ad loads and a viewer-first monetisation strategy overall.

Key Takeaways

  • CTV is gaining advertising budgets from linear TV, social media, search and display.
  • Premium inventory and programmatic demand create new publisher revenue opportunities.
  • Better metadata can improve targeting, pricing and brand suitability.
  • Measurement gaps, fraud, privacy and excessive frequency remain major risks.
  • Sustainable CTV monetisation must balance revenue growth with viewer experience.

What is Connected TV advertising?

Connected TV advertising delivers video ads through internet-connected televisions, streaming devices and broadcaster or streaming applications.

It uses the large-screen impact of traditional television with digital targeting, automated media buying and campaign measurement. Unlike linear TV, CTV advertising can serve different ads to households watching the same programme.

Difference Between CTV, OTT and OLV

People often use CTV, OTT and OLV interchangeably, but they describe different aspects of digital video advertising. Here’s a simple tabular differentiation: 

TermMeaningWhere Content Is ViewedCommon ExamplesAdvertising Advantage
CTVConnected TV refers to internet-connected television devices used to stream video contentSmart TVs, streaming devices and gaming consoles connected to a television.Smart TV apps, Amazon Fire TV, Roku and Apple TV.Delivers high-impact, large-screen ads with digital targeting and programmatic buying capabilities.
OTTOver-the-top refers to video content delivered through the internet instead of traditional cable, satellite or broadcast television.Televisions, smartphones, tablets, laptops and other internet-connected devices.Streaming platforms, broadcaster applications and ad-supported video services.Helps advertisers reach streaming audiences across multiple devices and content environments.
OLVOnline video refers to video advertising shown within websites, applications and digital platforms.Desktop computers, laptops, smartphones and tablets.In-stream video ads, social video, publisher websites and mobile applications.Offers flexible formats, measurable engagement and broad audience reach across digital channels.

In simple terms, OTT describes how content is delivered, CTV describes the device on which it is viewed, and OLV describes video advertising across general online environments.

Why CTV ad spend growth matters now

CTV is no longer an experimental media channel. According to IAB’s 2025 Digital Video Ad Spend & Strategy Report, 68% of advertisers described CTV as a “must buy”, placing it ahead of social video at 62%.

Martech highlights that most new spending is being reallocated from other channels. Among advertisers increasing CTV investment:

Infographic showing CTV budget shifts with 36 percent from linear TV 36 percent social media 34 percent online video 32 percent search and 31 percent display

This shows that CTV is competing not only with television but also with established performance channels.

Market forecasts reinforce the shift. Interactive Advertising Bureau (IAB) projects US CTV spending to grow by approximately 13.8% in 2026. On the other hand, Omdia expects global CTV advertising revenue to rise from $44 billion in 2025 to $81 billion by 2030.

WARC-based industry analysis also places linear TV at only 12% of global ad spending and expects CTV to exceed 40% by 2030. It estimates that CTV already represents nearly half of viewing time. 

MNTN Research also states that US spending could increase by almost $20 billion over five years, despite annual growth moderating from around 14% in 2026 to 11% by 2029.

Four CTV monetisation opportunities for publishers

Here are four CTV monetisation opportunities for smart publishers and professionals. 

Higher-value CTV ad inventory

CTV ad inventory attracts advertisers seeking premium content, high video completion rates and the impact of the television screen.

Publishers can strengthen demand by accurately classifying

  • Content
  • Programmes
  • Genres
  • Live events
  • Audience environments. 

Also note that better metadata allows advertisers to understand what they are buying and can improve both pricing and brand suitability.

Programmatic CTV opens television to more advertisers

Programmatic CTV has lowered the operational and budget barriers that were traditionally associated with television advertising. Smaller advertisers that previously depended on search or social media can now reach streaming audiences.

For publishers, this creates a broader demand pool. But automated access should be supported by: 

  • Pricing controls
  • Deal prioritisation
  • Transparent supply paths
  • Clear advertiser-quality standards

More revenue from every viewing hour

Broadband TV News expects that ad-supported CTV services could generate an average of $0.21 per hour viewed if every available advertising slot were sold.

Infographic showing ad supported CTV services earning 21 cents per hour viewed when all available advertising slots are sold

The research also suggests that the industry is currently operating at approximately 65% of its commercial capacity. This highlights an important publisher revenue optimisation opportunity: improve fill rates, demand competition and ad-break decisions without automatically increasing the number of ads.

New and less disruptive ad formats

Pause ads, menu ads, overlays, squeeze-back formats and shoppable experiences can create incremental revenue without copying long linear-TV commercial breaks.

Standardised signals are also making these formats easier to trade programmatically. Publishers should evaluate them using revenue per session, attention, completion rate and viewer retention, not CPM alone.

The biggest risks in CTV advertising

This section highlights some of the biggest risks in CTV advertising which you must keep in mind. 

Fragmented CTV measurement

CTV measurement remains inconsistent across platforms. Impressions, co-viewing, reach, frequency and attention may be calculated differently, making campaign comparisons difficult.

IAB warns that fragmented standards and uneven signal quality can undermine accurate measurement and buyer confidence.

CTV ad fraud and supply-chain opacity

App spoofing, unauthorised reselling and unclear intermediary relationships can divert advertising spend away from legitimate publishers.

Publishers should maintain accurate app-ads.txt, ads.txt and sellers.json records while reducing unnecessary supply-chain hops. These standards help buyers confirm who owns inventory and who is authorised to sell it.

Poor frequency management

The same household may encounter one campaign repeatedly across different streaming applications and devices. Without cross-platform frequency controls, increased spend can cause viewer fatigue rather than incremental reach.

Privacy and identity exposure

CTV targeting can combine household, device and viewing signals. Publishers need consent-aware data practices, clear vendor governance and targeting strategies that do not depend entirely on unrestricted identifiers.

Excessive ad loads

Frustrated viewer faces a television packed with frequent ads showing how excessive ad loads reduce enjoyment engagement and retention

More commercial breaks may increase short-term revenue but also cause viewers to abandon content. Sustainable CTV monetisation requires balancing fill and CPM with session length, retention and overall revenue per viewing hour.

How publishers can capture CTV growth safely

Begin by auditing inventory ownership, application identifiers, content metadata, consent signals and authorised sellers.

Next, establish a monetisation setup that can compare direct campaigns, private marketplace deals and open-auction demand without sacrificing pricing control. Enterprise-grade ad serving, premium monetisation access and multiple reputable demand relationships can improve competition and reduce reliance on one buying route.

Publishers should monitor:

Note that a high CPM is not meaningful when poor fill, repeated exposure or slow ad delivery reduces total viewing and revenue.

Summing Up

CTV ad spend growth gives publishers access to expanding video budgets, but rising demand alone will not guarantee higher revenue. Success requires transparent programmatic access, strong yield controls, reliable measurement and an ad experience that keeps viewers watching.

Explore Auxo Ads to strengthen your video monetisation strategy and create a more efficient connection between premium inventory and quality advertising demand.

Want publisher growth insights without the AdTech noise? Visit the Auxo Ads blog for practical strategies that turn industry changes into measurable revenue.

Frequently Asked Questions

  1. Why is CTV ad spend growing?

CTV ad spend is growing because audiences are shifting from linear television to streaming, while advertisers value large-screen impact, addressable targeting, measurable outcomes and scalable programmatic buying across premium environments.

  1. How can publishers monetise CTV inventory?

Publishers can monetise CTV inventory through premium direct deals, private marketplaces and programmatic auctions while improving metadata, fill rates, pricing controls, demand competition and viewer-friendly ad experiences efficiently at scale.

  1. What are the biggest risks in CTV advertising?

The biggest CTV advertising risks include fragmented measurement, ad fraud, supply-chain opacity, privacy concerns, repeated exposure, weak frequency controls, latency and excessive ad loads that reduce viewer retention over time.

  1. What is the difference between CTV, OTT and OLV?

CTV describes the connected television device, OTT describes internet-delivered video content, and OLV refers to digital video advertising viewed across websites, apps, computers, smartphones, tablets and other online environments globally.

  1. How does programmatic CTV benefit publishers?

Programmatic CTV makes television advertising more accessible by automating buying, lowering budget barriers and connecting publishers with broader demand, but transparent supply paths and quality controls remain essential for growth.

Author

  • Assistant Content Manager with 4+ years of experience in the EdTech domain, now passionate about educating people on MarTech. I specialize in blending storytelling and research to create impactful, human-centered content.

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Assistant Content Manager with 4+ years of experience in the EdTech domain, now passionate about educating people on MarTech. I specialize in blending storytelling and research to create impactful, human-centered content.

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