According to a report released last week by BMO Capital Markets’ Wall Street equities research team, connected TV (CTV) ad spending in the United States is expected to reach almost $21 billion this year and will rise at a rate of around 23% annually through 2030, reaching about $100 billion.
BMO Analyst Daniel Salmon wrote in the report –
“The growth of CTV advertising is the answer to the No. 1 topic we’ve been asked over the course our career. When will the inevitable growth of internet advertising disrupt TV ad budgets? Defined as use of a television to stream video over-the-internet, CTV sits at the crossroads of advertising transformation, bridging the signature traditional channel (television) and the fastest-growing digital format (video).”
The analysis, which comes just days after GroupM released an update on the U.S. advertising market, anticipates a new category called “CTV+” to reach $9 billion this year, considerably beyond many previous projections and forecasts.
BMO believes that CTV advertising’s “advanced targeting capabilities” are considerably superior to traditional TV advertising, which is one of the reasons for its optimism.
Salmon added that CTV can be targeted directly to the individual household or user, unlike linear inventory that is typically targeted at broad demographics and/or metropolitan areas. He also said –
“This concept isn’t entirely new in television as addressable television predates CTV, but has only just begun to scale itself.”