ctv-advertising-market-size-q4-2025

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- # How Big Is the CTV Advertising Market? Q4 2025 Data
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- The U.S. connected TV advertising market reached $33.35 billion in 2025, according to [eMarketer's latest forecast](https://www.emarketer.com/content/one-of-largest-sources-of-new-video-ad-inventory-spending-ctv). This represents roughly 16% growth from 2024 and marks another year of double-digit expansion for the fastest-growing major advertising channel. For context, the CTV market has grown more than four times since 2020, when total spending was approximately $8 billion. The trajectory is unmistakable: advertisers are following audiences to streaming, and the infrastructure supporting CTV has become sophisticated enough to accommodate budgets ranging from $50 to $50 million.
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- ## What the data shows
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- The numbers paint a clear picture of CTV's acceleration and traditional TV's decline.
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- CTV ad spending reached $33.35 billion in 2025, according to [eMarketer](https://www.emarketer.com/content/connected-tv-continues-redefine-tv-advertising). By 2028, that figure is expected to grow to $46.89 billion, [surpassing traditional TV advertising](https://www.emarketer.com/content/us-tv-connected-tv-ad-spending-forecasts-h2-2025) for the first time in history. The shift represents more than a gradual transition. Linear TV has declined to approximately 12% of global ad spending, according to [WARC Media](https://www.warc.com), while CTV continues its march toward dominance.
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- The growth trajectory tells the story. Annual CTV ad spending increases have consistently hit double digits, with approximately 16% growth from 2024 to 2025. [eMarketer projects](https://www.emarketer.com/content/4-ctv-ad-spend-trends-track-2025) approximately 14% growth in 2026 before moderating to around 11% annually through the end of the decade. Even at these slower rates, CTV will add nearly $20 billion in U.S. ad dollars over the next five years.
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- What makes this growth particularly significant is where the money is coming from. CTV isn't just capturing new digital ad budgets. It's absorbing spend that once went to cable and broadcast television. According to the [IAB's 2025 Digital Video Ad Spend Report](https://www.iab.com/insights/video-ad-spend-report-2025/), digital video as a whole rose 18% in 2024 to $64 billion and is projected to reach $72 billion in 2025. CTV represents the fastest-growing segment within this category.
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- The market structure is consolidating around major players. [YouTube is expected to account for nearly 12%](https://www.emarketer.com/content/us-tv-connected-tv-ad-spending-forecasts-h2-2025) of CTV ad revenues in 2026, driven by approximately $9.21 billion in net ad sales. Amazon and Disney (combining Hulu, Disney+, and ESPN) will each capture over 10% of the market. These three companies alone will control roughly a third of all CTV advertising.
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- Nine streaming services are now projected to generate over $1 billion in ad revenue in 2026, up from just two in 2020. This expansion of ad-supported inventory creates more opportunities for advertisers at every budget level.
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- ## Breaking down the numbers
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- Understanding the components of CTV growth helps advertisers make smarter decisions about where to allocate budget.
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- ### By platform
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- The CTV market remains fragmented, with only three companies expected to capture more than 10% of ad sales in 2026:
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- - **YouTube:** Nearly 12% market share, approximately $9.21 billion in net CTV ad sales
- - **Amazon:** Over 10% market share through Prime Video, Fire TV, Twitch, and Freevee
- - **Disney:** Over 10% market share combining Hulu (approximately $4 billion), Disney+ (approximately $1.1 billion), and ESPN
- - **Netflix:** Growing rapidly with ad revenue exceeding $1.5 billion in 2025 and [expected to double in 2026](https://www.cnbc.com/2026/01/21/netflix-advertising-revenue-strategy-paying-off.html)
- - **Other services:** Peacock, Paramount+, Tubi, Pluto TV, Max, and The Roku Channel divide the remainder
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- The fragmentation creates both opportunity and challenge. Advertisers gain access to diverse audiences across different viewing contexts, but managing campaigns across multiple platforms requires aggregated buying approaches. Self-serve platforms like [Adwave](https://adwave.com) aggregate inventory across 100+ channels, providing reach without requiring separate relationships with each streaming service.
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- ### Growth drivers
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- Several converging factors fuel CTV advertising's expansion:
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- **Ad-supported tier proliferation:** Netflix's ad tier now reaches 94 million monthly active users globally. Disney+ reports 157 million monthly ad-supported viewers worldwide. Amazon Prime Video added ads to its base tier in 2024. These additions alone created billions of dollars in new advertising inventory.
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- **Ongoing cord-cutting:** As documented in our [cord-cutting statistics](https://adwave.com/resources/cord-cutting-statistics), streaming now captures over 47% of all U.S. TV viewing time. These viewers haven't stopped watching content. They've shifted to streaming, and [CTV advertising](https://adwave.com/resources/what-is-connected-tv-advertising) is how advertisers reach them.
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- **Measurement improvements:** CTV offers more precise impression tracking than traditional TV's estimated ratings. Advertisers can verify their ads were actually delivered, measure completion rates, and increasingly connect exposure to outcomes.
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- **Self-serve and programmatic tools:** The [IAB notes](https://www.iab.com/news/ctv-rebounds-to-double-digit-growth-in-2024/) that "CTV is no longer just for brands with big budgets" due to self-serve platforms that enable small and mid-size businesses to participate.
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- ### Where CTV dollars come from
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- The IAB reports that most dollars flowing into CTV represent reallocations from other channels rather than purely incremental spend:
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- - **Linear TV:** 36% of CTV budget reallocation comes from traditional television as advertisers follow audiences to streaming
- - **Social media:** 36% comes from social platforms as digital advertisers add CTV for brand-building capabilities
- - **Other digital:** The remaining portion comes from online video, paid search, and display
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- This reallocation pattern suggests advertisers are treating CTV as a core channel rather than an experimental add-on. For businesses already advertising on [social platforms](https://adwave.com/resources/ctv-vs-meta-ads-comparison/), CTV offers complementary reach and brand-building impact.
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- ### CPM and pricing trends
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- As the CTV market has grown, pricing has become more competitive. Current [CTV CPMs](https://adwave.com/resources/average-ctv-cpm) range from $15-35 for small business advertisers, with an average around $25. This represents significant improvement from the early days of CTV when premium rates and high minimums excluded smaller advertisers.
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- The increase in inventory from ad-supported streaming tiers has moderated CPM growth. While premium inventory on Netflix or Disney+ commands higher rates ($40-65), the overall market offers accessible pricing for businesses of all sizes. Platforms like Adwave start at just $50, making TV advertising achievable for businesses that couldn't previously afford it.
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- ## Why it matters for your business
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- The expanding CTV advertising market creates tangible benefits for small business advertisers, even if you're not planning to spend millions on advertising.
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- ### More inventory means better access
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- A $33 billion market requires substantial advertising inventory to absorb that spending. This inventory growth works in advertisers' favor. More available ad slots mean less competition for any individual placement, which helps moderate pricing and improves the likelihood of reaching your target audience. Five years ago, CTV inventory was relatively scarce and expensive. Today, the proliferation of ad-supported streaming options creates abundance.
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- ### Platform investment benefits all users
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- The scale of CTV spending attracts investment in platform capabilities. Ad technology companies build better targeting tools, measurement solutions, and creative capabilities because the market size justifies the investment. Small advertisers benefit from these improvements even though enterprise budgets drove the investment.
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- Consider how AI-powered creative generation has emerged. Creating a TV commercial used to require production budgets of $5,000 to $50,000 or more. Now, platforms like Adwave can generate professional ads from your website assets at no additional cost. This innovation exists because the CTV market's scale justified the development investment.
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- ### Validation and maturity
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- A $33 billion market isn't experimental. When major brands allocate significant budgets to CTV, they validate the channel's effectiveness. When measurement firms develop sophisticated attribution solutions, they confirm the medium delivers results. For businesses considering [TV advertising for the first time](https://adwave.com/resources/tv-advertising-for-small-business), the market's maturity provides confidence that you're not taking an unnecessary risk.
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- ### Timing advantages
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- Entering a growing market often provides advantages over waiting. As more advertisers discover CTV, competition for the best inventory will increase. Establishing your presence now, while the market is still developing and smaller advertisers have good access, may be more advantageous than waiting until the market becomes more crowded.
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- The learnings you accumulate from early campaigns compound over time. Which targeting works, what creative resonates, and how CTV fits your overall marketing mix are questions you'll answer through experience. Businesses that start now build institutional knowledge that late entrants won't have.
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- ## How to take advantage of this trend
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- The CTV market's growth creates opportunity, but capturing that opportunity requires action.
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- ### Start with accessible platforms
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- Direct relationships with streaming services like Netflix or Hulu typically require substantial minimum commitments. Self-serve platforms like Adwave aggregate inventory across 100+ channels, offering access to the same premium inventory with minimums starting at $50. This approach lets you test CTV without major budget commitments.
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- Look for platforms that offer geographic targeting for local businesses, audience targeting, and transparent pricing. The proliferation of self-serve options means you have choices. Select one that fits your specific needs and budget.
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- ### Allocate test budget appropriately
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- For initial CTV testing, consider allocating $200-$500 over two to four weeks. This budget provides enough impressions to gauge whether CTV drives meaningful results for your business while limiting risk. Successful tests can be scaled. Unsuccessful ones provide learning without major financial impact.
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- If you're currently spending on social or search advertising, consider reallocating a small percentage (5-10%) to CTV testing rather than adding purely incremental budget. This approach mirrors how larger advertisers are moving dollars into the channel.
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- ### Use AI creative tools
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- One of the biggest barriers to TV advertising has traditionally been creative production. AI-powered platforms now eliminate this barrier. By providing your website URL, social media profiles, or existing assets, you can generate professional TV commercials in minutes. This technology democratizes access to TV-quality creative that previously required substantial production investment.
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- The AI creative approach also enables testing. Generate multiple versions, see what resonates, and iterate quickly. This agility wasn't possible when each creative required weeks of production time.
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- ### Connect CTV to your broader strategy
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- CTV advertising works best as part of an integrated marketing approach. Consider how it complements your existing channels. CTV builds awareness and consideration. Digital channels can capture the resulting demand. Many advertisers use CTV to drive brand searches, then capture those searches through paid search or SEO.
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- For local businesses, CTV's geographic targeting enables television advertising within your specific service area. Combined with [local TV advertising strategies](https://adwave.com/resources/local-tv-ad-cost), you can build local brand presence that supports all your marketing efforts.
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- ## The bigger picture
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- The CTV market's growth reflects broader transformations in media consumption and advertising that will continue shaping opportunities for years to come.
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- ### The streaming transformation is permanent
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- Viewers aren't returning to traditional cable. Each year, more households cut the cord, and younger generations have never subscribed to traditional pay TV. The [streaming share of TV viewing](https://adwave.com/resources/us-tv-viewing-share-streaming) continues growing, now exceeding 47% of all TV time. CTV's importance will only increase.
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- For advertisers, this means CTV literacy isn't optional. Understanding how to reach streaming audiences, measure results, and integrate CTV with other channels is becoming a core marketing competency. The businesses that develop this capability position themselves well for a streaming-dominant future.
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- ### The crossover point approaches
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- eMarketer projects CTV ad spending will surpass traditional TV ad spending for the first time in 2028, when CTV is expected to reach approximately $46.89 billion while traditional TV advertising is expected to be around $45.10 billion. This crossover represents a historic shift in television advertising economics.
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- ### Market maturity brings new opportunities
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- As the CTV market matures, new opportunities emerge. Retail media networks are using CTV to connect commerce data with TV advertising. AI-driven personalization is projected to power 80% of CTV ads by 2027. Interactive ad formats enable new engagement possibilities.
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- These developments benefit advertisers of all sizes. The infrastructure serving Fortune 500 companies is now accessible to local businesses through aggregated platforms and self-serve tools.
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- ## What experts are saying
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- Industry analysts and marketing experts have taken note of CTV's growth trajectory.
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- David Cohen, CEO of the IAB, [stated](https://www.iab.com/news/ctv-rebounds-to-double-digit-growth-in-2024/) that "2024 was a pivotal year for digital video advertising. With high-quality content moving to streaming, advancements in advertising technology, and an influx of new inventory accelerated growth for both consumers and advertisers."
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- Chris Bruderle, VP of Industry Insights at IAB, [noted](https://www.iab.com/news/ctv-rebounds-to-double-digit-growth-in-2024/) that "CTV and social video are core pillars of a brand's comprehensive and integrated media strategy. Consumer attention has already moved to these platforms, and advertisers are meeting them there, not just for the scale, but for the ability to precisely target, measure performance across devices, and drive real business outcomes."
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- [eMarketer's analysis](https://www.emarketer.com/content/one-of-largest-sources-of-new-video-ad-inventory-spending-ctv) highlights that CTV "will surpass traditional TV ad spending for the first time" in 2028, marking a historic transition in television advertising.
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- ## Common questions answered
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- **How big is the CTV advertising market in 2025?**
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- The U.S. CTV advertising market reached $33.35 billion in 2025, according to eMarketer. This represents approximately 16% growth from 2024 and roughly four times the market size from 2020. The IAB reports $26.6 billion based on advertiser-reported data, while eMarketer's broader ecosystem measure reaches $33.35 billion. Both point to the same directional story: sustained double-digit growth.
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- **Is CTV advertising still growing?**
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- Yes, CTV advertising continues growing at double-digit rates. IAB reports 16% year-over-year growth in 2024, and projections show continued growth through the forecast period. The market is expected to reach $38 billion in 2026, $42-47 billion by 2027-2028, and approximately $51 billion by 2029. Growth is driven by streaming adoption, ad-supported tier launches, and advertiser migration from traditional TV.
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- **When will CTV surpass traditional TV advertising?**
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- eMarketer projects CTV ad spending will surpass traditional TV ad spending for the first time in 2028. At that point, CTV is projected to reach approximately $46.89 billion while traditional TV advertising is expected to be around $45.10 billion. This crossover represents a historic shift in television advertising economics.
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- **What's driving CTV market growth?**
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- Multiple factors drive growth: continued cord-cutting shifting viewers to streaming (now 47%+ of TV time), major streaming services launching ad-supported tiers (Netflix, Disney+, Amazon Prime Video, Max), improved measurement and targeting capabilities, and self-serve platforms making CTV accessible to smaller advertisers. The IAB notes that 36% of CTV dollars are reallocated from linear TV and another 36% from social media.
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- **Can small businesses participate in the CTV market?**
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- Yes, self-serve platforms have democratized CTV access. While direct streaming service relationships may require substantial minimums, aggregated platforms like Adwave provide access to premium inventory starting at $50. The IAB specifically notes that "CTV is no longer just for brands with big budgets" due to these accessibility improvements.
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- **What are CTV CPMs in 2025?**
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- CTV CPMs range from $15-35 for small business advertisers using aggregated platforms, with an average around $25. Premium inventory on Netflix or Disney+ commands higher rates ($40-65). FAST services (Tubi, Pluto TV, Roku Channel) typically offer lower CPMs in the $15-20 range. As inventory has expanded, competitive pressure has moderated pricing.
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- ## Supporting data
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- Key statistics on the CTV advertising market in 2025:
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- - **2025 U.S. CTV ad spend:** $33.35 billion ([eMarketer](https://www.emarketer.com/content/one-of-largest-sources-of-new-video-ad-inventory-spending-ctv))
- - **Year-over-year growth 2024-2025:** Approximately 16% ([IAB](https://www.iab.com/news/ctv-rebounds-to-double-digit-growth-in-2024/))
- - **2026 projection:** Approximately $38 billion, ~14% growth
- - **2028 projection:** $46.89 billion ([eMarketer](https://www.emarketer.com/content/us-tv-connected-tv-ad-spending-forecasts-h2-2025))
- - **2029 projection:** Approximately $51 billion
- - **Total digital video 2025:** $72 billion (IAB)
- - **CTV share of digital video:** 46%
- - **Streaming share of TV viewing:** 47%+ ([Nielsen](https://www.nielsen.com/data-center/the-gauge/))
- - **Netflix ad tier users:** 94 million globally
- - **Netflix 2025 ad revenue:** Over $1.5 billion
- - **Disney+ ad-supported viewers:** 157 million globally
- - **YouTube CTV market share 2026:** Nearly 12% ($9.21 billion)
- - **Services with $1B+ ad revenue (2026):** 9
- - **Minimum to start CTV advertising:** $50 ([Adwave](https://adwave.com))
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- ## Get started with TV advertising
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- The CTV advertising market's growth creates opportunity for businesses of all sizes. With accessible entry points, AI-powered creative tools, and sophisticated targeting capabilities, there's never been a better time to test television advertising.
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- [Adwave](https://adwave.com/) makes CTV accessible to businesses of all sizes. Create a professional TV commercial in minutes using AI, then launch it across YouTube, Hulu, Peacock, and 100+ premium streaming channels starting at just $50.
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- No video production experience required. No massive budgets. No agency relationships needed.
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- [Create your free TV ad](https://adwave.com) and see how easy it is to reach your community on the biggest screen in their home.
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