Advertisers spent $1 billion buying advertising on connected TV in June, a significant milestone, according to Vivvix, Kantar’s ad tracking unit, in its first-half report.
“This milestone validates the projections on CTV’s ascendency from experimental to a ‘table stakes’ medium,” Andrew Feigenson, CEO of Vivvix, said. “It’s where viewers are increasingly spending their time, and in order to be competitive, brands must play ball on those fields, and understand what competitors are doing on these platforms. The data really informs brands where the white space is within the video journey as well. We noticed, for example, a dearth of pet brands advertising on Disney Plus in June. That signals a real opportunity.”
CTV hitting the billion-dollar mark puts an exclamation point on the growth of digital Advertising. Vivvix says digital formats generate 70% of ad spending and video is the fastest growing format.
Ad-supported video on demand (AVOD) grew 79% year-over-year in 2022 and totaled 5% of all online video.
The grow in spending on digital and connected TV advertising comes as traditional linear TV loses viewing to streaming and cord-cutting.
“Being able to take a broader view of the video landscape helps advertisers see the strategy their competitors are using across various channels,” Feigenson said.
"The shift of ad dollars between new and emerging platforms can make it difficult for advertisers to connect the dots, so it’s important for brands to have access to a wider lens. We are confident that more brands will continue to allocate more of their advertising budgets to CTV and other digital media, which will affect traditional TV advertising,” he said.
The Vivvix data include spending on streaming platforms including Hulu, Peacock, Paramount Plus, Pluto TV, Discovery Plus, Max, Tubi, Roku and, starting in May, Disney Plus.
Also growing, according to Vivvix is YouTube, which garnered $1.4 billion in ad spend in June.
Vivvix said it anticipates that advertiser investment on YouTube will continue to grow, especially as nonlinear properties continue to capture more viewership.
