CTV on the rise: why advertisers are increasingly turning to Connected TV
The digital advertising market in the US is experiencing a fundamental shift, and Connected TV (CTV) is at the center of it. More and more brands are moving their budgets away from traditional channels like social media and paid search towards CTV. What was once considered a supplement is now developing into the new standard in digital marketing.
According to the current "Digital Video Ad Spend & Strategy Report" by the Interactive Advertising Bureau (IAB), 36% of US advertisers are shifting budgets from social media into the CTV area. Also remarkable: search engine advertising too, long an untouchable performance channel, is increasingly being cut in favor of CTV. Almost a third (32%) of companies plan to reallocate money from paid search into CTV.
Source: 2025 Digital Video Ad Spend & Strategy Report: Part One; IAB, Advertiser Perceptions, and Guideline
CTV as the new performance star
What used to be regarded primarily as a branding channel is establishing itself today as a genuine performer: CTV convinces with strong performance values, and thereby hits exactly the nerve of the times. In a market where advertisers are under increasing pressure to deliver clear KPIs and return on investment (ROI), CTV now offers exactly that: measurable, scalable and targeted campaigns.
According to the IAB, more than half of the surveyed companies plan to invest even more strongly in performance-oriented CTV campaigns in the coming months. The shift towards data-driven, ROI-focused advertising makes CTV the most attractive growth area in the industry.
Ride the CTV wave!
Book a demoRecord growth and future potential
The US market for digital video advertising grew by a hefty 18% in 2024 and is expected to gain another 14% in 2025, to a total of 72.4 billion US dollars. Remarkable: digital video spending overtakes investment in linear TV for the first time. The market share of digital video rose from 51% to 58% within one year, a clear sign of the shift in media usage and the change in purchasing behavior.
Connected TV stands in the spotlight as the clear beneficiary. With its seamless interplay of moving-image content across streaming models like AVOD, SVOD, FAST and BVOD, targeted delivery and advanced measurability, CTV meets exactly the requirements of modern advertising strategies. A similar development is emerging in Germany too: the country now ranks among Europe's fastest-growing streaming markets. Anyone still unsure about the terminology around CTV can find a quick rundown in the article OTT, CTV and OLV.
Growth is especially dynamic in Europe: CTV ad impressions rose 33% in the second half of 2025 compared with the same period a year earlier, versus 11% in the US (according to IAB Europe's CTV 101 Guide 2026, based on the FreeWheel Video Marketplace Report, H2 2025). Programmatic trading picked up across Europe too, with programmatic impressions growing 38% year over year (IAB Europe 2026, FreeWheel VMR H2 2025).
High acceptance and strategic relevance
68% of the surveyed advertisers now classify CTV as a "must-buy" channel, a higher value than for social video (62%) or even national television (39%). This underlines: CTV is no longer an option, but an indispensable component of every effective media plan.
Transparency and measurability in focus
There is still optimization potential in cross-platform measurement and standardization, but the industry is working hard on solutions. For many advertisers this is not an obstacle but an incentive to position themselves early and secure competitive advantages.
Conclusion: CTV is the future of digital marketing
Connected TV is not just a trend. It is the driving force behind the current transformation in the digital advertising market. With its combination of reach, targeting accuracy, performance and increasing measurability, CTV will gain even more importance in the coming years. Anyone who invests today secures the best spots in tomorrow's advertising market. What CTV actually is and how it works is explained in the fundamentals article What Is CTV Advertising?. Book a demo now and see how easy it is to get started with CTV advertising on onescreen.