While TV ad rates have risen 36% since 2015, audiences have fallen by 20%.
According to eMarketer, connected TV (CTV) advertising revenue will grow strongly to reach $14.4 billion in 2021. This is a 60% increase from CTV ad revenue last year. Similarly, spending is projected to grow by $10 billion to reach $24 billion in 2023.
TV ad spend will be $66 billion in 2021, which is 7% lower than ad spend in 2016. On the other hand, ad spending on traditional TV is estimated to increase to $67.9 billion in 2022. With TV audiences dwindling in number, ad rates are rising to maintain the net revenue earned.
While advertisers are paying more to target audiences who still watch traditional TV, they are also transferring some money to CTV to reach younger audiences who no longer watch TV.
[4 minute read]