The Marketing Architects
The CTV Hype Cycle: Separating Fact from Fiction
Apr 8, 2025
Catherine Walstad, Chief Media Officer at Marketing Architects, joins the conversation to unravel the complexities of Connected TV (CTV) advertising. With CTV ad revenue projected to soar, she discusses major advertiser concerns about transparency and ROI. Catherine emphasizes the dual role of CTV in both brand and performance marketing, while also addressing the challenges of measurement and high CPMs. The chat also dives into emerging trends like shoppable ads, making it clear that CTV is a pivotal part of modern advertising strategies.
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Quick takeaways
- Despite the projected $28 billion CTV ad revenue, transparency issues and fragmentation among providers hinder its potential effectiveness for advertisers.
- Marketers are transitioning from initial hype to a more informed approach, recognizing CTV's unique capabilities for both brand and performance marketing.
Deep dives
The Rise of Connected TV (CTV)
Connected TV (CTV) usage in the U.S. is projected to significantly increase in the coming years, with average viewing times expected to nearly double from 2020 to 2026. Advertisers are optimistic, with 61% planning to ramp up their CTV ad spend, largely due to the enhanced targeting and measuring capabilities that CTV promises. However, marketers face challenges such as fragmentation among numerous providers and transparency issues, leading to potential misallocation of ad budgets. Without addressing these concerns, CTV’s rapid growth may stall, as brands could redirect their ad spending to alternatives like retail media or social platforms.
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