But the shift of ad dollars from linear to connected TV (CTV) is not the inevitable consequence of changing audience viewing habits. Rather, it is a consequence of advertisers feeling like they have more control over campaign targeting and measurement in CTV compared to linear.
Audience time spent on linear TV is dropping nearly 50% , from 4:37 hours in 2012 to a projected 2:46 hours in 2024. But the drop in ad spending over the same period is less than 5%. In 2022, linear TV ad spend even grew by $1 billion. Meanwhile, time spent on CTV has doubled over the last four years, but ad spending has tripled during the same period. In other words, CTV advertising is growing at a faster pace than can be explained by its growth in viewership.
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