Overall digital ad spend in the United States is set to rise by 11.2% in 2023, to $271.2 billion. Advertising expenditure on social media alone is forecast to total $72.33 billion. But what about connected television (CTV)?

As CTV penetration rises, so has CTV ad spend. In fact, experts say CTV advertising growth is set to outpace all major ad channels but retail media this year. Here’s a look at connected TV ad spend between 2021 and 2027.

Start selling online now with Shopify

Start your free trial

CTV ad spend: 2021–2023

According to a recent market report, CTV ad spend in the US hit $17.3 billion in 2021. This was a 58.2% surge from the previous year. Connected TV ad spend continued to rise the following two years, albeit at a slower rate. In 2022, a 19.6% annual increase took total CTV ad spend to $20.7 billion. 

By experts’ analysis, CTV advertising’s growth is set to rise slightly to 21.2% this year, to $25.1 billion.

→ Click Here to Launch Your Online Business with Shopify

CTV ad spend: 2024–2027 forecast

Analysts expect CTV advertising’s growth to continue for at least four more years. In 2024, it is forecast to rise by 16.8%, to $29.3 billion. Growth rates of 12.9% and 11.5% are expected in 2025 and 2026, respectively. This will take CTV ad spend to $33.1 billion in 2025, and $36.9 billion in 2026.

By 2027, expenditure on connected TV ads is forecast to cross the $40 billion mark, as spending rises by 11%. 

From 2021 to 2027, annual CTV ad spend is set to more than double. The total increase is expected at $23.6 billion—a percentage rise of 136% and an average annual growth rate of 15.5%.

CTV ad spend: share of digital ad spend

Connected TV ads expenditure’s share of total digital ad spend is also expected to increase from 2021 to 2027. In 2021, this was recorded at 7.8%. In other words, out of every $100 spent on digital ads, $7.80 was on CTV ads. 

This rose to 8.5% and 9.5% in 2022 and 2023, respectively. In 2024, CTV ads’ share of digital ad spend is expected to hit 10%. This will continue to rise over the years, and by 2027, $10.40 of every $100 (10.4%) spent on digital ads will be on connected TV ads. 

Start selling online now with Shopify

Start your free trial

Want to learn more?