Programmatic buying grows as CTV ad formats evolve

By NewscastStudio January 28, 2025

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With the 2024 Summer Olympics and a surge in political advertising, connected TV (CTV) ad spending expanded significantly across streaming platforms, according to a new report by Advertiser Perceptions.

The “CTV Landscape 2H 2024” study examines trends in how agencies and marketers invest in major CTV advertising providers as they look ahead to 2025.

The report, based on surveys conducted with 355 CTV advertising decision-makers, highlighted the continued shift toward digital buying practices and advanced ad technology. Marketers increasingly value first-party data and cleanroom solutions when selecting advertising partners, while innovative ad formats like shoppable and pause ads are becoming key tools for engagement.

The study noted changes in how marketers buy inventory on subscription video-on-demand (SVOD) and free ad-supported TV (FAST) platforms.

While direct deals remain dominant for SVOD, programmatic guaranteed transactions grew by 5 percentage points compared to 2023. For FAST inventory, advertisers were more likely to turn to open markets.

Access to first-party data was a leading factor for advertisers when choosing CTV partners.

First-party and behavioral data targeting are now regarded as the most valuable CTV targeting capabilities. Additionally, original content continues to drive investment, with 56% of respondents ranking it as the top factor in partner selection. Other top considerations included exclusivity, live content, and sports programming.

Innovative ad formats have grown significantly, accounting for 25% of all CTV ads. Half of the respondents reported investing in shoppable ads over the past year, with 40% planning to increase spending on such formats in 2025.

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Seventy-five percent of respondents rated the ability to buy across linear and streaming platforms with a single provider as an essential feature.

The integration of linear and digital strategies is increasingly important, with advertisers reporting an equal weighting of these channels in combined campaigns.

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