As Budgets Shift To CTV Ads Brands Navigate A New Era Of Streaming Options
April 19, 2023
Media consumption is shifting—and advertising dollars are moving with it.
The glut of streaming services in the market, with their on-demand nature, unlimited DVRs, and exclusive content offerings, has pushed connected TV (CTV) into the top tier of digital media. It’s a trend impacting both traditional television revenue and how brands allocate their marketing budgets.
As this shift accelerates, brands are rethinking their CTV advertising strategy and how it fits into a broader media mix.
The Shift from Linear TV to Streaming
Viewers are cutting the cord and moving to streaming services.
“Less than half of all households watch linear TV,” said Aaron Grote, VP of Digital Products at Stirista. “We see it across all age ranges.”
This transition is further explored in cutting cable in favor of streaming, where changing consumer behavior is reshaping the media landscape.
CTV ad spending continues to rise while traditional TV declines, reinforcing the long-term shift toward streaming-first consumption.
Why Ad Budgets Are Moving to CTV
Alongside changing viewer behavior, advertisers are reallocating budgets.
Brands are increasingly moving spend away from traditional channels like search and toward CTV, where targeting, measurement, and engagement are more advanced.
This aligns with broader trends in four trends driving digital marketing in 2023, where data-driven decision-making and channel diversification are becoming essential.
How to Decide Where to Allocate Your Ad Budget
As brands evaluate where to invest, the focus should be on outcomes.
“Find your audience, then build a media plan. Measure at every step. Optimize as you go.”
Understanding performance is critical here, especially when improving return on ad spend across channels.
Programmatic buying also plays a key role, giving advertisers flexibility and control. If you’re exploring this approach, it’s important to understand what programmatic advertising is and how it enables smarter media buying.
The Value of the Right CTV Partner
Working with the right partner can help brands navigate the complexity of CTV advertising.
“You want a partner that is doing the right thing, as the steward of a brand’s budget,” Grote said.
Real-world performance examples, like this CTV advertising sweepstakes campaign, demonstrate how effective strategy and execution can drive measurable results.
CTV Advertising: Beyond Traditional Awareness
CTV combines the awareness power of traditional TV with the precision of digital.
“CTV offers everything that we’re used to when thinking about television as an awareness platform—but now you get the added benefit of direct response.”
This shift toward performance-driven TV is further supported by innovations in measurement and the power of CTV ROAS.
The Future of CTV Ad Spending
CTV advertising is no longer emerging—it’s becoming the dominant channel.
As competition increases, brands that adopt data-driven strategies, flexible media planning, and strong measurement frameworks will have a clear advantage.