Connected TV (CTV) has matured from a fast-growing channel into an established pillar of video advertising. In 2026, the CTV landscape faces significant shifts: Streaming platform consolidation, expanding ad loads, the rise of interactive and shoppable formats, and deepening integration with retail media. These trends are reshaping how advertisers plan, buy, and measure CTV campaigns.

This FAQ addresses the dynamics marketers must navigate as CTV crosses key tipping points against linear TV.

What is CTV advertising?

CTV advertising refers to digitally sold ads appearing on television screens through internet-connected devices. This includes smart TVs with built-in streaming capabilities and external devices like Amazon Fire TV Sticks, Roku players, Apple TV, and gaming consoles. CTV ads appear during streaming content on platforms like Netflix, Hulu, Amazon Prime Video, and YouTube.

CTV differs from traditional TV advertising in three ways: Ads can be targeted to specific audiences using data signals, performance can be measured at the household or device level, and formats can include interactive elements like QR codes or clickable overlays. CTV does not include ads served on phones, tablets, or computers, per EMARKETER's definition. Those fall under OTT advertising.

How is consolidation reshaping the CTV landscape in 2026?

Major mergers and streaming integrations are concentrating CTV ad budgets among fewer players:

• Disney+/Hulu integration. Hulu will fold into Disney+ in 2026, combining two of the largest ad-supported streaming audiences. Because Hulu's ad revenues currently more than double those of Disney+, the integration will create a combined service with significant scale, according to EMARKETER.
• Warner Bros. Discovery acquisition interest. Netflix and Paramount Skydance have expressed interest in acquiring WBD, parent company of HBO Max. A merger would combine HBO Max with a larger ad revenue portfolio.
• Nexstar-Tegna merger. In local TV, this combination creates one company owning 265 stations with ad revenues exceeding most streaming services.

These consolidations will simplify media planning for some advertisers while concentrating negotiating power.

What interactive and shoppable ad formats are gaining traction on CTV?

Interactive CTV ads are moving from experimental to essential. Engagement per impression reached 1.94% in Q2 2025, nearly double the 1% rate from Q2 2024, according to EMARKETER industry KPI data provided by BrightLine.

Interactive formats prove effective because they drive measurable actions:

• Shoppable overlays enable viewers to scan QR codes or click to purchase, achieving bottom-funnel conversions that standard video cannot deliver.
• Performance metrics show interactive ads boost unaided recall by 36%, foot traffic by 13%, and brand affinity by 33%, per BrightLine research.

Some 41.8% of US marketers already use interactive and shoppable formats across social and CTV, according to April 2025 data from EMARKETER and Smartly. As ad loads increase across streaming platforms, interactive formats help brands stand out from conventional spots.

How is retail media converging with CTV?

Retail media and CTV are merging through data partnerships and acquisitions that connect ad exposure to purchase behavior:

• Walmart-Vizio deal. Walmart's acquisition of smart TV manufacturer Vizio highlights how retailers can expand ad reach while leveraging first-party purchase data, per EMARKETER analysis.
• Amazon Prime Video. With over 315 million global ad-supported viewers, Prime Video combines CTV scale with Amazon's retail data for closed-loop attribution.
• Retailer CTV expansion. Albertsons and other grocers are expanding off-site shoppability, enabling brands to reach shoppers on streaming platforms with ads linked to purchase.

Retail media CTV ad spend is growing roughly three times faster than retail media search, according to EMARKETER. This convergence addresses CTV's historical measurement challenge by connecting impression data to transaction data.

What are pause ads and rewarded ads on CTV?

Beyond standard pre-roll and mid-roll spots, CTV platforms are introducing formats that capture attention without interrupting content:

• Pause ads appear when viewers pause streaming content, displaying brand messages during a natural break. These ads deliver a 34% lift in unaided recall, per BrightLine data cited by EMARKETER. LG recently introduced screensaver ad formats that demonstrate the race for CTV attention.
• Rewarded ads offer viewers incentives (like ad-free episodes or bonus content) in exchange for watching a full ad. These prove at least somewhat effective across upper-, mid-, and lower-funnel stages, according to a July 2025 survey of US marketing professionals.

Both formats offer high-receptivity environments. As CTV fragments across platforms, pause ads represent one of the few standardizable formats available across services.

Why are CTV ad loads increasing and what does it mean for advertisers?

Streaming platforms are expanding ad inventory to grow revenue, creating both opportunity and risk:

• Prime Video doubled ad loads after launching its ad business in early 2024, according to EMARKETER. Other platforms are following.
• More inventory, more competition. Increased supply offers advertisers more buying options but also crowds the viewing experience.
• Ad fatigue concerns. Overexposure causes declining attention, engagement, and brand favorability. EMARKETER reports that fatigue threatens brand perception in key demographics.

The response: Advertisers must differentiate through creative quality and interactive formats rather than relying on frequency alone. Lighter ad loads historically justified CTV's premium pricing. As loads increase, streaming CPMs are flattening as supply grows.

Who are the leading CTV ad revenue platforms in 2026?

CTV ad revenues concentrate among a handful of major players, with rankings shifting due to mergers:

Top tier (exceeding $3 billion US CTV ad revenues):

• Amazon (Prime Video, Freevee, Fire TV)
• Disney (Disney+ integrated with Hulu)
• Google (YouTube)
• Roku

Growth tier:

• Netflix's ad tier continues scaling after its late 2022 launch
• Peacock (NBCUniversal)
• Paramount+ and Pluto TV (Paramount)

Emerging:

• HBO Max holds approximately 1.5% of US CTV ad spending but could gain share through acquisition

Retail is the largest ad spending category on CTV, representing just under one-fifth of all spending, followed by CPG, automotive, and financial services, per MediaRadar data cited by EMARKETER.

How should marketers optimize CTV campaigns in 2026?

Effective CTV strategy in 2026 requires adapting to consolidation, rising ad loads, and new format capabilities:

1. Prioritize interactivity. With engagement rates doubling YoY, advertisers who skip interactive formats miss opportunities to drive measurable outcomes beyond awareness.
2. Integrate retail media data. Partnerships connecting streaming platforms to retailer purchase data enable closed-loop measurement. Prioritize platforms offering this attribution.
3. Manage frequency across platforms. As ad loads grow, coordinate across streaming services to avoid overexposure. Deduplicate where measurement allows.
4. Test emerging formats. Pause ads and rewarded ads offer high-attention environments outside standard ad pods. Allocate test budgets to evaluate performance.
5. Prepare for consolidation. Disney+/Hulu integration and potential WBD mergers will change buying dynamics. Build flexibility into upfront commitments.

Balance reach objectives against the risk of ad fatigue by diversifying formats and monitoring frequency.

EMARKETER forecast data was current at publication and may have changed. EMARKETER clients have access to up-to-date forecast data. To explore EMARKETER solutions, click here.

We prepared this article with the assistance of generative AI tools and stand behind its accuracy, quality, and originality.