Report Snapshot

With measurement disputes, weak upfronts, and a writers strike, Q2 was rough in the digital video and TV space. On the bright side, connected TV (CTV) continued to make gains in time spent and ad spending. The soft upfronts mean that advertisers should prepare for a tight scatter market in ensuing months.

KEY POINTS THIS REPORT WILL EXPLORE

1. CTV is catching up to linear TV faster in time spent than in ad spend. As streaming replaces TV viewership, ad dollars aren’t being replaced on a 1-to-1 basis. Marketers need to account for streaming’s lighter ad loads and the prevalence of ad-free viewing.
2. Netflix experiences advertising growing pains. The streaming king’s advertising launch has been slow going, and the company canceled its first in-person upfront. But its massive audience still has advertisers salivating.
3. Upfront linear TV ad spend will shrink this year. Meanwhile, upfront digital video spending is growing. As linear shrinks and digital video grows, it is paramount for marketers to get consistent measurement across channels.

KEY STAT: Over a five-year period, CTV time spent among US adults will more than double, from about 1 hour per day in 2019 to over 2 hours per day in 2024, per our forecast.