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Video ads account for the vast majority of CTV ad revenues— of the $6.94 billion spent on CTV in 2019, $6.80 billion went to video ads.The remaining portion comprised of banner ads, native outlays and sponsored searches shown on
CTV platforms.
Overall, the CTV ad landscape is strongly dominated by three companies:YouTube, Hulu and Roku.YouTube is the biggest recipient of CTV ad spending, accounting for 40% of our total CTV ad spending estimate, while Roku and Hulu collectively account for an additional 30%. About seven in 10 total US CTV ad dollars go to these three companies.
Meanwhile, CTV programmatic video ad spend will grow considerably to $6.26 billion by 2021. Most CTV ad spending
will be programmatic, but just a small portion of total programmatic spending goes to CTV. We forecast that in 2019, CTV would represent 6.1% of total programmatic display ad spending, and in 2021, CTV will take in 8.1% of all programmatic display spending.
Ad spending projections from multiple research firms vary considerably, but one thing is clear: Investment in connected TV (CTV) is soaring. For the foreseeable future, CTV ad spending will increase by double digits annually. In our first-ever forecast for US CTV ad spending, we estimate that it will hit $14.12 billion by 2023, accounting for 7% of total digital ad spending and nearly 5% of total media ad spending.