Ad spend on connected TV grew nearly 40% in Q3

Surprise, surprise: Brands are spending more on connected-TV ad platforms. Lots more.

Connected-TV advertising spend across all product categories was up nearly 40% year over year in the third quarter, according to data from Standard Media Index.

Total spending on CTV in the quarter reached $926 million, according to SMI, which tracks “actual ad spend among all major holding companies and most major independents” to estimate national brand spending. That’s compared to last year, when advertisers spent $664 million on CTV in the third quarter.

Some of the highest spenders include:

• Travel brands, which upped their CTV spend by 159%
• Auto brands, which spent 96% more
• And restaurants, which spent 90% more on CTV ads than a year ago

On the other end of the spectrum, apparel and accessories brands increased their spend the least, with only a 0.5% uptick compared to a year ago. CPG and tech brands also increased their CTV spend in the low double digits, according to SMI.

Bucking the trend: The growth in connected TV comes during an overall decline in total advertising investment across all media, which dipped 3% year over year in October to $8.5 billion, according to SMI. But the growth tracks with year-over-year CTV audience growth and the subsequent increased advertiser interest. According to eMarketer, advertisers are projected to spend more than $37 billion on CTV in the US in 2025.

+1: Advertiser investment in CTV is coming just as many advertisers are pulling back on traditional TV spending.—KS