By Ray Green (+ai), Contributor
Connected TV (CTV) advertising is no longer a “next big thing” — it’s the current direction of digital media, and it’s picking up speed.
In a landmark forecast, eMarketer projects that U.S. ad spending on CTV will surpass linear TV by 2027. This isn’t just a milestone. It’s a signal that marketers are fully embracing the precision, flexibility, and efficiency that digital television environments offer over their traditional counterparts.
From Broadcast to Precision
Linear TV, while still powerful in reach, continues to lose ground as consumers cut the cord and shift to streaming. CTV is on pace to generate $33.35 billion in U.S. ad spend by 2025, with spend accelerating thereafter. In contrast, traditional TV budgets are on the decline.
Innovid’s 2024 CTV Advertising Insights Report showed that 53% of total video ad impressions in 2023 were on CTV — a 12% increase year-over-year. The audience is already there, and brands are following.
The Role of Contextual and Behavioral Data
Privacy pressures are mounting, and advertisers are looking beyond behavioral tracking. Contextual targeting is gaining traction as a scalable, privacy-first alternative. A Proximic by Comscore report revealed that 78% of advertisers will increase or maintain contextual targeting spend this year.
Platforms like Loyal are ahead of the curve. With contextual signals across 170,000+ mobile and CTV apps, Loyal allows advertisers to align messaging with the content being consumed — whether that’s a fitness show, cooking video, or financial news clip.
Loyal’s Contextual PMPs with Behavioral Boost — spanning CTV, in-app, and digital out-of-home (DOOH) — offer a flexible and powerful way to reach high-intent audiences. These privacy-first solutions align with leading industry practices, delivering relevant, high-performing ad experiences without compromising user data.
Just as NBCUniversal partners with Instacart and Disney with Walmart Connect to harness first-party insights, Loyal’s platform empowers advertisers with contextual intelligence enhanced by behavioral signals — all without relying on invasive tracking methods.
Validating the Shift: Nexad and Contextual AI
Even startups are taking notice. Nexad recently raised $6M to integrate contextual ads into AI chat applications. Their premise? Real-time, content-driven advertising is more effective — and future-proof.
Preparing for 2027
For agencies and brands, this is the time to reassess:
- Are your ad strategies aligned with where audiences are watching?
- Are you investing in CTV as a growth channel?
- Are you using contextual tools that protect privacy and boost relevance?
Loyal’s contextual exchange offers brands a smarter, compliant, and scalable path to results — especially in a world where ad environments need to match both attention and intent.
Conclusion
CTV overtaking linear TV is more than just a change in spend. It’s a reflection of how consumers now engage with content — and how advertisers must evolve in kind. The future is targeted, respectful, and contextually aligned.
And it’s arriving faster than most expected.
