CTV Market to Nearly Double by 2032, Driven by AI and Smart TV Adoption

The CTV market's anticipated near-doubling signifies a continued shift in how content is consumed and monetized, with AI playing a central role in personalization and advertising. This accelerates the convergence of broadcast television and digital streaming, demanding that platforms and advertisers adapt to new audience engagement models. Companies should watch for further AI-powered advertising solutions and strategic partnerships that integrate content, devices, and ad tech to capture market share in this evolving ecosystem.

The CTV landscape is experiencing significant shifts beyond market growth. Digiday Research (Q1 2026) indicates that mergers could reshape the industry, with The Walt Disney Company planning to merge Hulu with Disney+ by the end of 2026, and Paramount intending to combine Paramount+ and Max. These consolidations aim to reduce market fragmentation and strengthen scale, potentially making audience targeting easier for marketers.

Emarketer (May 2026) reports that US CTV upfront ad spending ($17.73 billion) will surpass primetime linear TV ad spending ($16.98 billion) for the first time in 2026, as advertisers increasingly focus on performance outcomes over just reach. However, measurement challenges persist, particularly with varying KPIs across platforms (Digiday, Q1 2026); for example, marketers primarily use impressions on Peacock, Max, and Disney+, while click-through rates are favored on Netflix and Amazon Prime Video.

Samsung Ads' annual Behind the Screens report (June 2026) highlights fragmented viewing as the new norm, with audiences using an average of five apps per household in 2025 and total app launches rising 8% year-over-year. The home screen has emerged as a primary discovery moment, accessed more than five times daily, signifying its importance for content providers and advertisers navigating fluid viewer habits.

Despite the growth and strategic shifts, marketers are hesitant to implement AI directly into CTV campaigns; 82% reported not using AI for marketing in streaming (Digiday, Q1 2026). This contrasts with other channels like social media, where 51% use AI for marketing, suggesting an opportunity for CTV platforms to further integrate AI tools for ad optimization and creative production, such as Roku's embedded AI in its ad tech stack.

Furthermore, Beet.TV (June 2026) emphasizes outcome-based optimization as crucial for CTV's full potential, citing FreeWheel's partnerships with Stagwell and Walmart Connect. These collaborations prioritize tying ad exposure directly to consumer actions, addressing the historical challenge of proving TV advertising's effectiveness and bridging traditional TV buying criteria with programmatic signals.