Google launches Buyer Direct to shorten programmatic supply paths for CTV

This move signals a strategic shift toward Supply Path Optimization (SPO) by consolidating the technical layers between sellers and buyers. By allowing direct access to the ad server, Google is attempting to minimize the 'ad tech tax' and transparency issues that have historically plagued programmatic CTV. For the broader ecosystem, this puts pressure on independent SSPs as Google strengthens its full-stack identity. If agencies adopt these direct routes, we may see a decline in open marketplace liquidity for premium inventory, forcing competitors to offer deeper technical integrations to remain relevant. Watch for the adoption rates of Buyer Direct among major holding companies as a bellwether for direct-to-publisher transacting.

The launch of Buyer Direct aligns with a broader industry push for transparency and efficiency in the connected TV (CTV) market. According to a study by Google and BCG published in mid-2025, only 35% of live ad inventory was being transacted programmatically at the time, leaving significant high-value revenue in traditional direct-sold channels. This gap has driven a surge in ad tech consolidation; per Luma Partners in December 2024, ad tech M&A activity increased 73% year-over-year as companies raced to unify infrastructure. Major moves, such as the Mediaocean acquisition of Innovid for $500 million in late 2024 (per Marketing Brew), reflect the industry's desire for unified measurement and delivery.

Simultaneously, Google has been aggressively updating its underlying advertising terms to accommodate this shift toward automation. Effective July 1, 2026, Google’s updated Advertising Program Terms explicitly codify how advertiser-provided inputs, including URLs and conversational data, are used to feed AI-driven optimization across the ecosystem (per Search Engine Land, June 2026). This regulatory and policy framework supports products like Buyer Direct, which rely on automated decisioning to maintain the quality of premium inventory.

Furthermore, the CTV market is reaching a critical inflection point in spend. EMARKETER forecasted in early 2026 that US CTV ad spending would hit $37.95 billion this year, a 15% increase that keeps it on trajectory to overtake traditional TV by 2028. As buyers reallocate budgets—with IAB reporting a 36% shift from linear to CTV in 2025—platforms are prioritizing solutions that connect TV and digital planning in a single interface. Google's focus on home-screen 'real estate' also mirrors recent hardware trends; device manufacturers (OEMs) are increasingly positioning the smart TV operating system as the primary gatekeeper for discovery and monetization.