CTV gets 47.5% of viewing, but only 8% of ad spend
In a blog post, the CEO of marketing agency CS & Co. argues that a significant arbitrage opportunity exists in CTV advertising, citing data that US streaming viewership has reached 47.5% (Nielsen, Dec. 2025) while accounting for only about 8% of total ad spend. The author frames CTV as a "blue ocean" for advertisers, suggesting this first-mover advantage and its associated lower CPMs will diminish by 2027-2028 as ad spend catches up to viewership. The post advises advertisers to focus on premium supply, server-side conversion tracking, and robust measurement to capitalize on the current market inefficiency.
Key Takeaways
- Nielsen reported streaming at 47.5% of all U.S. television viewing in December 2025; on Christmas Day it hit 54%.
- eMarketer put 2025 U.S. CTV ad spend at $33.35 billion versus more than $400 billion in total U.S. ad spend.
- The post says CTV’s first-mover advantage should compress as ad spend catches up to viewing, with 2028 cited as the year CTV surpasses traditional TV ad spend.
- The author recommends premium supply, server-side conversion APIs, and triangulated measurement using CAPI, Bayesian MMM, and geo-holdouts.
- The post names Disney, Netflix, Hulu, Peacock, Max, Paramount+, Tubi, and The Roku Channel as examples of premium CTV inventory.
Why It Matters
The immediate takeaway is simple: viewership has already moved faster than ad dollars, leaving CTV underpriced relative to its share of attention. That creates room for advertisers with better buying and measurement setups to capture lower CPMs on premium inventory. The broader ecosystem angle is that the gap will not stay open indefinitely; eMarketer’s forecast has CTV ad spend rising to $46.89 billion by 2028, when it would pass traditional TV ad spend for the first time. What to watch: whether spend growth closes the attention-to-dollar gap as quickly as the post projects.
Read full article at thecscompany.com