CTV Ad Spend: 30% by 2027 to Win Audiences

Listen to this article · 9 min listen

Key Takeaways

  • Advertisers should allocate at least 30% of their video budget to Connected TV (CTV) by 2027 to capture growing audience attention.
  • Implementing a holistic attribution model that spans CTV, digital audio, and traditional channels is essential for accurate ROI measurement.
  • Prioritize first-party data integration with programmatic CTV platforms to enable precise audience targeting and reduce ad waste.
  • Marketers must develop creative assets specifically tailored for CTV’s larger screen and lean-back viewing experience, moving beyond repurposed linear TV spots.

Georgia-based artisan furniture maker, “The Crafted Grain,” faced a looming crisis. For years, their marketing strategy had been as sturdy as their hand-hewn oak tables: a mix of local print ads, a strong social media presence, and carefully placed spots on HGTV during prime time. But by late 2025, founder Sarah Chen noticed a disturbing trend. Their online sales, while still respectable, weren’t growing at the rate they once did, and their traditional TV campaigns felt like shouting into a void. Their target audience – affluent homeowners aged 35-60, who appreciated craftsmanship and design – seemed to be slipping away from conventional media. Sarah knew they needed to adapt, to find new ways to connect with these discerning buyers. The challenge? Understanding the rapidly shifting digital media landscape, particularly the burgeoning opportunities in emerging channels like Connected TV (CTV) and digital audio. How could a relatively small business, even one with a premium product, effectively compete in this complex new world of advertising?

I’ve seen this scenario play out countless times. Clients, often successful in their niche, suddenly realize the ground beneath their marketing feet is shifting. The old playbooks, while not entirely obsolete, just don’t deliver the same punch. My firm, Zenith Digital, specializes in helping brands navigate these exact transitions. Sarah’s initial call was typical: “We’re hearing a lot about CTV, but it feels like the Wild West. Is it truly effective for a brand like ours, or just another shiny object?” My answer was unequivocal: CTV and digital audio aren’t just effective; they’re becoming indispensable, particularly for brands looking for engaged, high-value audiences.

The core problem Sarah faced was a common one: audience fragmentation. People aren’t just watching linear TV anymore; they’re streaming movies on Netflix, binging series on Hulu, catching up on news via Peacock, and listening to podcasts on Spotify or Apple Podcasts. This isn’t just about where they consume content; it’s about how they consume it. CTV offers a lean-back, immersive experience, much like traditional TV, but with the targeting capabilities of digital. Digital audio, on the other hand, captures attention during commutes, workouts, and focused work, often reaching audiences when visual media cannot.

“The biggest mistake I see brands make,” I told Sarah during our initial consultation at our Buckhead office, “is treating CTV like just another YouTube ad placement. It’s not. It’s a completely different beast, demanding its own creative approach and measurement strategy.” According to a recent Nielsen report, time spent with streaming content surpassed linear TV for adults 18+ in Q4 2024, a trend that has only accelerated. This means if you’re not on CTV, you’re missing a significant portion of your potential audience.

We started with a deep dive into The Crafted Grain’s existing customer data. We looked at their website analytics, CRM data, and even their physical showroom visitor logs from their location near the Atlanta Decorative Arts Center (ADAC). This allowed us to build robust audience segments. For instance, we identified a segment of customers who frequently purchased items over $5,000, lived in specific affluent zip codes around North Fulton and Cobb counties, and had shown interest in interior design content online. This granular understanding is the bedrock of successful CTV advertising. You can’t just spray and pray; you need precision.

Our strategy for The Crafted Grain involved a multi-pronged approach. First, we earmarked a significant portion of their video budget, about 40%, for CTV. This was a bold move for them, but one I insisted upon. We then identified key programmatic CTV platforms that could reach their specific audience segments. We chose to focus on platforms like The Trade Desk and Magnite, which offered robust targeting capabilities through data management platforms (DMPs) and direct integrations with premium publishers.

Next came the creative. This was a critical point. Sarah initially wanted to repurpose their existing 30-second linear TV spots. “Absolutely not,” I countered. “Those spots were designed for a different context. On CTV, viewers are often more engaged, more discerning. We need something that tells a story, that showcases the craftsmanship in a way that resonates on a larger screen.” We worked with a local production house in Midtown Atlanta to develop a series of 15-second and 30-second spots that focused on the process of furniture making – the hands-on artistry, the sustainable sourcing, the bespoke nature of their pieces. These weren’t just product ads; they were brand narratives. We also created shorter, 6-second bumper ads for pre-roll on shorter-form CTV content.

Simultaneously, we launched a complementary digital audio campaign. Our target audience often listened to podcasts on interior design, home improvement, and even fine arts. We used platforms like Spotify Ad Studio and Pandora for Brands to target specific podcast genres and listener demographics. The audio ads were narrative-driven, painting a picture of the warmth and quality of The Crafted Grain’s furniture, using evocative language to spark imagination. The goal here was frequency and subtle brand reinforcement, creating a holistic experience across different media touchpoints.

Now, for the numbers. This is where the rubber meets the road. We launched the campaign in Q1 2026. Within the first three months, the results were compelling. We saw a 28% increase in website visits from users exposed to the CTV campaign, and crucially, a 15% uplift in average order value from those who converted. The digital audio campaign, while not driving direct conversions at the same rate, contributed to a 10% increase in brand recall among surveyed listeners.

One specific campaign stands out. We ran a CTV campaign targeting households with an income over $150,000, located within a 50-mile radius of their showroom, who had also shown online behaviors indicative of interest in luxury home goods. We ran a series of 30-second spots showcasing their new custom dining table collection. We used frequency capping of 3 views per week per household to avoid ad fatigue. After seeing the CTV ad, users were then retargeted with display ads on other digital channels. The results were astounding: a 7.2% click-through rate (CTR) on the CTV ads, significantly higher than the industry average of 1-2% for video, and a 3.5x return on ad spend (ROAS) for this specific segment. We even had a few customers mention in their showroom visits that they “saw their beautiful tables on their streaming service.” That’s the real-world impact we’re talking about.

Measuring success in this fractured media environment requires a sophisticated approach. We implemented an advanced attribution model that considered view-through conversions from CTV and listen-through conversions from digital audio, not just last-click. This meant integrating data from Google Analytics 4, their CRM, and the programmatic platforms themselves. It’s not enough to just look at impressions; you need to understand the entire customer journey. This holistic approach, I believe, is non-negotiable for future success. As IAB reports consistently show, consumers are moving seamlessly between devices, and your measurement needs to keep up.

My advice to any brand looking at this space? Don’t dip your toes; jump in. But jump in smartly. Invest in understanding your audience deeply. Create compelling, platform-specific content. And, most importantly, build a robust measurement framework. The future of advertising isn’t just about where you advertise; it’s about how intelligently you connect with your audience across every screen and speaker.

The Crafted Grain, under Sarah’s leadership and with a renewed marketing strategy, is now thriving. Their workshop in the West End is bustling, and their online sales continue to climb. They’ve embraced the complexity of emerging channels like Connected TV (CTV) and digital audio, transforming a potential crisis into a significant growth opportunity. The lesson for everyone else? Adapt or be left behind. The digital tide waits for no one.

What is Connected TV (CTV) and how does it differ from linear TV?

Connected TV (CTV) refers to televisions that can connect to the internet and stream video content, typically through apps like Netflix, Hulu, or YouTube. Unlike traditional linear TV, which broadcasts scheduled programming over airwaves or cable, CTV delivers content on-demand and allows for digital-level targeting, measurement, and interactive ad formats.

Why is digital audio becoming so important for marketers?

Digital audio, encompassing podcasts, streaming music, and online radio, offers marketers access to highly engaged audiences during activities where visual media is less effective (e.g., commuting, exercising). It provides unique opportunities for brand storytelling and can build significant brand recall, often at a lower cost per impression than video, especially when integrated with first-party data for precise targeting.

What are the key challenges in advertising on CTV and digital audio?

Key challenges include audience fragmentation across numerous platforms, ensuring consistent creative messaging, developing effective attribution models that span multiple channels, and managing ad fraud. Additionally, the need for high-quality, platform-specific creative content is paramount, as repurposed traditional ads often underperform.

How can small to medium-sized businesses (SMBs) effectively enter the CTV advertising space?

SMBs can enter the CTV space by starting with programmatic platforms that offer lower minimum spends and robust targeting (e.g., through Google Display & Video 360 or The Trade Desk). Focus on highly targeted audience segments, develop concise and compelling 15-30 second video ads, and closely monitor performance using a holistic attribution model. Partnering with a specialized agency can also provide necessary expertise.

What kind of creative content performs best on CTV?

Creative content that performs best on CTV is typically high-quality, narrative-driven, and designed for a lean-back viewing experience. Ads that tell a story, showcase product benefits in a visually engaging way, and are tailored to the specific context of the streaming content tend to outperform repurposed linear TV spots. Shorter formats (15-30 seconds) with a clear call to action are often most effective.

Donna Evans

Digital Marketing Strategist MBA, Digital Marketing; Google Ads Certified; Meta Blueprint Certified

Donna Evans is a distinguished Digital Marketing Strategist with over 14 years of experience, specializing in performance marketing and conversion rate optimization (CRO). As the former Head of Growth at Zenith Digital Solutions and a consultant for Fortune 500 companies, Donna has consistently driven measurable results. His expertise lies in crafting data-driven campaigns that maximize ROI. Donna is also the author of the influential industry whitepaper, "The Future of Intent-Based Advertising."