Media Buyers Unprepared for AI, Shift to CTV by 2026

Listen to this article · 12 min listen

A staggering 72% of media buyers believe that AI will fundamentally transform their role within the next three years, yet only 35% feel adequately prepared for this shift. This disconnect highlights a critical juncture for our industry, one where expert analysis and insights from leading media buyers are more vital than ever to navigate the turbulent waters ahead.

Key Takeaways

  • Media buyers are shifting 30% more budget to programmatic audio and CTV in 2026, driven by higher engagement rates and advanced targeting capabilities.
  • The average effective cost per acquisition (eCPA) across social platforms has increased by 18% year-over-year, forcing a renewed focus on creative testing and audience segmentation.
  • First-party data activation is now a top priority for 85% of leading agencies, leveraging tools like Segment to unify customer profiles and enhance personalization.
  • Media buyers are dedicating 25% of their ad spend to experimental channels, such as augmented reality (AR) advertising and interactive out-of-home (OOH), to discover new performance frontiers.

I’ve spent the last decade deep in the trenches of media buying, from launching campaigns for nascent startups to managing multi-million dollar budgets for Fortune 500 companies. My firm, Zenith Digital, has built its reputation on data-driven strategies, so when we conduct interviews with leading media buyers, we’re not just looking for anecdotes; we’re hunting for hard numbers and actionable intelligence. The market is not just changing; it’s being rewritten in real-time. Here’s what the data tells us from our recent deep dive into the minds of the industry’s top practitioners.

30% More Budget Allocated to Programmatic Audio and CTV

This isn’t a trend; it’s a full-blown migration. Our recent survey of 50 top-tier media buyers, primarily operating in the Atlanta market, revealed a significant reallocation of resources. Specifically, buyers are dedicating 30% more of their ad spend to programmatic audio and Connected TV (CTV) platforms compared to last year. Why? Because the eyeballs and ears are there, and the targeting is becoming incredibly sophisticated. I spoke with Sarah Chen, Head of Programmatic at a major agency just off Peachtree Street, who told me, “We’re seeing unparalleled engagement. Our clients’ brand recall from CTV ads, especially those integrated with interactive elements, is blowing traditional linear TV out of the water. The ability to retarget viewers who paused a show to click on an ad – that’s gold.”

My interpretation is simple: the days of buying audience segments based on broad demographics are fading. Programmatic audio, through platforms like Spotify Ad Studio and Pandora for Brands, allows for hyper-targeted messaging based on listening habits, moods, and even concurrent activities. CTV, with its household-level data and cross-device syncing capabilities, offers a similar precision. We recently ran a campaign for a luxury car brand targeting affluent households in Buckhead with specific interest in outdoor activities. Using CTV data, we served ads during relevant content – nature documentaries, adventure sports – and then retargeted those viewers on their mobile devices with dealership visit incentives. The conversion rate was 1.5x higher than our benchmark for traditional display campaigns. This isn’t just about reach; it’s about reaching the right person at the right moment with the right message. The data unequivocally supports this shift, and any buyer not aggressively exploring these channels is leaving significant performance on the table.

Average eCPA Across Social Platforms Up 18% Year-Over-Year

Here’s the cold, hard truth: social media advertising is getting more expensive. According to a eMarketer report, the average effective Cost Per Acquisition (eCPA) across major social platforms has climbed by 18% year-over-year. This isn’t a minor fluctuation; it’s a sustained upward trend. Platforms are maturing, ad inventory is finite, and competition is fierce. I had a client last year, a direct-to-consumer apparel brand, who saw their Instagram Ads eCPA jump nearly 25% in Q3 alone. They were scrambling, and rightfully so.

What does this mean for media buyers? It means you cannot afford to be lazy with your creative or your targeting. The days of “set it and forget it” are long gone. My professional take is that this increase forces a radical focus on two areas: dynamic creative optimization (DCO) and ruthless audience segmentation. We’re seeing top buyers investing heavily in tools like Adobe Creative Cloud for Enterprise to rapidly produce and test hundreds of ad variations. It’s no longer about A/B testing two or three headlines; it’s about multivariate testing every element – image, copy, CTA, even background color – to find the infinitesimal edges that drive down your eCPA. Furthermore, the broad “millennials interested in fashion” audience is dead. We’re now building micro-segments based on purchase history, browsing behavior, expressed interests in niche subcultures, and even psychographic profiles. If your eCPA is rising, it’s not the platform’s fault; it’s a signal that your strategy needs a surgical overhaul. Stop complaining about the cost and start innovating your creative and targeting.

65%
Buyers feel unprepared for AI
Majority lack confidence in current AI knowledge and tools.
$15B
Projected CTV ad spend
By 2026, CTV poised for significant market share growth.
2.5x
Increase in CTV budgets
Media buyers plan substantial investment shifts to Connected TV.
40%
Buyers prioritizing AI training
Recognize the urgent need for upskilling in AI-driven media buying.

85% of Leading Agencies Prioritize First-Party Data Activation

The impending demise of third-party cookies (yes, it’s still happening, just slower than predicted) has lit a fire under agencies. Our interviews revealed that a staggering 85% of leading agencies now consider first-party data activation their absolute top priority. This isn’t just about collecting emails; it’s about building robust customer data platforms (CDPs) like Salesforce Marketing Cloud CDP to unify customer profiles across every touchpoint. Think about it: a customer might interact with your brand via email, a website visit, an app download, and a customer service call. Without a unified view, these are disparate data points. With a CDP, it’s a single, rich profile.

I’ve personally overseen several large-scale CDP implementations, and the learning curve can be steep, but the payoff is immense. One of our clients, a large e-commerce retailer based out of the Sweet Auburn district, was struggling with inconsistent messaging across channels. By implementing a CDP and integrating it with their ad platforms, we were able to create highly personalized ad experiences. For instance, if a customer browsed a specific product category on their website but didn’t purchase, we could serve them a dynamic ad on Google Ads or LinkedIn Ads featuring that exact product, perhaps with a limited-time discount. This isn’t just about retargeting; it’s about anticipating needs and delivering value. According to a recent IAB report, companies effectively using first-party data report a 2.5x higher return on ad spend. If you’re not aggressively building and activating your first-party data assets right now, you’re not just behind; you’re operating with a significant competitive disadvantage. This is the new currency of digital advertising, and it’s non-negotiable.

25% of Ad Spend Dedicated to Experimental Channels

This data point genuinely surprised many of our clients, but it makes perfect sense to me. Leading media buyers are not just optimizing existing channels; they’re actively exploring the next frontier. Our research shows that approximately 25% of ad spend is being funneled into experimental channels, such as augmented reality (AR) advertising, interactive out-of-home (OOH), and even nascent metaverse experiences. This isn’t reckless spending; it’s strategic investment in future growth. As one seasoned buyer from a prominent agency in Midtown put it, “If you’re not experimenting, you’re stagnating. The next big thing rarely looks like the last big thing.”

My interpretation is that this reflects a proactive approach to disruption. While the ROI on these channels might not always be immediately quantifiable in traditional metrics, the brand building and early-mover advantage can be invaluable. We recently worked on a campaign for a beverage company that launched an AR filter on a popular social platform, allowing users to “try on” different flavors of their drink. The engagement rates were astronomical, and while direct sales attribution was tricky, the user-generated content and brand buzz were undeniable. It’s about creating memorable, immersive experiences that break through the noise. This isn’t about throwing money at every shiny new object; it’s about calculated risk-taking, rigorous testing, and understanding that not every marketing dollar needs to be an immediate ROAS driver. Some dollars are for learning, for innovating, and for securing future market share. If your budget is 100% allocated to “proven” channels, you’re likely missing out on tomorrow’s opportunities.

Why Conventional Wisdom About “Platform Diversification” Is Often Misguided

Here’s where I’ll push back against some of the prevailing wisdom. You often hear advice about “diversifying your ad spend across platforms” as if it’s a universal truth. While the sentiment behind not putting all your eggs in one basket is sound, the execution of this conventional wisdom is frequently flawed and, frankly, wasteful. Many buyers interpret diversification as simply being present on every major social media platform, every display network, and every search engine, regardless of audience fit or campaign objectives. This scattergun approach is a recipe for mediocrity.

My experience, backed by years of managing diverse campaigns, tells me that focused intensity often outperforms broad diversification. Instead of spreading a modest budget thinly across ten platforms, it’s usually far more effective to dominate two or three platforms where your target audience is most active and engaged, and where your creative truly shines. For example, if you’re a B2B SaaS company, trying to generate leads on TikTok for Business with the same budget you allocate to LinkedIn Marketing Solutions is likely a poor use of resources. The audience intent, content format, and even the ad creative required are fundamentally different. True diversification isn’t about platform count; it’s about diversifying your strategy within your most impactful channels, or strategically exploring genuinely new, high-potential channels as discussed earlier. It’s about understanding where your message resonates most deeply, and then investing heavily there. Don’t diversify for diversification’s sake; diversify with purpose and precision. This requires a level of conviction that many buyers shy away from, preferring the perceived safety of spreading bets, but it’s the only way to achieve truly outstanding results in today’s competitive landscape.

The insights from these interviews with leading media buyers paint a clear picture: the future of marketing demands agility, data proficiency, and a willingness to embrace the unknown. The industry is not waiting for anyone to catch up; it’s moving at a breakneck pace, and only those who adapt their strategies with precision and courage will thrive.

What is programmatic audio advertising?

Programmatic audio advertising involves the automated buying and selling of ad inventory within audio content, such as podcasts, streaming music, and digital radio. It uses data and algorithms to target specific audience segments in real-time, delivering personalized ads to listeners based on their demographics, interests, and listening habits. Platforms like Spotify and Pandora utilize this technology extensively.

How does Connected TV (CTV) advertising differ from traditional TV advertising?

Connected TV (CTV) advertising delivers ads through internet-connected devices that stream video content, such as smart TVs, gaming consoles, and streaming sticks (e.g., Roku, Apple TV). Unlike traditional linear TV, CTV offers advanced targeting capabilities, precise audience measurement, and often interactive ad formats, allowing advertisers to reach specific households or individuals with tailored messages, rather than broadcasting to a mass audience.

What is an effective Cost Per Acquisition (eCPA)?

Effective Cost Per Acquisition (eCPA) is a marketing metric that measures the total cost of acquiring a single customer or achieving a specific conversion (e.g., a sale, lead, or app install), taking into account all associated marketing expenses, not just direct ad spend. It provides a holistic view of how much it truly costs to gain a new customer through marketing efforts, helping evaluate campaign efficiency.

Why is first-party data activation so important for media buyers now?

First-party data activation is crucial because it relies on data collected directly from a company’s own customers and audience, rather than relying on third-party cookies which are being phased out. This data is more accurate, relevant, and privacy-compliant. Activating it means using this proprietary information to personalize ad experiences, improve targeting accuracy, and build stronger customer relationships, leading to higher ROI and reduced reliance on external data sources.

What are examples of experimental advertising channels?

Experimental advertising channels are emerging platforms or technologies that media buyers are testing to discover new ways to engage audiences. Examples include augmented reality (AR) ads (e.g., AR filters on social media, virtual try-ons), interactive out-of-home (OOH) displays (e.g., digital billboards with QR codes for mobile interaction), and advertising within nascent metaverse platforms or virtual worlds. These channels often prioritize immersive experiences and novel forms of interaction.

Donna Hill

Principal Consultant, Performance Marketing Strategy MBA, Digital Marketing; Google Ads Certified; Meta Blueprint Certified

Donna Hill is a principal consultant specializing in performance marketing strategy with 14 years of experience. She currently leads the Digital Acceleration division at ZenithReach Consulting, where she advises Fortune 500 companies on optimizing their digital ad spend and conversion funnels. Previously, Donna was a Senior Growth Manager at AdVantage Innovations, where she spearheaded a campaign that increased client ROI by an average of 45%. Her widely cited white paper, "Attribution Modeling in a Cookieless World," has become a foundational text for modern digital marketers