By Tony Marlow, CMO at LG Ad Solutions
As leaders across digital media gathered in New York City over the past month, one question was top of mind: how can we continue to evolve amid a backdrop of uncertainty? And, while some industry analysts have forecast a pullback in ad spend, speakers at the 2025 Upfronts and NewFronts struck a far more optimistic tone than the headlines might suggest.
CTV, in particular, is enjoying its moment in the sun. Much of the buzz from this year’s event focused around the live sports and entertainment market, with streamers edging for shares in this lucrative, fast-moving space. Meanwhile, an increasingly diverse range of FAST channels are helping brands to culturally align with new and growing audiences.
The hype is reflected by numbers, too. Total CTV ad spend is set to reach more than $46 billion by 2028, with a projected 43% larger budget than online video in this year alone. From star power to spending prowess, and the ability to serve beyond the realms of linear TV, the CTV-first era has well and truly arrived.
The rise of stay-in audiences
In fact, America’s current caution around spending (McKinsey) is part of the reason why CTV’s star is in ascendance. A survey conducted by LG Ad Solutions last month found that 59% of Americans will stay at home more and increase their video streaming services – if out-of-home entertainment options (for example, vacations or restaurant meals) become more expensive.
Almost 70% of study respondents also named price as their number one consideration in keeping or canceling a service, while the same percentage found discount-related CTV ad features helpful. Amid the backdrop of possible price hikes, an additional two-thirds (68%) of consumers are planning to increase their use of free AVOD platforms; or have done so already. And 66% intend to stream more live events at home instead of buying in-person tickets, in order to save money.
With savvy viewers staying in and spending more time on home screens, FAST channels are likewise booming. This is a time of unparalleled creativity for content creators, who can use CTV to meet consumers in an immersive and scalable home environment. From cult series to live music festivals and sellout comedy gigs, streamers are ideally placed to offer a full echelon of big-ticket and niche entertainment options.
This, in turn, enables brands to connect with viewers on a deeper, more immersive level. Along with a rise in innovative formats, advertisers can use the shift to at-home viewing to reach fans where they’re most engaged. This includes when they’re enjoying a front-row seat to their favorite events, creating a valuable opening for real-time alignment.
A search for deeper connection
Another insight from conversations at this season’s newfronts is that ad buyers are seeking out fewer, yet more meaningful, partnerships. This again comes down to a challenging economic climate, coupled with a spike in online noise. In an increasingly competitive digital sphere where every attention signal counts, brands are using their slimmed-down budgets carefully to stand out.
Once more, this plays to the strengths of ad-supported streaming. As the CTV landscape evolves, so too does the tech powering everything from localised targeting and measurement tools to real-time campaign optimization. The upshot is that marketers can draw on CTV to use their ad dollars more flexibly – even adapting their strategy partway through an activation based on live and customised data insights.
The audience is there and ready. And the inventory to choose from has never been more varied or compelling. The CTV Home Screen for example has become more than just a powerful content gateway for users, it’s also an unrivalled opportunity for brands and a platform for developing new and more creative types of TV advertising. As the first screen that users see when they turn on their smart TVs, the Home Screen provides a canvas for advertising that can capture attention and engage audiences in a way that just isn’t possible in a linear TV setting.
TV as an experience
As highlighted in LG Ad Solutions’ newfronts presentation this season, we’re seeing the emergence of TV not just for viewing, but as an experience in and of itself. In this fresh age of CTV innovation, brands that distinguish themselves will be able to walk the line between content and commerce, entertainment and engagement. This increasingly nuanced crossover will decide who can bring together content, ads and audiences – via campaigns that foster deep-rooted brand connection.
As well as measurement tech, this elevated CTV experience is helped along by a profusion of creative products that showcase brand content in unique and spectacular formats. In LG Ad Solutions’ case, this includes 3D home screen ads for content discovery, a new cloud gaming solution and shoppable units featuring QR codes and add-to-cart functions. We’re even bringing some cross-platform wow power into the equation, with Spaceback AI tech used to transform content on TikTok and Instagram Stories into CTV ad units.
The ad market may be facing economic challenges, but connected TV is bucking the trend. Advertisers here can forge a path of their own, delivering rich, at-home and interactive experiences to audiences hungry for more.
