What's Happening?
The latest FreeWheel Video Marketplace Report highlights significant growth in Connected TV (CTV) ad views, with a year-over-year increase of 8% in the US and 31% in Europe. This surge has positioned CTV as a primary channel for premium video ad consumption,
driving the adoption of programmatic advertising. In the first half of 2025, programmatic ad views increased by 29% in the US and 44% in Europe, indicating a growing embrace of automated ad delivery. The report notes that programmatic now accounts for 30% of ad delivery in the US, with behavioral targeting being the predominant strategy. The rise in programmatic advertising is attracting new advertisers, with a 14% increase in unique advertisers leveraging this method compared to the previous year.
Why It's Important?
The expansion of programmatic advertising on CTV platforms is reshaping the advertising landscape, offering publishers enhanced monetization opportunities and advertisers more efficient targeting strategies. This shift is crucial for the US advertising industry, as it allows for more precise audience engagement and reduces ad fatigue through improved ad frequency and relevancy. The growth in programmatic adoption also signifies a broader trend towards automation in advertising, which can lead to increased efficiency and effectiveness in reaching target audiences. As more advertisers enter the programmatic space, the competition for ad placements intensifies, potentially driving innovation and improvements in ad delivery technologies.
What's Next?
The continued growth of programmatic advertising on CTV platforms is likely to lead to further investments in technology and monetization strategies by publishers. As the market evolves, advertisers may increasingly focus on refining their targeting strategies to maximize engagement and return on investment. The report suggests that there is ample opportunity to extend automated delivery across Video on Demand (VOD) and live inventory, which could diversify strategies and capture new advertiser spend. This evolution may also enhance the viewer experience by reducing ad fatigue and creating more engaging streaming environments.
Beyond the Headlines
The rise of programmatic advertising on CTV platforms may have broader implications for the advertising industry, including ethical considerations around data privacy and targeting practices. As behavioral targeting becomes more prevalent, advertisers and publishers must navigate the balance between effective audience engagement and respecting consumer privacy. Additionally, the shift towards automated ad delivery could influence the future of media consumption, as viewers may experience more personalized and relevant advertising content.
