Why Performance-Driven Connected TV Advertising Will Dominate in 2025
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As we head into 2025, Connected TV (CTV) is emerging as a game-changing channel for advertisers, blending performance-driven strategies with unmatched targeting and attribution capabilities. With U.S CTV ad spend projected to hit $32.57 billion, CTV is no longer a luxury—it’s a necessity for agencies looking to deliver full-funnel results.
This blog gives you a sneak peek at trend #1 from our 2025 Media Execution Trends e-book, where we explore the biggest shifts transforming media strategies in the coming year. Want to uncover all three trends? Check out the full e-book for deeper insights and actionable takeaways to future-proof your campaigns.
CTV’s Rapid Growth: By the Numbers
In 2025, U.S. CTV ad spending is projected to reach $32.57 billion (eMarketer, 2024), representing nearly 10% of the total digital ad spend. This rapid growth highlights the shift away from traditional linear TV as more advertisers recognize the unparalleled benefits of CTV campaigns. As premium inventory becomes more accessible, agencies can now incorporate CTV into their media plans to engage consumers across every stage of the funnel—from awareness to conversion.
Why CTV Is Becoming Essential
Several advancements are driving CTV’s accessibility and effectiveness, including:
Improved Targeting: Enhanced data capabilities enable agencies to pinpoint their audience more precisely.
Interactive Engagement Features: Tools like QR codes and clickable overlays create opportunities for real-time audience interaction.
Advanced Attribution Tools: These tools empower advertisers to measure Return on Ad Spend (ROAS) with greater accuracy, ensuring campaigns deliver tangible business outcomes.
As one of our experts notes, “Overall, 2025 is set to be the year of always-on CTV campaigns as this channel’s interactivity and attribution capabilities advance. For media buyers, this evolution brings exciting opportunities—and complexities—that demand a keen understanding of CTV’s full-funnel potential.”
The Shift Toward Interactivity
In 2025, interactive features on CTV are set to become more mainstream, allowing advertisers to deepen engagement and drive action. For example, embedded engagement features like QR codes can guide viewers from awareness to purchase without leaving their screens. This capability makes CTV a uniquely versatile channel for achieving both upper-funnel branding goals and lower-funnel performance objectives.
How Pathlabs Supports Agencies
At Pathlabs, we simplify the complex process of CTV attribution, real-time optimization, and interactive features. By equipping agencies with cutting-edge attribution tools and actionable audience insights, we empower them to adopt always-on, full-funnel CTV campaign strategies.
With access to tools like TV Intelligence, part of the MiQ suite, Pathlabs provides a holistic view across linear TV, streaming, and YouTube, powered by the industry’s most comprehensive data footprint. This means agencies can confidently offer clients a balanced media plan, one that maximizes their media dollars while retaining the advantages of both linear and CTV platforms.
The Path Forward
The evolution of CTV isn’t just about technology—it’s about strategy. Agencies must rethink their media mix to integrate CTV campaigns that are always-on and performance-driven. With the ability to deliver real-time insights and engage intent-driven audiences, CTV is no longer just an experiment; it’s a vital part of any comprehensive media strategy.
Ready to explore how CTV can transform your media strategy in 2025? Download our e-book on 2025 media execution trends to gain deeper insights into this and other trends shaping the future of advertising.