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Published October 11, 2026

CTV Advertising: $38 Billion Spend and a Budget Plan

CTV and Streaming Advertising in 2026: What Actually Works
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Connected TV (CTV) advertising is paid video advertising on internet-connected television, and it combines the reach of television with digital targeting and measurement. eMarketer projects US CTV upfront ad spending at $17.73 billion in 2026, which exceeds primetime linear TV upfront spending of $16.98 billion for the first time, and puts total US CTV ad spending at about $38 billion for the year.

Last updated October 21, 2026. Dated facts below carry their sources.

What are the key takeaways on CTV advertising?

CTV advertising has reached the point where upfront commitments exceed primetime linear TV, so brands should plan it as a primary video buy. Forecasts differ by definition, so a plan should state which source and which definition it uses.

  • eMarketer counts a broad CTV universe and lands near $38 billion for 2026, while the IAB's narrower definition lands lower.
  • Upfront buyers are prioritizing addressability and performance, not only reach.
  • Split the budget between awareness placements and performance placements bought programmatically.
  • Ask each platform for comparable measurement before committing budget.
Quick definition: what is an upfront?

An upfront is an annual negotiation in which advertisers commit budget in advance to buy television or streaming ad inventory for the coming season.

What does the data say about CTV spend?

The data says CTV spending has crossed linear TV in the upfront market, and forecasts vary with how CTV is defined. The figures below come from eMarketer unless noted.

Data pointFigureSource
US CTV upfront ad spending, 2026$17.73 billioneMarketer, Digital Video Forecast and Trends Q2 2026
US primetime linear TV upfront ad spending, 2026$16.98 billion, so CTV exceeds it for the first timeSame eMarketer report
US CTV ad spending, 2026About $38 billion ($37.95 billion), up roughly 14 to 15% on 2025eMarketer, as summarized by AdWave
Growth outlookAbout 14% in 2026, cooling to about 11% a year through 2029, when spend reaches $51 billioneMarketer, as summarized by AdWave
US CTV ad spending under the IAB's narrower definition$20.7 billionIAB Video Ad Spend Report, as summarized by AdWave

What is CTV advertising?

CTV advertising is digital advertising delivered on internet-connected television devices, including in-stream video ads on platforms such as Hulu, Roku and YouTube and display ads on home screens. eMarketer's definition excludes network-sold inventory from traditional linear TV and addressable TV.

The key difference from linear TV is that buyers can choose households or audiences, not only time slots, and can read results from digital data.

How much are advertisers spending on CTV in 2026?

US advertisers are spending about $38 billion on CTV in 2026, according to eMarketer, with growth of roughly 14% before cooling to about 11% a year through 2029. The IAB reports a lower figure, $20.7 billion, because it defines CTV more narrowly.

The gap between the two numbers is a definition gap, not a disagreement about direction. State the source and definition whenever a CTV figure appears in a plan.

Has CTV overtaken linear TV advertising?

CTV has overtaken primetime linear TV in the 2026 US upfront market. eMarketer's Digital Video Forecast and Trends Q2 2026 reports CTV upfront spending of $17.73 billion against $16.98 billion for primetime linear TV, as buyers look beyond reach to performance outcomes.

The same report notes that ad prices for scarce live content will rise, so premium live sports and events still carry high prices. Linear TV remains relevant for scale and impression volume, as industry coverage of the report notes.

Why is CTV spend still small relative to viewing time?

CTV spend lags viewing because budgets move more slowly than audience behavior, and measurement and buying standards took years to settle across platforms. Each platform used its own signals and reporting, which made some advertisers hesitant to commit at the scale viewership justified.

That gap is the opportunity in the channel. Brands that set up buying and measurement early can reach audiences who already watch on connected TV.

How do you measure CTV advertising?

You measure CTV advertising by choosing outcomes first, then asking each platform to report them in comparable terms. Attention, reach and household-level results matter more on CTV than raw impressions, since viewers often use a second device while an ad runs.

MeasureWhat it shows
Reach and frequency by householdHow many distinct homes saw the ad and how often
Completed viewsWhether the ad played through
AttentionWhether viewers were actually looking at the screen
Site visits and conversions after exposureWhether exposed households took the target action
Branded search liftWhether exposure raises demand for the brand name

Compare placements on the same measures across platforms, so budget can move to what performs. See measuring PR effectiveness for how to set baselines, and the media planning and buying practice for how buys are structured.

How should a brand set its CTV budget?

A brand should set its CTV budget starting from the upfront crossover, not last year's linear TV line item. Because CTV upfronts now exceed primetime linear upfronts in dollar terms, treat CTV as a primary video buy and treat remaining linear spend as a supplement for audiences CTV does not yet reach.

Budget linePurposeHow it is bought
Awareness placementsReach on premium ad-supported tiers and live contentUpfront or direct deals
Performance placementsConversions from targeted householdsProgrammatic buying
Linear supplementAudiences CTV does not yet reachRemaining linear commitments
Measurement and testingComparable results across platformsA reserved share of the plan

eMarketer's forecast shows growth cooling from about 14% in 2026 to about 11% a year through 2029, which is a reason to build buying relationships before the channel matures. For how paid and earned work together, see PR vs marketing vs advertising.

Frequently asked questions

What is CTV advertising?

CTV advertising is paid video and display advertising on internet-connected television devices, with digital targeting and measurement.

How much is spent on CTV advertising?

eMarketer puts US CTV ad spending at about $38 billion in 2026, while the IAB's narrower definition gives $20.7 billion.

Has CTV overtaken linear TV?

In the 2026 US upfronts, yes. eMarketer reports CTV upfront spending of $17.73 billion against $16.98 billion for primetime linear TV.

What is the difference between CTV and OTT?

CTV refers to the television device that delivers internet video, and over-the-top (OTT) refers to content delivered over the internet instead of through cable or broadcast. The terms overlap, so confirm which one a vendor means.

How is CTV advertising targeted?

Buyers can target specific households or audience segments, not only time slots, which is the main change from linear TV.

How should a brand measure CTV advertising?

Use reach and frequency by household, completed views, attention, post-exposure site visits and conversions, and branded search lift, compared across platforms.

What should a brand do first?

A brand should choose the outcome it wants from CTV, state which forecast definition it is using, and split its plan between awareness and performance placements. Then ask every platform for comparable measurement before committing budget.

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5W Editorial Team

The 5W Editorial Team publishes the research, analysis and practical guides that come out of 5W's work in public relations, creative, GEO and AI visibility. Our writers sit inside the campaigns and studies we cover, and every article is reviewed by a human editor before publication. When a piece draws on 5W research, it links back to the study so readers can see the source.

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