• by Wayne Friedman , Yesterday

Connected TV (CTV) ad spending is projected to grow 11% to $29.3 billion this year -- a slight drop from last year’s 12% gain -- according to a new IAB report.

Targeting and content quality will show continued growth to 49% and 46%, respectively -- up from 39% and 43% the year before.

These estimates are part of a report that included a survey of 360 media executives conducted in February and March this year by Advertiser Perceptions, and research data from Guideline.

The report projects that social video will increase 13% to $31.9 billion, with online video rising 10% to $20.7 billion.

Looking at whether CTV and media budgets will climb or decline, the report cites cost (at 47%) and audience delivery (at 47%) as the main factors -- up from 41% for both in 2025.

Fraud is still a major concern, especially when deals are made in open programmatic CTV exchanges, at 56%. The second-biggest concern is unverified publisher or source of content, at 48%.

The top tier “live” content genres -- in terms of consideration of video buyers' intent -- are breaking news (69%), sporting events (65%) and award shows (64%).

Viewer attention is the main value driver when it comes to live TV and streaming content (45%) with business outcomes next at (38%), the report finds.

In terms of advertiser categories, 50% of respondents say pricing for live content for automotive and financial services CTV deals “is not justified relative to their return.”

This is more challenging for the longer purchasing journeys -- complex decisions that customers need to make -- for those products and services.