LG Ads, iSpot Uncover Best Practices Around CTV Ad Spend

Connected TV (CTV) is no longer the future—it’s here and for the foreseeable future, here to stay. With nearly half of all TV viewing now occurring on CTVs, CTV ad spend is expected to grow 10% annually through 2027, outpacing Linear TV.  Yet despite this shift, a majority of TV ad impressions still go to Linear TV, according to eMarketer.

iSpot and LG Ad Solutions recently collaborated together on a groundbreaking study, “The Efficiency Curve,” aimed to help the broader media marketplace understand the optimal balance between CTV and Linear TV investments. The findings indicate many brands may be over-invested in Linear TV, leaving the opportunity for CTV to drive stronger outcomes for advertisers focused on results.

• By reallocating just 6-7% of impressions from Linear TV to CTV, the study found brands can achieve notably stronger performance across KPIs for advertisers, resulting in more balanced frequency, broader reach, and significantly higher conversion rates.
• Brands need to find the maximum efficiency point where CTV and Linear TV work in concert to drive optimal performance while minimizing ad exposure wastage. 
• Top-performing brands have embraced this shift, allocating 23.7% of their impressions to CTV, compared to 17.4% for other brands. 

For more findings from LG Ad Solutions and iSpot, download the full report here.