Connected TV (CTV) advertising is poised for a transformative year in 2025. With falling CPMs (cost per thousand impressions), improved targeting, and enhanced measurement capabilities, it’s an ideal time for brands to rethink their approach. As more viewers migrate to ad-supported streaming platforms, savvy marketers have an unprecedented opportunity to connect with audiences in meaningful ways.
Why CTV Is the Hot Topic for 2025
Amazon Prime Video’s introduction of its ad-supported tier in 2024 has created a ripple effect across the industry. The influx of ad inventory has driven down costs, with most platforms offering CPMs under $30 by mid-2025—except Netflix and Max, which maintain premium pricing.
Simultaneously, CTV ad spend is expected to reach $33.35 billion in 2025. As more users opt for ad-supported plans to save money, brands can reach a growing, engaged audience at a lower cost compared to rising social media CPMs.
Key Takeaway: Lower ad costs mean brands can allocate budgets more strategically, doubling down on CTV as a high-value channel.
Source: EMARKTER
Trend #1: CTV Viewership Is Growing Faster Than Ad Spend
Time spent on CTV platforms is growing rapidly. By 2026, U.S. adults will spend 20% of their daily media time on streaming platforms, up from just 11.5% in 2020. However, CTV will still account for only 8% of total ad spend.
This imbalance presents an opportunity for brands to maximize their investments while competition in the space is still manageable.
What This Means for You:
If you’ve been hesitant to add CTV to your media mix, now is the time. The growing audience and relatively low costs make it an attractive channel for both performance and brand-building campaigns.
Trend #2: Smarter Targeting Fuels Better Results
One of CTV’s greatest strengths is its ability to deliver precision targeting, which 65% of marketers now consider a performance driver. By combining robust audience data with partnerships like retail media networks, advertisers can reach specific audiences and measure their impact in real-time.
What This Means for You:
Personalized messaging is no longer optional—it’s a necessity. With better targeting tools, brands can deliver ads tailored to individual preferences, increasing engagement and driving meaningful results.
The Role of The Trade Desk
At Mason, we leverage The Trade Desk to power smarter, more efficient CTV campaigns for our clients. This platform allows us to manage programmatic ad buys across streaming services with unparalleled precision. From audience segmentation to real-time bidding and optimization, The Trade Desk offers the tools brands need to excel in a competitive market.
How We Work with Clients:
Our agency provides end-to-end campaign management on The Trade Desk, supported by a simple pricing model—a 4% monthly management fee based on assets and budgets under management. This approach ensures transparency and accountability while delivering measurable results.
What This Means for You:
The Trade Desk’s advanced capabilities empower brands to:
- Target more effectively by reaching specific demographics and geographies.
- Optimize campaigns in real-time to improve ROI.
- Measure success with detailed performance analytics, ensuring every dollar works harder.
Trend #3: Lower CPMs Mean Bigger Opportunities
The combination of falling CPMs and increased ad inventory creates the perfect environment for brands to experiment with their strategies. Whether testing new creative, refining messaging, or exploring untapped audiences, 2025 is a low-risk, high-reward year for CTV advertising.
What This Means for You:
Seize the opportunity to get bold with your campaigns. Test multiple ad variations, leverage AI-powered tools for optimization, and don’t shy away from creative risks. With CPMs at historic lows, now is the time to push boundaries.
How to Build a Winning CTV Strategy in 2025
Here’s a quick guide to make the most of your CTV efforts this year:
- Reallocate Budgets: Take advantage of lower CTV CPMs to expand your reach without increasing costs. Offset the rising expenses of social ads by shifting funds strategically.
- Prioritize Creative Excellence: Use CTV’s targeting tools to develop personalized ads that resonate with specific audience segments. Test and iterate to maximize engagement. Our creative team will work with you to develop the necessary creative to maximize your campaigns/flight.
- Leverage The Trade Desk: Partner with experts who can optimize your programmatic CTV buys, ensuring your campaigns are data-driven and performance-focused.
- Track and Measure Success: Take advantage of CTV’s advanced measurement capabilities to analyze results and refine your strategy for continuous improvement.
Looking Ahead
As CTV continues to evolve, brands that embrace its opportunities will be positioned for growth in 2025 and beyond. With falling costs, smarter tools, and growing audiences, there’s no better time to invest in this dynamic channel.
Ready to explore what CTV can do for your business? Let’s build a strategy that delivers measurable success in the year ahead. Book a call with our strategy team.