CTV Advertising Can Go Bigger and Better with Shoppable Ads in 2025

Imagine being able to buy Gustavo Fring’s Los Pollos Hermanos chicken by scanning a QR code straight from your TV screen while watching your favorite show. Sounds futuristic, right? However, this could become a reality with the rise of CTV advertising and shoppable ads. 

Connected TV (CTV) has emerged as a powerhouse, following Linear TV and becoming an appeal to both advertisers and viewers. The success of CTV advertising isn’t just about following trends; it’s fueled by the growing number of cord-cutters switching to FAST (Free, Ad-Supported TV), SVOD (Subscription Video-On-Demand), and BVOD (Broadcaster Video-On-Demand). 

Shoppable ads are the newest catalyst in CTV advertising, redefining how ads drive engagement and revenue. By integrating interactive elements that allow viewers to shop directly from their screens, these ads can push ad spending, influence purchasing decisions, and boost market value. 

The dynamic between CTV advertising and shoppable ads revolutionizes how brands approach their media and advertising strategies. Let’s dive into this synergy to understand how brands can maximize impact and stay ahead in the competitive advertising landscape. 

The exploding growth of CTV advertising in the era of interconnectivity  

CTV advertising is on a rocket-fueled journey, climbing steadily in ad spending, revenue, and viewership. In today’s digital age, where the internet is as essential as morning coffee, it’s no shocker that linear TV is losing some of its shine with advertisers. But don’t count it out just yet. 

According to eMarketer, linear TV still dominates 87 percent of TV ad time, while CTV trails at just 13%. Regarding ad spending, linear holds 63 percent of the market. It’s clear that linear TV’s old-school charm isn’t fading into the sunset overnight—its widespread penetration around the globe keeps it a heavyweight. 

There is one more reason why CTV ad time is not skyrocketing. Viewers are willing to pay a premium for ad-free bliss on platforms like Netflix and Prime Video. Why sit through ads when you’ve paid for uninterrupted binging? 

Still, streaming services are making serious waves. Nielsen reports that 42 percent of TV/streaming viewing comes from streaming platforms alone, which shows how much digital platforms are flexing their muscles in the viewing arena. 

The rationale behind this is easy access to streaming. With internet access practically everywhere, signing up for a FAST service like Tubi takes less time than making instant noodles. 

The future of CTV advertising is not just about catching up with linear TV; it is about integrating and offering more than what linear TV has been offering. Does it mean an interactive and seamless ad experience that can include direct purchases, too? 

Maintain recall value with interactive, seamless, and engaging shoppable ads in CTV advertising 

The 2024 LG Ad Solution Shoppable TV Report brought exciting news: 81 percent of connected TV (CTV) users are influenced by ads, and 47 percent of them make purchases within three months of seeing those ads. Talk about a lasting impression. 

It’s not just about nudging viewers to recognize a brand or product; it’s about sparking a desire to shop directly through CTV ads. A striking 51 percent of users expressed interest in purchasing products straight from shoppable TV ads—cementing this approach as the future of interactive advertising. 

The report highlighted key tools driving this trend: 

• A) QR Codes: A simple scan can instantly transport viewers to a checkout page. 
• B) Discount Notes: On-screen deals that make shopping irresistibly tempting. 

(We can only imagine how crazy things would get if Gus Fring started selling Los Pollos Hermanos fried chicken through shoppable ads.) 

Advertisers and brands can expand the possibilities by integrating innovative shoppable ad features.  

• Voice Commands: Add items to your cart by speaking to your home speaker or smart TV. 
• Wishlist Integration: Save must-have items directly on your TV for future purchases. 
• Instant Payment & Shipping: Seamlessly complete transactions on your TV screen. 

Here’s another stat to chew on: 71 percent of viewers always have their phones handy while watching TV. This multitasking behavior allows advertisers to connect the dots between TV ads and smartphone shopping. 

By delivering interactive, attention-grabbing, shoppable ads, brands can transform passive viewers into active customers, maximizing their impact and maintaining recall value long after the ad ends. In the race to dominate the CTV advertising space, shoppable ads are undoubtedly the game-changer. 

Globally, the USA is topping the list in CTV advertising while LATM, EMEA, and APAC are following with momentum  

Regarding Connected TV (CTV) advertising, the USA isn’t just leading the pack—it’s sprinting ahead of the global field. North America, particularly the United States, commands the lion’s share of the CTV advertising market, boasting a staggering $30.10 billion in ad spending for 2024—a whopping 22.4 percent increase from last year. The CTV landscape here is dominated by Roku, holding a hefty 48 percent market share, while Samsung, Amazon, Apple, and LG divvy up the rest of the pie. 

Publishers like NBCUniversal are entering Private Marketplace (PMP) deals, enabling advertisers to tap into first-party data from platforms like Instacart for laser-focused targeting and performance tracking. Disney isn’t sitting this one out either—it’s inked a deal with Walmart Connect, while Roku has teamed up with The Trade Desk to offer buyers advanced CTV metrics, making ad investments even smarter. 

Meanwhile, in the Asia-Pacific (APAC) region, India is rising as a strong contender in the CTV game. Thanks to affordable internet access and a youthful population, the country is seeing a rapid surge in CTV users. Interestingly, 80% of Indians favor FAST (Free Ad-Supported TV) channels over subscription-based services, making the country a fertile ground for advertisers. However, this booming market comes with its own challenges, including concerns over high ad fraud volumes—a hurdle that must be tackled for sustained growth. 

Globally, regions like Latin America (LATM), Europe, the Middle East, and Africa (EMEA) are catching up fast, with increasing momentum in adoption and ad spending. Clearly, CTV advertising is no longer just an American phenomenon; it’s becoming a global movement.  

Shoppable TV in CTV advertising will allow AI to flourish  

Shoppable TV in CTV advertising isn’t just changing how we interact with ads—it’s setting the stage for AI-driven innovation to take the spotlight. As shoppable ads gain traction, the demand for high-quality video production tailored to specific audiences will skyrocket. After all, if viewers can buy what they see on their screens with just a QR code or a voice command, brands need to ensure their ads are as compelling and interactive as possible. 

Here’s where AI video production becomes the game-changer. For decades, video ads have been the cornerstone of linear TV advertising, and the shift to CTV advertising only amplifies the need for dynamic, engaging content. With AI, brands and advertisers can scale their video production processes, creating tailored content for diverse demographics, regions, and individual preferences. 

Moreover, AI isn’t here to replace creative professionals but to empower them. By automating repetitive tasks and enabling real-time editing and personalization, AI tools allow creators to focus on their craft’s artistic and strategic aspects. This means more room for innovation, higher efficiency, and the ability to produce high-quality content without compromising creativity. 

Cut to the chase 

CTV advertising is expanding exposure for interactive ads, including shoppable TV ads. The growth is unmissable every year, and it is time to redefine TV ads for a new generation in this technologically advanced era.