Historically, the vast majority of TV ad spend (85% to 90%) of the markets studied has come from agencies, with a small set of direct relationships between advertisers and inventory owners. The rise of CTV has the potential to shift this balance to more advertiser- direct relationships for broadcasters and other CTV publishers as traditional access barriers of high production costs and national reach are eliminated. Indeed, in some markets like Italy and the UK, we observe advertisers that have not used traditional TV advertising before embracing CTV. Yet overall, this remains a small portion of total spend. Most sell-side respondents stated that +90% of their CTV inventory was sold to agencies.
However, as programmatic CTV advertising is introduced, many respondents expect to see more revenue coming directly from advertisers. Respondents consider underlying drivers to be increased in-housing particularly at web native brands, direct to consumer brands expanding from direct response to brand advertising and regional advertisers taking advantage of geotargeting features in CTV advertising.
Agencies Dominate Demand in Europe, But CTV is Likely to Open Up New Advertisers-Direct Business