Innovid Report: CTV Ad Spend Should Be Higher

Ad spending in CTV is not near what it should be given its potential and sophisticated targeting, reach, and ad formats, according to a report by Innovid, which recently released its 2025 CTV Advertising Insights Report.

Citing data from eMarketer, the Innovid report noted that while eyeballs and time spent on streaming content among viewers are increasing by the millions, “advertiser spending is not trending at the same pace. Last year, U.S. adults spent 17.9% of their time spent with media watching CTV, but brands invested only 7.4% of total media spend on CTV advertising.”

Innovid is part of Mediaocean but remains an independent advertising platform that helps ad performance on behalf of brands, agencies, and publishers across CTV, linear, digital, social, and display. Creative personalization, ad serving, measurement, and optimization are also offered in the platform.

At this year’s Upfronts, various CTV platforms are debuting new ad units that include Interactive ads, shoppable ads, and dynamic creative optimization (DCO) ads.

Amazon caused a stir with its contextual ad units for its Prime Video streaming service—ones that are served and are relevant to the content being viewed. It also showcased an ad unit that is served if viewers pause the action. AI-generated creative will appear that is also tangentially relevant to the content that has been paused, right down to the scene in question.

Dan Mouradian, SVP, Global Client Solutions at Innovid, sat down with StreetFight to discuss emerging ad format that are more interactive.

Why does ad spending lag in your opinion relative to the value that CTV delivers for advertisers?

There’s no question that viewers have moved to streaming but ad budgets haven’t kept pace, and that’s due to fragmentation. CTV isn’t a single destination like traditional broadcast. It’s a complex web of platforms, publishers, devices, and data signals. But with the right tools, it becomes an opportunity to make every impression smarter. Independent ad tech partners have helped to unify this complexity by connecting creative, delivery, measurement, and optimization across channels in one place. And as marketers gain a clearer, more actionable view of reach, frequency, and performance, they’re treating CTV as not just a reach or reach extension plays, but as a performance engine that can deliver outcomes across the funnel.

The report describes viewing as a “lean back” experience and interactive ads as a “lean-forward” one. What makes you think viewers will interrupt their viewing to “lean forward” and interact with ads?

No one wants to force interaction but when it’s relevant, situationally appropriate, or entertaining, viewers do engage. Our data shows that interactive CTV ads deliver an average of 71 additional seconds of viewer engagement vs. standard pre-roll. QR code scans, add-to-cart buttons, personalization, and interactive galleries give viewers choice, and we’re seeing steady growth in both engagement rates and advertiser investment in these advanced creative formats.

What’s a non-choice interactive ad as opposed to a choice interactive ad?

A choice-based ad is one that’s part of a “value exchange” – like watching an ad in order to access content or ads-free content. A non-choice-based ad appears during regular ad breaks but includes features like QR codes, overlays, interactivity, or product carousels. Viewers aren’t required to interact with it, but the opportunity is there if they’re interested. It’s about creating an invitation to engage without disrupting the viewing experience. Both formats play distinct roles and offer marketers new ways to drive awareness, measure, optimize against that action.

Is there any concern that these more sophisticated ad formats will become annoying to viewers by interrupting their viewing experience at every opportunity?

That’s a valid concern. The key is relevance. Interactive doesn’t mean intrusive. The best-performing campaigns invite engagement not demand it. Innovid’s platform allows marketers to personalize and optimize creative based on data-backed insights, so the right message reaches the right audience at the right time. The result is a more meaningful, engaging experience, and not disruption for disruption’s sake. Increasingly though, consumers are choosing ad-supported CTV plans with service providers. In fact, recent IAB research cites eight in 10 consumers choose an ad-supported tier when signing up to a service provider.

Can these ads be turned off? 

Most interactive ads are built to be non-disruptive. Viewers can choose whether or not to engage. And because they often sit within existing ad slots, they don’t “pop up” in the way traditional ads might. The interactivity is there if you want it and ignorable if you don’t.

Will there be more of an emphasis on the quality of the creative when ads are shorter, and even when they are longer let’s say, on mobile devices?

Absolutely. We live in a world of skippable ads and multitasking viewers, so quality matters more than ever. Innovid’s data shows that shorter ads drive better completion rates, but longer ones can perform better for click-through rates, especially on mobile. That means every second counts. Whether it’s a six-second bumper or a 90-second explainer, the creative needs to be intentional, relevant, and tailored to the viewer.

Will any of this creative be AI-generated or is that already the case?

AI is already playing a big role in ad creative – from automating dynamic templates to personalizing content for different audiences and contexts. We see AI as a creative “co-pilot” to help marketers produce at scale, optimize in real time, and match the message to the moment. Human creativity is still at the core, but AI is making it faster, smarter, and more adaptive.

What do these new ad formats mean for ad agencies and media-buying agencies?

They mean more opportunity. Agencies now have the tools to connect creative, media, and measurement in real time. Interactive and dynamic formats allow for faster learning and greater precision. That also means agencies no longer have to treat CTV as a top-of-the-funnel channel alone. Outcomes can be tracked and optimized, and that shifts how agencies should approach planning, activation, and client strategy.

Want to learn more about interactive ad formats? Join us at Street Fight LIVE 2025!