Ad Spend Is Shifting Across Devices

YouTube is becoming an increasingly essential platform for marketers, with ad spending shifting significantly across devices. According to Tinuiti’s research, 39% of YouTube ad spending in Q4 2024 was directed to TV screens, a notable increase from 26% in the same period the previous year. This growth came at the expense of mobile ad spending, which, while still the leading device, dropped from 53% to 44%. Desktop and tablet ad spending also declined slightly, reflecting a broader industry shift toward connected TV (CTV).

Despite this growth, YouTube still lags behind traditionally purchased streaming video ads (excluding YouTube), where 60% of ad spend goes to TV screens, compared to 30% for mobiles and 10% for desktops. Streaming ad purchases through real-time bidding show a more balanced split, with TVs and mobiles each commanding a 43% share. These trends suggest that while YouTube is gaining traction on TV screens, it has yet to reach the dominance of other major streaming platforms in this space.

The broader streaming ad market saw significant growth in Q4 2024, with spending on platforms like Netflix, Max, Prime Video, and Tubi rising by 19% year-over-year, alongside an 18% increase in impressions. Notably, Amazon Prime Video experienced an explosive surge in ad spend, growing 726% in Q4 compared to Q1. CPMs remained stable across most traditional streaming platforms, but Netflix and Prime Video commanded the highest ad prices, at 2.9x and 2.4x the average, respectively.

As marketers continue to allocate more ad dollars toward streaming platforms and CTV, YouTube’s increasing presence in this space presents both opportunities and challenges. Brands must optimize their ad strategies for TV screens while maintaining a balanced approach across mobile and other devices to reach audiences effectively.

Key Actionable Takeaways:

1. Prioritize YouTube Ads for TV Screens – With a growing share of YouTube ad spend shifting to TVs, optimize ad creatives for larger screens and lean-back viewing experiences.

2. Maintain a Cross-Device Strategy – While TV screens are gaining importance, mobile still leads in ad spend. Balance campaigns across screens to maximize reach.

3. Leverage High-Impact CTV Ad Formats – Invest in immersive, high-quality video ads tailored for the TV screen to enhance engagement.

4. Monitor Shifting CPM Trends – With Netflix and Prime Video commanding premium CPMs, assess budget allocations to balance cost and audience reach.

5. Tap Into Streaming Ad Growth – As streaming ad spend continues to rise, explore opportunities on platforms like Max, Tubi, and Amazon Prime Video.

6. Use Data-Driven Audience Targeting – Employ advanced targeting tools to ensure ads reach the right viewers, whether on YouTube or other streaming services.

7. Optimize for Different Viewing Behaviors – CTV viewers engage differently than mobile users—craft messaging and visuals accordingly.

8. Experiment with Real-Time Bidding – Since mobile and TV shares are equal in real-time bidding environments, test different bidding strategies to optimize performance.

9. Track Emerging Platforms – Keep an eye on fast-growing platforms like Amazon Prime Video, which saw a massive spike in ad spend.

10. Test Performance Across Platforms – Run A/B tests to compare YouTube CTV performance against traditional streaming ads to fine-tune ad placement strategies.