Social Video Ads Are Eating CTV’s Lunch—And Advertisers Are Too Slow to Notice

Let’s get this out of the way: Connected TV (CTV) has been treated like the golden child of digital advertising for years, hailed as the future of video ads with its big screens and “lean-back” audiences. But here’s the inconvenient truth that Digiday’s recent IAB-backed report exposes—social video ad spending isn’t just catching up; it’s set to outgrow CTV this year. Advertisers are finally chasing eyeballs where they actually are: Facebook, YouTube, TikTok, and Instagram, not some idealized smart TV scenario.

CTV has been the darling of lazy agency decks and overhyped trade press, celebrated for its supposed precision targeting and premium viewing experience. Meanwhile, the social video ecosystem has been dismissed as a chaotic, influencer-driven mess or a place for low-tier snackable content. That narrative is collapsing. Platforms like TikTok and Instagram are commanding massive user engagement, and advertisers who stubbornly cling to CTV are hemorrhaging potential reach and impact.

The IAB’s estimates aren’t just numbers; they’re a reality check. Social video ad spending is accelerating because that’s where consumers are spending more of their screen time. The old guard of “CTV-first” advertisers need to wake up—this shift isn’t a blip. It’s a fundamental realignment of video consumption habits. If your media plan still treats social video as an afterthought or a “bonus” channel, you’re already behind.

Also, the rise of social video ads exposes the cracks in CTV’s promise. Fragmented device ecosystems, questionable measurement standards, and inventory quality issues continue to haunt the space. Meanwhile, social platforms offer granular targeting, real-time performance data, and unmatched creative flexibility. That’s not marketing fluff; that’s hard evidence of where ad dollars belong in 2024.

Here’s the uncomfortable recommendation no one wants to say out loud: agencies and brands need to ditch their CTV fetish and aggressively reallocate budgets to social video channels. Stop buying into the “premium TV screen” myth and start investing in formats and platforms where users spend their actual time. Otherwise, you’re just throwing money at yesterday’s shiny object while the audience—and your ROI—move on without you.