The Future of CTV Advertising: Trends to Watch in 2025-2026
Explore the key trends and innovations shaping the next evolution of streaming TV advertising—from shoppable ads to AI-powered targeting.
Connected TV advertising is evolving rapidly, driven by technological innovation, changing viewer behaviors, and new measurement capabilities. For small and medium businesses, understanding these trends isn't just interesting—it's essential for staying competitive and maximizing advertising effectiveness. Here's what's coming next in CTV advertising and what it means for your business.
Trend #1: Shoppable CTV Ads Become Mainstream
The line between watching and shopping is disappearing. According to IAB's 2025 CTV Innovation Report, shoppable TV ads are expected to grow 250% in adoption by 2026, transforming passive viewing into active commerce.
How Shoppable Ads Work
Viewer Sees Product in Ad
Woman watching cooking show sees ad for cast iron skillet during commercial break
On-Screen Prompt Appears
"Press OK on remote to add to cart" or "Scan QR code with phone to buy now"
Instant Purchase
Purchase completes through saved payment method or mobile checkout—no leaving the TV
What This Means for SMBs: E-commerce businesses and product-based companies will be able to drive direct sales from TV ads, not just website traffic. Expect CTV to compete directly with social commerce and digital display advertising for conversion campaigns.
Trend #2: AI-Powered Dynamic Creative Optimization
Static ads are giving way to dynamic, personalized creative that adapts to each viewer. AI-driven dynamic creative optimization (DCO) will allow SMBs to show different ad variations based on viewer demographics, behaviors, and context—automatically.
Traditional Static Ads (Current)
- • One ad shown to all viewers
- • Generic messaging for broad appeal
- • Manual A/B testing required
- • Limited personalization
Dynamic AI-Optimized Ads (2026)
- • Personalized ad per household
- • Messaging adapts to viewer profile
- • AI tests 100+ variations automatically
- • Continuous learning and improvement
Example: Local Restaurant Dynamic Creative
Shows: Family dining scene, kids' menu highlight, "Kids eat free Tuesday" message
Shows: Date night ambiance, cocktail menu, "Happy hour 4-7pm" message
Shows: Quick lunch options, "Order ahead for pickup" message, business lunch scene
Trend #3: Cross-Device Attribution Gets Smarter
The customer journey is fragmented across devices: watch ad on TV → search on phone → research on laptop → purchase on tablet. Future attribution will seamlessly track this entire journey with precision.
The 2026 Attribution Ecosystem
CTV Ad Exposure
Device ID captured, household identified, timestamp recorded
Mobile Search
Cross-device graph matches phone to TV household, search query tracked
Desktop Research
Cookie matching links laptop to household, site behavior analyzed
Purchase Attributed
Full journey mapped: CTV ad → assisted conversions → sale credited to initial TV exposure
According to eMarketer forecasts, multi-touch attribution accuracy will improve from 65% to 90%+ by 2026 thanks to better identity resolution and privacy-compliant tracking methods.
Trend #4: Programmatic CTV Buying Becomes Easier
Programmatic advertising—automated buying using real-time bidding—is becoming more accessible to SMBs. What once required enterprise-level technology and expertise is now available through user-friendly platforms.
2023: Complex
- • Demand-side platforms (DSPs)
- • Technical expertise required
- • $50K+ minimums
- • Agency managed only
2025: Improving
- • Self-serve platforms emerging
- • Simplified interfaces
- • $5K+ accessible
- • Guided setup available
2026: SMB-Friendly
- • One-click campaign setup
- • AI-powered optimization
- • $500+ entry points
- • Full self-service + support
Trend #5: Voice-Activated Ad Interactions
As smart TVs integrate voice assistants (Alexa, Google Assistant, Siri), ads will become interactive through voice commands.
Voice-Interactive Ad Scenario (2026):
Ad plays: "New summer menu at Bella's Italian Kitchen. Say 'Hey Google, book a table' to reserve your spot."
Viewer responds: "Hey Google, book a table at Bella's"
Assistant confirms: "I can reserve a table for 2 at Bella's Italian Kitchen for Friday at 7pm. Shall I proceed?"
Reservation confirmed directly from ad interaction—never leaving the TV
Trend #6: Privacy-First Targeting Solutions
As privacy regulations tighten and third-party cookies disappear, CTV is pioneering privacy-compliant targeting methods that still deliver precision without compromising user data.
Contextual Targeting 2.0
AI-powered contextual targeting analyzes content, not users. Show auto repair ads during car shows, fitness ads during sports, home improvement ads during renovation shows—without tracking individual behavior.
First-Party Data Collaboration
Advertisers share consented customer data directly with publishers in secure, privacy-preserving environments (data clean rooms) for targeting without exposing personal information.
Cohort-Based Targeting
Target groups of similar users (cohorts) rather than individuals. Google's Privacy Sandbox and similar initiatives allow effective targeting while protecting individual privacy.
Trend #7: Hybrid Linear + CTV Buying
The distinction between traditional and streaming TV continues to blur. By 2026, unified buying platforms will allow SMBs to purchase both linear and CTV inventory together, optimizing reach across all TV viewing.
Benefits of Unified TV Buying
- ✓Maximum Reach: Cover cord-cutters (CTV) and traditional viewers (linear) with one campaign
- ✓Frequency Management: Prevent overexposure by capping frequency across both formats
- ✓Budget Optimization: AI automatically shifts spend to better-performing format
- ✓Unified Reporting: See total TV performance in one dashboard
What SMBs Should Do Now
These trends present both opportunities and challenges for small businesses. Here's how to prepare:
1. Start Building Your CTV Presence Early
Don't wait for competitors to dominate. Establish your brand on CTV now while costs remain lower and learn the platform before advanced features launch.
2. Invest in Quality Video Content
Dynamic creative and shoppable ads still need strong base content. Build a library of video assets—testimonials, product demos, brand stories—that can be adapted for future formats.
3. Collect First-Party Data
Build your email list, encourage account creation, gather customer data with consent. Your first-party data becomes more valuable as third-party targeting declines.
4. Partner with Forward-Thinking Platforms
Work with CTV platforms that are innovating—adopting shoppable ads, AI optimization, advanced attribution—so you benefit as new features roll out.
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Future of CTV: Key Trends
- •Shoppable CTV ads will grow 250% by 2026, enabling direct purchases from TV (IAB)
- •AI-powered dynamic creative will personalize ads for each household automatically
- •Cross-device attribution accuracy improving from 65% to 90%+ (eMarketer)
- •Programmatic buying becomes SMB-friendly with $500+ entry points
- •Voice-activated ad interactions enable frictionless conversions
- •Privacy-first targeting solutions maintain precision without compromising user data
- •Unified linear + CTV buying optimizes reach across all TV viewing
Sources & References
- • IAB 2025 CTV Innovation Report - Shoppable Ads Growth Projections
- • eMarketer CTV Forecast 2025-2026 - Attribution & Technology Trends
- • Industry trend analysis: MNTN, Vibe.co, PlaceWise Media technology roadmaps