A projected $20 billion ad-spend boom by 2029 signals a definitive power shift from linear TV to streaming, creating new billion-dollar opportunities and complex challenges around AI and ad verification.
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Streaming Ad Market to Hit $20 Billion by 2029 as AI Changes the Game
Advertiser spending on streaming platforms is projected to reach $20 billion by 2029, a surge fueled by consumers flocking to cheaper ad-supported plans and a fundamental reshaping of the television market. This migration of ad dollars is creating clear winners and losers, forcing media companies to adapt or risk being left behind as connected TV (CTV) and even AI chatbots emerge as the new advertising battlegrounds.
“As AI drives digital advertising to become more automated, agentic, and opaque, and as AI slop becomes the must-avoid content category for advertisers, the need for independent verification, protection, and performance measurement has never been greater,” Mark Zagorski, CEO of DoubleVerify, said on the company’s recent earnings call.
The growth is already evident in recent corporate earnings. DoubleVerify, a key player in digital ad measurement, reported a 28 percent year-over-year increase in CTV measurement impression volumes in its first quarter. E.W. Scripps saw its connected TV revenue jump 26 percent in the same period, while Fox Corp.’s Tubi streaming service posted a 23 percent rise in quarterly revenue. This data shows a clear trend: advertisers are following eyeballs to streaming services, and the platforms that successfully monetize this shift are reaping the rewards.
At stake is a massive reallocation of the estimated $400 billion search advertising market and traditional TV ad budgets. The rise of streaming not only changes where ads are shown but how they are bought, measured, and verified. According to eMarketer, ad spend on large language model (LLM) chatbots alone is forecast to grow by over $25 billion by 2029, creating an entirely new revenue stream that companies like DoubleVerify are positioning to measure and protect.
The Verification Challenge: Fraud and 'AI Slop'
The rapid growth in streaming advertising has been accompanied by a surge in sophistication from fraudsters. As advertisers pour money into CTV and other digital video formats, they face increasing risks from invalid traffic and brand safety issues. DoubleVerify’s fraud lab reported that AI-powered bot scheme variants grew 140 percent more in the first quarter of 2026 compared to the prior year, and it has classified over 1,300 mobile and CTV apps as fraudulent since the beginning of the year.
A new challenge is the proliferation of low-quality, AI-generated content, which DoubleVerify has termed “AI slop.” To combat this, the company has rolled out tools like its “AI Slop Stopper,” which is already applied to over 40 percent of its measured impressions. These solutions are designed to help brands ensure their ads do not appear alongside questionable or unsuitable AI-generated material, a crucial step in maintaining advertiser trust.
Live Sports and LLMs: The Next Ad Frontiers
Beyond movies and television series, live sports are proving to be a powerful engine for ad-supported streaming. E.W. Scripps credited its live sports strategy, including deals with the National Hockey League, for its industry-leading 7 percent core advertising growth in the first quarter. By securing local and national sports rights for its broadcast and streaming platforms, Scripps is capturing ad revenue that might otherwise go to traditional cable.
Looking further ahead, the advertising industry is already preparing for the monetization of AI chatbots. Executives at DoubleVerify noted that while the space is nascent, their enterprise customers have made it clear that scaling their ad budgets in AI environments will require robust, independent measurement. With OpenAI projecting it could generate $100 billion in advertising revenue by 2030, the race is on to build the verification and transparency infrastructure needed for this new ecosystem to thrive, suggesting a significant long-term growth runway for companies that provide the essential trust layer for digital advertising.
This article is for informational purposes only and does not constitute investment advice.
