Cathie Wood Thinks Connected TV Stands To Benefit Most From Huge Ad-Dollar Shift Away From Linear

Cathie Wood of ARK Investment Management believes connected TV has the potential to attract advertisement money from linear TV in the wake of the significant shift seen around the world.

"Connected TV should be a prime beneficiary of the $70 billion shift in advertising dollars from linear to digital TV in the U.S. and the $170 billion shift globally," Wood tweeted, citing a tweet by Andrew Kim, Associate at ARK Investment Management LLC.

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Kim, in a series of tweets, explained how the partnership between Roku ROKU and DoorDash DASH announced on Tuesday seems like one of the most intuitive use cases for bottom-funnel CTV advertising, finally giving food services the ability to granularly target high-intent customers.

The partnership marks a meaningful step forward in catalyzing the growth of performance advertising on CTV, he said.

Partnership: Roku and DoorDash on Tuesday announced a multi-year partnership under which new and existing Roku account holders with a linked streaming or smart home device can get six months of complimentary DashPass.

For the first year of the partnership, DoorDash will be the exclusive marketplace ad solution partner for DoorDash U.S. restaurants and grocers that buy interactive shoppable ads on Roku.

According to ARK, total CTV ad spend should grow 20% in real terms at a compound annual rate, from $21 billion in 2022 to over $50 billion in 2027. At the same time, ARK believes U.S. TV linear ad spending should decline 8% at an annual rate during the next five years, from $70 billion to $45 billion by 2027.

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