According to eMarketer’s Time Spent with Connected Devices 2025 report, U.S. adults will spend more digital time watching video than engaging in all other online activities combined by 2027.
Two platforms are driving this surge: connected TV (CTV), now capturing 30% of all digital time, and mobile apps at over 48%. Together they account for nearly 80% of consumer attention, and video consumption dominates both. For middle market advertising firms, this consolidation means the battle for audience attention will be won or lost in these two environments.
However, video dominance isn’t a guarantee of advertising success. Winning in a video-first world depends on mastering the nuances of each platform and harnessing the full potential of AI to deliver more relevant, tailored and engaging campaigns.
CTV and mobile have different playbooks
CTV offers a lean-back, cinematic environment. It’s good for brand building, storytelling and creating an emotional connection, but it also means agencies’ content must be polished enough to compete with professional streaming content. Mobile, by contrast, is a lean-forward, fast-scroll space. Here, ads have seconds, if that, to earn attention. This calls for short-form, thumb-stopping content designed to work natively within in-app environments.
Middle market firms can’t afford to cut corners by repurposing the same content across both platforms. Instead, they need to specialize their content for each screen’s unique engagement style.
AI changes the game
eMarketer points to major platforms already integrating AI into their ad products. Netflix is preparing interactive, generative AI-driven ads. YouTube uses AI to identify the optimal moment for ad delivery. For large holding companies, bureaucracy and risk-aversion often slows AI adoption. Middle market firms, however, can move faster—making AI an equalizer. That means leaning into:
- Platform-native AI tools to optimize targeting, placement and timing without heavy infrastructure investment
- AI-assisted creative testing, which involves producing and evaluating multiple variations to identify top performers
- Personalized storytelling, where AI tailors video ads dynamically to match audience preferences and contexts
Agility is the competitive edge. The ability to quickly integrate new AI features rather than waiting for them to become industry standards can deliver big results for clients.
Looking beyond the big two
While CTV and mobile are the dominant forces today, eMarketer’s report noted emerging ad environments—such as connected cars, smart glasses and AI-powered chatbots—that could grow quickly. Middle market agencies should keep an innovation budget to run pilot campaigns on these channels. Early experimentation won’t deliver immediate ROI, but it will build internal experience and position agencies to bring clients the next big opportunity, not just the current one.
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The takeaway
The numbers are clear: video will soon surpass all other digital activity. CTV and mobile apps are where the audience lives. The difference between winning and losing in this new landscape won’t just be who spends more, but rather who uses AI better. For middle market firms, the combination of platform-specific video strategy, rapid AI adoption and budget agility can level the playing field with even the largest agencies.
