Key Connected TV Statistics Every Marketer Should Know

As the landscape of television and digital media continues to evolve, connected TV (CTV) has emerged as a dominant force in the advertising world. With more viewers cutting the cord and shifting to digital content, CTV has created new opportunities for marketers to reach highly engaged audiences. Understanding the key connected TV statistics is essential for digital advertisers looking to stay ahead in an increasingly competitive space. This article explores the most important CTV statistics that can shape your advertising strategy.

What is Connected TV and Why Does It Matter?

Connected TV refers to any television that can access content over the internet, typically via streaming platforms like Netflix, Hulu, or YouTube. These TVs are connected to the internet through devices such as smart TVs, gaming consoles, or streaming sticks. CTV represents the intersection of traditional TV and the digital world, creating a hybrid environment that offers new possibilities for advertisers to engage with their audiences.

As advertisers increasingly recognize the power of CTV advertising, they must stay informed about the latest connected TV statistics to craft effective strategies. Let’s dive into the most critical metrics driving the CTV landscape today.

1. CTV Adoption Rates are Soaring

The rise of connected TV adoption is one of the most significant trends in media consumption. The switch from traditional cable TV to internet-based services has accelerated in recent years. Some of the key statistics include:

• Over 80% of U.S. households have at least one CTV device. This marks a dramatic increase from previous years, reflecting the rapid adoption of streaming services.
• More than 200 million connected TV users in the U.S. This figure has grown substantially, as more viewers shift from linear TV to digital-first content consumption.
• CTV users spend an average of 4 hours per day watching streaming content. This highlights the growing engagement with connected TV, which has become a primary entertainment source for many households.

These statistics underscore the importance of CTV in today’s media ecosystem, offering advertisers a large, engaged audience for their campaigns.

2. Connected TV’s Impact on TV Advertising

As traditional TV advertising declines, CTV is filling the gap. This shift represents a pivotal moment for marketers. Here are some important statistics related to the impact of CTV on TV advertising:

• Over 50% of TV ad dollars are expected to be spent on connected TV by 2024. Advertisers are shifting their budgets towards digital TV, recognizing the ability to reach targeted audiences with precision.
• CTV ad spend grew by 40% in 2023. As more people embrace streaming services, demand for CTV advertising is increasing.
• CTV has a 94% view-through rate (VTR). This impressive engagement rate indicates that CTV ads are not only seen but also lead to higher consumer action.

CTV has proven to be a more cost-effective and measurable advertising channel than traditional TV. With advanced targeting capabilities, CTV allows advertisers to deliver more relevant and personalized ads to viewers.

3. The Rise of OTT Advertising

Over-the-top (OTT) services, which deliver content over the internet without the need for a traditional cable subscription, have seen explosive growth. OTT advertising, closely linked to CTV, has become a game-changer for performance marketers looking for data-driven and results-oriented campaigns.

• OTT advertising revenue in the U.S. surpassed $10 billion in 2023. This figure is expected to continue growing as more consumers abandon traditional TV in favor of streaming services.
• 72% of CTV viewers are more likely to engage with ads on streaming platforms than on traditional TV. This highlights the increased receptiveness of the CTV audience, as they are more accustomed to digital ad formats.
• 40% of U.S. adults now watch content exclusively via streaming services. This shift to OTT means that advertisers must focus more on digital strategies to capture the attention of these cord-cutting audiences.

With these statistics, it’s clear that OTT advertising is becoming an essential part of a comprehensive digital marketing strategy. Advertisers who understand how to leverage OTT can tap into a highly engaged and loyal audience.

4. Audience Targeting and Measurement Capabilities in CTV Advertising

One of the greatest advantages of CTV advertising over traditional TV is its ability to provide precise targeting and measurement. Advertisers can use first-party data to target audiences based on demographics, behaviors, and interests. Key statistics related to audience targeting and measurement include:

• 60% of CTV advertising campaigns are programmatic. Programmatic advertising allows for automated, data-driven buying, making it easier for marketers to execute personalized campaigns at scale.
• 50% of marketers report better ROI with programmatic CTV campaigns. The precision targeting offered by programmatic advertising results in more relevant ad placements and higher conversion rates.
• CTV allows for granular audience segmentation, with 42% of marketers using it to target niche audiences. This level of targeting is not possible with traditional TV, which often uses broader demographic categories.

These capabilities ensure that advertisers can optimize their campaigns for maximum performance, leading to more effective demand generation and better return on investment.

5. Connected TV Viewing Habits

Understanding how viewers interact with CTV content is crucial for crafting engaging ad experiences. Here are a few key statistics that provide insight into CTV viewing habits:

• 60% of CTV users are binge-watching content. This suggests that viewers are highly engaged and ready to watch multiple episodes in a sitting, presenting advertisers with an opportunity to deliver multiple touchpoints.
• CTV viewers are more likely to skip ads during on-demand content. While CTV ads are less likely to be skipped compared to traditional TV, some viewers still prefer ad-free content. To counter this, many CTV platforms are integrating interactive ad formats to engage viewers.
• 64% of CTV users watch ad-supported video on demand (AVOD) services. As AVOD platforms continue to grow, advertisers can capitalize on the trend by reaching audiences through non-subscription-based streaming services.

These viewing behaviors suggest that advertisers should tailor their strategies to suit binge-watching habits and leverage ad-supported content to reach larger audiences.

6. The Future of CTV Advertising

The connected TV space is rapidly evolving, with new technologies and innovations continuously shaping the future of digital advertising. Key trends include:

• Interactive and shoppable ads are on the rise. As more platforms enable viewers to interact with ads, CTV will offer greater opportunities for direct consumer engagement and conversions.
• CTV is expected to account for over 50% of total TV viewing by 2026. As younger generations continue to adopt CTV, traditional TV is expected to see a continued decline in viewership.
• The integration of artificial intelligence (AI) and machine learning (ML) in CTV advertising is improving targeting and performance. AI-driven algorithms can optimize ad placements and measure effectiveness with greater accuracy, providing marketers with more actionable insights.

These trends suggest that CTV advertising will only continue to grow, providing marketers with new ways to engage with audiences, track performance, and optimize campaigns.

Conclusion

Connected TV has reshaped the advertising landscape, offering new opportunities for marketers to engage with highly targeted and highly engaged audiences. The key connected TV statistics explored in this article demonstrate the significant growth and impact of CTV and OTT advertising. As connected TV growth accelerates, the future of TV continues to shift towards digital-first experiences, making it essential for marketers to stay informed about these trends. Whether you are focusing on performance marketing, demand generation, or programmatic advertising, understanding the connected TV landscape is crucial for success.

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