While traditional TV ads fade to black, the connected TV revolution is exploding with over $21 billion in US advertising revenue alone, as viewers increasingly ditch cable for streaming platforms where targeted ads achieve 92% completion rates and drive 3.2x ROI for savvy brands.
Key Takeaways
- In 2023, US connected TV (CTV) advertising revenue reached $21.3 billion, marking a 22% year-over-year increase
- Global CTV ad spend is forecasted to hit $34 billion by 2025, growing at a CAGR of 18.5% from 2021-2025
- CTV advertising accounted for 80% of all TV ad spend growth in the US during 2022
- 76% of US CTV viewers are aged 18-49, with millennials comprising 42% of the audience
- Women account for 52% of CTV viewing time in the US, slightly higher than men at 48%
- 62% of Gen Z (18-24) report watching CTV daily, compared to 45% for linear TV
- CTV CPMs averaged $28.50 in the US in 2023, 15% higher than desktop display
- CTV ads achieve 1.7x higher brand lift than linear TV for awareness metrics
- View-through rate for CTV video ads hit 92% completion, vs 75% for mobile
- Roku CTV platform reports 28% YoY growth in active accounts to 81 million in Q3 2023
- Amazon Fire TV holds 22% share of US CTV OS market in 2023
- Apple TV+ subscribers reached 25 million globally by end-2023
- CTV market expected to reach $300 billion globally by 2030 with 95% household penetration
- By 2025, 90% of US TV viewing will be on-demand CTV
- Programmatic CTV buying to account for 85% of spend by 2026
Rapidly growing CTV ad revenue proves streaming now dominates television marketing.
Ad Performance & ROI
- CTV CPMs averaged $28.50 in the US in 2023, 15% higher than desktop display
- CTV ads achieve 1.7x higher brand lift than linear TV for awareness metrics
- View-through rate for CTV video ads hit 92% completion, vs 75% for mobile
- ROI on CTV campaigns averaged 3.2x for e-commerce brands in 2023
- 34% uplift in purchase intent from personalized CTV ads
- CTV search lift post-exposure averages 22%, highest for CPG categories
- Engagement rate for interactive CTV ads reached 18%, 4x traditional video
- Cost per acquisition on CTV dropped 12% YoY to $45 in Q4 2023
- 2.1x higher recall rates for 15-second CTV spots vs 30-second
- CTV attribution shows 28% of conversions within 1 hour of exposure
- Favorability lift from CTV ads averaged 14 points for auto brands
- Video completion rate on CTV reached 89% for live sports ads
- CTV drives 15% higher ROAS than social video at 4.5x average
- 41% reduction in CPA for retargeting campaigns on CTV platforms
- Brand awareness from CTV mid-roll ads up 25% vs pre-roll
- CTV ads generate 1.9x more site visits than linear TV per impression
- Average click-through rate for shoppable CTV ads at 2.3%
- 32% increase in offline sales lift from CTV exposure for retail
- CTV dynamic creative optimization boosts performance by 22% on average
- Consideration lift of 19% for QSR brands via CTV humor ads
- CTV frequency capping at 3-5 exposures optimizes ROI by 18%
- 27% higher engagement for AR-enabled CTV ads
- Cross-device conversion rate from CTV at 11%
- CTV pause ads yield 2.4x lift in intent vs standard formats
- Average eCPM for premium CTV inventory $35 in 2023
- 1.4x better IVT rates on CTV vs open web (98% viewable)
- CTV contributes 24% to total video ad ROI across channels
- Live CTV streaming ads see 35% higher completion rates
Ad Performance & ROI Interpretation
While the living room's new king, Connected TV, charges a princely premium, it pays back the crown with royally good attention, results, and a case for burning your linear budget on the ceremonial pyre.
Market Size & Growth
- In 2023, US connected TV (CTV) advertising revenue reached $21.3 billion, marking a 22% year-over-year increase
- Global CTV ad spend is forecasted to hit $34 billion by 2025, growing at a CAGR of 18.5% from 2021-2025
- CTV advertising accounted for 80% of all TV ad spend growth in the US during 2022
- By 2027, CTV ad revenue in North America is expected to surpass $40 billion, driven by streaming service adoption
- In Q4 2023, CTV ad impressions in the US grew 28% YoY to over 1.2 trillion
- European CTV ad market valued at €2.5 billion in 2023, projected to double by 2026
- CTV represented 45% of total US video ad spend in 2023, up from 35% in 2021
- Asia-Pacific CTV ad spend reached $8.6 billion in 2023, with China contributing 60%
- US CTV households grew to 84 million in 2023, representing 68% penetration
- CTV ad spend in Latin America expected to grow 35% YoY to $1.2 billion in 2024
- In 2023, programmatic CTV ad buying accounted for 75% of total CTV ad transactions in the US
- Global CTV ad market CAGR projected at 20.1% from 2023-2030, reaching $72 billion by 2030
- UK CTV ad revenue hit £1.1 billion in 2023, up 25% from 2022
- CTV overtook linear TV in ad impressions in the US in Q3 2023 with 52% share
- Australia CTV ad spend forecasted at AUD 1.2 billion by 2025
- In 2023, retail media networks captured 15% of US CTV ad spend, totaling $3.2 billion
- CTV ad revenue per smart TV household in US averaged $250 in 2023
- MEA region CTV ad market to grow from $450 million in 2023 to $1.8 billion by 2028
- US political CTV ad spend reached $1.5 billion in 2022 midterms
- CTV share of total digital video ad spend globally hit 38% in 2023
- In 2023, 65% of US CTV ad spend came from top 10 advertisers like Procter & Gamble and Amazon
- Canada CTV ad market valued at CAD 1.4 billion in 2023, growing 19% YoY
- CTV ad spend in India surged 40% to INR 15 billion in 2023
- By end of 2023, global CTV devices shipped exceeded 1.5 billion units cumulatively
- US pharma CTV ad spend hit $2.1 billion in 2023, up 30% YoY
- CTV advertising grew to 12% of total US ad market in 2023 from 8% in 2021
- Brazil CTV ad revenue reached BRL 2.8 billion in 2023
- In H1 2023, CTV ad load times averaged 4.2 seconds, impacting 15% of impressions
- Global CTV SSP market revenue projected at $5.2 billion by 2026
- US automotive CTV ad spend totaled $1.8 billion in 2023
Market Size & Growth Interpretation
As the world's living rooms continue their quiet mutiny against traditional commercials, these explosive growth figures prove that advertisers, in a desperate and lucrative scramble, are now following their audiences through the screen and directly onto the streaming services they actually watch.
Platform & Device Stats
- Roku CTV platform reports 28% YoY growth in active accounts to 81 million in Q3 2023
- Amazon Fire TV holds 22% share of US CTV OS market in 2023
- Apple TV+ subscribers reached 25 million globally by end-2023
- Samsung Smart TV ad platform served 450 billion impressions in 2023
- Google TV (Chromecast) penetration at 15% of US smart TVs in 2023
- Hulu CTV ad revenue grew 20% to $4 billion in FY2023
- Vizio SmartCast platform has 18 million active users, 12% ad revenue growth
- LG webOS CTV ads reached 1 trillion impressions annually in 2023
- Netflix ad-tier launched with 15 million subscribers by Q4 2023
- Peacock CTV monthly active users hit 28 million in 2023
- Smart TV device shipments globally at 248 million units in 2023
- Hisense VIDAA OS captures 8% Europe CTV market share in 2023
- Disney+ ad-supported tier grew to 5 million US subs in first year
- Android TV/ Google TV devices activated: 200 million worldwide in 2023
- Paramount+ ad revenue up 55% YoY in 2023
- TiVo OS used in 12 million US CTV households
- Freevee (Amazon) streams 100 million hours daily on CTV
- Sony Bravia TVs with Google TV sold 10 million units in 2023
- Tubi FAST service reaches 74 million MAUs on CTV in 2023
- Xbox gaming consoles used for CTV streaming by 25% of owners weekly
- PlayStation CTV app impressions up 40% to 50 billion in 2023
- Comcast Xfinity Flex serves ads to 20 million devices monthly
- Sling TV CTV subscribers stable at 2.2 million, ad load increased 15%
- TCL Roku TVs hold 28% US smart TV market share in 2023
- Pluto TV MAUs reach 80 million globally on CTV
- Nvidia Shield CTV streaming devices: 5 million active in 2023
- YouTube CTV watch time up 30% YoY to 1 billion hours daily
- FuboTV ad impressions grew 50% to 200 billion in 2023
- Amazon Prime Video CTV ad launch projected $1B revenue in year 1
Platform & Device Stats Interpretation
The living room has officially become a gladiatorial arena where every screen, operating system, and streaming service is fiercely competing for your attention and your advertisers' dollars, proving that the future of television is not just about what you watch, but who can most cleverly pay for the privilege of showing it to you.
Trends & Forecasts
- CTV market expected to reach $300 billion globally by 2030 with 95% household penetration
- By 2025, 90% of US TV viewing will be on-demand CTV
- Programmatic CTV buying to account for 85% of spend by 2026
- Shoppable CTV ads to grow 50% annually through 2027
- AI-driven CTV targeting to reduce waste by 30% by 2025
- FAST channels to capture 20% of CTV ad market by 2025
- Global CTV households to hit 2 billion by 2027
- Addressable CTV ads to reach 70% penetration in US by 2025
- Live sports streaming on CTV to double ad revenue to $10B by 2026
- Privacy-first CTV solutions to dominate post-cookie era by 2024
- CTV gaming ads to grow at 25% CAGR to $5B by 2028
- Interactive CTV formats to comprise 15% of inventory by 2026
- Retail media CTV spend to hit $10B globally by 2027
- 5G integration to boost CTV 4K ad delivery by 40% by 2025
- User-generated content on CTV to increase 35% YoY through 2026
- CTV carbon-neutral ad campaigns to rise to 50% by 2030
- Voice commerce via CTV ads projected $2B by 2026
- Cross-screen CTV orchestration to standard by 2025 for 80% agencies
- Blockchain for CTV ad transparency adoption at 25% by 2027
- AR/VR CTV experiences to generate $3B ad revenue by 2028
- Global South CTV growth at 28% CAGR to 2028
- CTV news consumption to surpass linear by 2025 with 55% share
- Dynamic ad insertion tech to cover 95% CTV by 2024
- Social video integration on CTV to boost engagement 40% by 2026
- Zero-party data CTV targeting to rise to 60% by 2027
- CTV podcast companion ads to emerge with $1B market by 2028
- Sustainable packaging ads on CTV to grow 45% annually to 2027
- Metaverse-linked CTV campaigns projected for 10% share by 2030
Trends & Forecasts Interpretation
This avalanche of stats foretells a future where, under the guise of relaxing on the couch, we are all willingly strapped into a highly efficient, data-driven, and surprisingly green shopping cart hurtling through an endless, personalized, and interactive ad experience.
Viewer Demographics & Habits
- 76% of US CTV viewers are aged 18-49, with millennials comprising 42% of the audience
- Women account for 52% of CTV viewing time in the US, slightly higher than men at 48%
- 62% of Gen Z (18-24) report watching CTV daily, compared to 45% for linear TV
- Households with children under 18 have 2.1x higher CTV usage than average
- 55% of US Hispanics stream CTV content exclusively, vs 38% of non-Hispanics
- Baby boomers (55+) represent 28% of CTV ad exposure but only 22% of population
- Urban CTV viewers spend 35 hours/week on streaming, 18% more than rural viewers
- 68% of high-income households ($100k+) own 3+ CTV devices
- African American viewers over-index on CTV by 25% compared to general population
- 41% of CTV viewers multitask with mobile devices during ad breaks
- College-educated viewers are 1.5x more likely to use ad-supported CTV tiers
- 73% of parents aged 25-34 use CTV for family viewing 5+ nights/week
- Males aged 25-34 comprise 22% of prime-time CTV audience
- 59% of seniors (65+) prefer news content on CTV over linear TV
- LGBTQ+ viewers spend 28% more time on CTV sports content
- 64% of US CTV households have at least one Roku device
- Average CTV viewing session lasts 47 minutes, 12% longer than mobile video
- 52% of CTV viewers skip ads when possible, highest among 18-34 age group at 67%
- Gamers (weekly) over-index CTV gaming content viewership by 40%
- 71% of fitness enthusiasts stream workout videos on CTV monthly
- Rural households average 22 CTV streaming hours/week, up 15% YoY
- 48% of CTV viewers are single-person households
- Veterans represent 9% of CTV audience, 1.3x over-index on military content
- 66% of pet owners use CTV for pet-related programming weekly
- Students (18-24) watch 30% more late-night CTV content
- 57% of eco-conscious consumers prefer sustainable brand ads on CTV
Viewer Demographics & Habits Interpretation
In the great streaming migration, the remote control has become a demographic divining rod, revealing that the future of television belongs not to the average household but to a vibrant, multi-screen mosaic of millennials raising their families, Gen Z skipping ads, urbanites bingeing, and everyone—from Hispanics to pet owners—finally finding their channel.
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