Key Highlights
- The Connected TV advertising market is projected to reach $14.2 billion by 2027
- Over 80% of US households have at least one connected TV device
- 73% of marketers say connected TV is key to reaching younger audiences
- The average household spends over 2 hours per day watching connected TV
- 60% of viewers watch connected TV content via smart TVs
- Connected TV ad impressions in the U.S. are expected to grow at a CAGR of 8.5% from 2023 to 2028
- 45% of advertisers increased their CTV ad budgets in 2023
- The average click-through rate (CTR) for CTV ads is approximately 0.5%
- 70% of ad opportunities on connected TV are delivered programmatically
- 64% of viewers are more likely to recall ads aired on connected TV compared to linear TV
- The global connected TV advertising market size was valued at $4.2 billion in 2022
- 52% of consumers prefer watching streaming content on connected TVs rather than traditional broadcast TV
- 58% of advertisers plan to increase CTV ad spend in the next year
Connected TV advertising is revolutionizing the media landscape, with projections estimating the market will soar to $14.2 billion by 2027 and over 80% of U.S. households now embracing connected devices, fueling a significant shift toward targeted, engaging, and high-impact ad experiences.
Advertising Effectiveness and Performance Metrics
- The average click-through rate (CTR) for CTV ads is approximately 0.5%
- 64% of viewers are more likely to recall ads aired on connected TV compared to linear TV
- CTV ad viewability rates are approximately 84%, higher than linear TV
- The median CTV ad length is around 15 seconds
- 89% of marketers believe CTV is effective for brand awareness campaigns
- 35% of consumers have purchased a product after seeing a CTV ad
- Interactive CTV ads have a click-through rate of 1.2%, more than twice the average for traditional CTV ads
- Dynamic ad insertion in CTV allows for real-time personalization and is used in over 70% of CTV campaigns
- CTV advertising click-to-conversion rates average around 3%, which is higher than linear TV ad response rates
- CTV ad frequency averages 4.3 exposures per viewer per month, balancing reach and annoyance
- The average duration of CTV ad campaigns is approximately 6 weeks
- CTV ads achieving engagement rates (watch-through) are approximately 78%, outperforming linear TV
- CTV advertising helps increase brand lift by an average of 18% compared to traditional media
Advertising Effectiveness and Performance Metrics Interpretation
Market Growth and Investment Trends
- The Connected TV advertising market is projected to reach $14.2 billion by 2027
- Connected TV ad impressions in the U.S. are expected to grow at a CAGR of 8.5% from 2023 to 2028
- 45% of advertisers increased their CTV ad budgets in 2023
- The global connected TV advertising market size was valued at $4.2 billion in 2022
- 58% of advertisers plan to increase CTV ad spend in the next year
- The average cost per thousand impressions (CPM) for CTV advertising is $25
- CTV ad revenues are expected to account for over 30% of all digital video ad revenue by 2025
- The global CTV advertising spend is projected to reach $35 billion in 2024
- 55% of ad spend on CTV is dedicated to brand awareness campaigns, indicating its importance for branding efforts
- 82% of ad buyers plan to increase their CTV advertising budgets in the next year
- The adoption rate of ad-supported streaming services increased by 15% in 2023, boosting opportunities for advertisers
- With the rise of CTV, traditional linear TV ad spend declined by 10% in 2023, indicating shift in advertising budgets
Market Growth and Investment Trends Interpretation
Platform Usage and Content Consumption Patterns
- The average U.S. household has accessed 5 different streaming platforms in the past month
- The top three CTV platforms in the US are Roku, Amazon Fire TV, and Apple TV, with combined market share exceeding 60%
- Over 90% of CTV content is streamed on demand, highlighting its flexibility for advertisers
Platform Usage and Content Consumption Patterns Interpretation
Technological Innovations and Targeting Capabilities
- 70% of ad opportunities on connected TV are delivered programmatically
- 60% of advertisers cite targeting capabilities as a primary reason for investing in CTV
- The use of first-party data for CTV targeting increased by 40% in 2023, enhancing ad relevance
- The majority of CTV ad spend (around 65%) is allocated to targeting and data-driven ad placements, reflecting its personalized advertising strength
Technological Innovations and Targeting Capabilities Interpretation
Viewer Behavior and Demographics
- Over 80% of US households have at least one connected TV device
- 73% of marketers say connected TV is key to reaching younger audiences
- The average household spends over 2 hours per day watching connected TV
- 60% of viewers watch connected TV content via smart TVs
- 52% of consumers prefer watching streaming content on connected TVs rather than traditional broadcast TV
- 48% of households use ad-supported free streaming services
- 46% of viewers find CTV ads more relevant than linear TV ads
- 40% of households have more than three connected TV devices
- 83% of viewers watch ad-supported streaming content weekly
- 78% of users watch connected TV content via apps on smart TVs
- 47% of ad viewers find connected TV ads less intrusive than traditional TV commercials
- 65% of American households subscribe to at least three streaming services
- 72% of viewers are likely to skip or block ads on connected TV if given the opportunity
- The average age of CTV viewers is 35-54 years old, making it a prime demographic for various brands
- 67% of CTV viewers are also app users, allowing for cross-platform marketing strategies
Viewer Behavior and Demographics Interpretation
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