Connected TV (CTV) streaming services are immensely popular right now, and statistics show that this video marketing method shows no signs of slowing down!
But you will find that advertising on CTV services is a much different experience than more traditional advertising methods. But don't let this scare you off — Embracing CTV and incorporating it into your marketing plan is a wise choice, and the proof is in the numbers when it comes to this product.
What is Connected TV (CTV)?
Put simply, Connected TV itself can be defined as any type of TV that can be connected to the internet and can stream digital video at a viewer’s convenience. And with this, CTV advertising includes ads bought programmatically and shown on big-screen TVs connected to the internet through devices such as Roku, Fire TV Stick, Google Chromecast, Smart TVs, etc. OTT advertising also streams the same kind of digital video, but on smaller screens. (mobile, desktop, tablet)
Key Benefits of CTV Advertising
CTV ads are distributed to target audiences in sophisticated ways that also allow for precise metrics to track success. Ads show when inventory is available with your target audience through a variety of streaming providers per advertisers' choice. Ads are also non-skippable, which allows you to keep viewers' focused attention, resulting in high completion rates.
Through streaming technology, Connected TV allows viewers to watch what they want whenever they want.
There is a higher amount of the content they watch that is moving to streaming platforms exclusively.
Connected TV can be a more cost-effective option overall for most consumers, making it attractive and economical.
CTV is for everyone. The average age of CTV viewers is 45 years.
CTV offers a growing & engaged audience.
CTV ads are non-skippable.
CTV ad campaigns offer advertisers the flexibility to customize their ads as well as make changes to their campaigns at any time.
Attribution tracking allows advertisers to track distinct metrics that follow a target’s actions after viewing an ad.
Statistics That Prove CTV’s Growth & Market Potential
We could go on about the benefits of incorporating CTV to your marketing plan, but we know our word only says so much. So here are some industry statistics that truly highlight the effectiveness of this sophisticated, cutting-edge video marketing product.
Some Connected TV Statistics include:
Users who pay for traditional TV and have streaming TV say they spend nearly 70% of their TV viewing time watching streaming. (Forbes)
According to eMarketer, the number of cord-cutters in the US is predicted to reach 55.1 million in 2022.
In 2022, eMarketer also estimates that the number of Connected TV users will rise to 204 million, which will represent about 60% of the population.
According to a study conducted by TiVO, survey respondents used an average of 5 paid streaming services and 3.7 free, ad-supported streaming services. Overall, consumers used 30% more streaming services in 2021 compared to 2020.
The median age of CTV viewers in the US is 45. CTV is typically thought of as a way to reach young audiences but the reality is that all age groups are watching CTV at scale (SpotX)
CTV viewers are watching an average of three hours of programming per day. That’s 45 days a year! (SpotX)
Estimates by eMarketer suggest that US advertisers will spend $14.12 billion on CTV ads by 2023.
When you look at the future of television consumption, the choice of whether or not to continue in the old ways of traditional TV advertising seems like a no-brainer, and that is because it is! As CTV continues to grow and evolve in the world of video marketing, we expect to see statistics like the ones above to grow in a positive direction for years to come. If you are interested, considering, or are on the fence about incorporating this popular video marketing platform to your marketing plan, contact our team of marketing consultants today to start a conversation!