Connected TV Statistics: Advertising, Viewership & Growth Trends

3 Min Read

Connected TV viewership continues to rise in popularity among consumers, due to the ease of access to an array of content options through both free ad-supported and subscription services. What do the statistics say about the new trend shift in CTV usage?

Connected TV Growth: A Quick Summary

In 2020 alone, the total hours spent with CTV devices was up 81% year over year, as reported by Nielsen. Many advertisers are also interested in learning which demographics are most likely to be watching their favorite shows on Connected TV devices. And according to eMarketer, while younger audiences are more likely to be CTV viewers, older demographics are also switching from traditional TV.

Their data reveals that American CTV viewers in 2020 totaled 45.7 million for Gen Z, 56.5 million for millennials, 48.5 million for Gen X, and 32.8 million for baby boomers –– adding up to 183.5 million viewers overall. 

As these viewers continue to migrate over to streaming services, this is having a direct impact on increasing Connected TV ad spend for the foreseeable future. In 2020, U.S. Connected TV marketing spend rose to $8.11 billion, and as you’ll see in a moment, that number keeps getting larger.

This acceleration in spending will only continue as it pulls from both digital and linear TV advertising budgets (which totaled $155 billion in 2020). Ultimately, the lure of more viewers and better tracking and measurement will prove too good to pass up, and it looks like marketers are taking notice.

• Learn More: Streaming TV Advertising: The Definitive Guide for Marketers

Connected TV Demographics & Viewership Trends

• The number of monthly Connected TV users in Gen Z is expected to rise from 49.6 million individuals in the US in 2022 to 56.1 million by 2025. (+6.5 Million) (1)
• The number of monthly Millenial Connected TV users is expected to rise from 60.5 million individuals in the US in 2022 to 62.6 million by 2025. (+2.1 Million) (1)

Connected TV Usage Statistics

• Around 73% of Connected TV viewers prefer to watch free ad-supported content vs. paying for ad-free CTV content. (2)
• Over 78% of US households are reachable via connected TV (CTV) programmatic advertising. (3)
• Over two-thirds of all CTV ad views occur on Roku and Fire TV devices. (4)

Connected TV Advertising Statistics

• Connected TV advertising spend is expected to rise from $17.44 billion in 2022 to $27.47 billion by 2025. (+57.51% Increase) (5)
• The share of CTV advertising as a part of overall marketing spend is expected to rise from 5.5% in 2022 to 6.9% by 2025 as advertisers reallocate money from other channels. (6)
• CTV ads enjoy much higher engagement rates than traditional ads. CTV sees a 94% viewer completion rate vs. just 74% and 69% on PC and mobile devices respectively. (7)
• 60% of TV advertisers shifted budget from linear TV to connected TV (CTV) and over-the-top (OTT) platforms in 2021. (8)
• 81% of TV advertisers cite “targeting and efficiency” as the primary reason for shifting ad spend to CTV/OTT and moving away from linear / cable TV advertising. (9)

CTV Market Trends & Growth Statistics: Final Thoughts

The Connected TV statistics speak for themselves. CTV advertising is a booming business as global adoption of connected TV devices continues at an astonishing pace. It’s a rapidly evolving industry, so make sure you stay in the know so you don’t get left behind.

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