Michele Majidi
Researcher
Connected TV advertising in the U.S. - statistics & facts
In the United States, three small letters have turned video consumption and the entire digital advertising landscape on their heads. CTV, or connected TV, refers to internet-connected devices such as smart TVs, set-top boxes, and game consoles. It has become one of the most impactful broadcast innovations of the past few decades because it allows viewers to access the vast digital portfolio of over-the-top (OTT) digital video content. In 2023, a whopping 88 percent of U.S. households owed at least one internet-connected TV device, while the number of CTV users amounted to more than 110 million among Gen Z and Millennials. As viewers rapidly switch from linear TV to streaming alternatives, advertisers are quick to embrace the potential of this digital migration.
Nearly four out of 10 marketers planning to increase their CTV ad spend for 2024 said they were doing so by reallocating budgets from digital TV. Audience targeting capabilities constituted the main reason for shifting media budgets from linear TV to CTV and OTT. On top of that, advertising on connected TVs allows marketers to target audiences based on demographics, location, viewing history, and preferences, without being constrained by TV broadcasting schedules or ad pricing limitations. When it came to the leading challenges related to CTV, marketers cited brand safety and reaching relevant audiences.
CTV ad spending keeps rolling, marketers shift their budgets
In 2024, CTV ad spend in the U.S. was expected to surpass 30 billion U.S. dollars, marking an increase of 17 percent from the previous year. Spending on connected TV might accelerate even further in the upcoming years. According to the latest projections, expenditure will exceed 40 billion U.S. dollars by 2027. As a result, CTV will account for more than five percent of ad spend, highlighting the ever-expanding role that this new era of television has come to play in the digital advertising world.Nearly four out of 10 marketers planning to increase their CTV ad spend for 2024 said they were doing so by reallocating budgets from digital TV. Audience targeting capabilities constituted the main reason for shifting media budgets from linear TV to CTV and OTT. On top of that, advertising on connected TVs allows marketers to target audiences based on demographics, location, viewing history, and preferences, without being constrained by TV broadcasting schedules or ad pricing limitations. When it came to the leading challenges related to CTV, marketers cited brand safety and reaching relevant audiences.
