Connected TV Statistics: Unveiling Key Insights for Advertisers in 2025

Connected TV (CTV) is transforming how advertisers reach audiences. As the fastest-growing advertising channel, CTV offers unparalleled opportunities to engage with a highly segmented and active viewer base. By combining the broad reach of traditional television with the precise targeting of digital advertising, CTV is an essential tool for modern marketers.

Rise of Connected TV Usage

Connected TV usage has seen a dramatic increase in recent years, driven by the proliferation of smart TVs, streaming devices, and subscription-based video services.

• CTV Household Penetration: In the United States, over 80% of households have at least one connected TV device. This widespread adoption underscores the importance of CTV as a primary channel for reaching your target audience.
• Streaming Service Popularity: Major streaming platforms like Netflix, Hulu, and Disney+ have reported significant growth in their subscriber bases. For instance, Netflix boasts over 200 million subscribers globally, highlighting the immense audience available on CTV platforms.

Advertising Spend on Connected TV

As viewership on traditional TV declines for the younger demographic, advertisers are shifting their budgets to Connected TV (CTV), recognizing its potential for targeted and measurable advertising.

• Increased Ad Spend: Advertising spend on CTV has shown substantial growth over recent years. In 2019, the spend was $6.42 billion and it is projected to reach $29.50 billion by 2024. This reflects a significant compound annual growth rate (CAGR), with notable increases each year—47.5% in 2020, 40.6% in 2021, and 59.9% in 2022. This trend indicates that brands are prioritizing CTV in their advertising strategies to capture the growing digital audience.
• High Engagement Rates: CTV ads have been found to achieve higher engagement rates compared to traditional TV ads. Viewers are more likely to watch ads on streaming services without skipping, leading to better ad recall and brand awareness.

This shift in advertising spend highlights the importance of CTV as a primary channel for reaching a broad and engaged audience.

Who’s Watching? Understanding CTV Demographics

To craft effective CTV campaigns, understanding your audience is crucial. Recent data shows a diverse viewer base across all age groups, but younger generations, particularly millennials and Gen Z, are leading the shift. In the U.S., over 80% of households now have at least one CTV device, making it one of the most accessible platforms for advertisers.

• Young Audiences Dominate:
  Millennials and Gen Z account for the largest share of CTV viewers, with many using platforms like Roku, Amazon Fire TV, and Apple TV. To dive deeper into the evolving trends shaping TV advertising, explore TV advertising trends for 2025.
• A Growing Senior Audience:
  While younger viewers dominate, older demographics are also increasing their CTV usage, particularly for on-demand content. This presents new opportunities for advertisers to target high-income households and decision-makers.

Key Insights for Advertisers: Why CTV Matters

1. Precision Targeting
   CTV platforms offer advertisers robust targeting capabilities. Brands can now target based on viewer behaviors, preferences, and even household-level data, making ads more relevant and impactful. To learn how analytics can amplify your campaigns, visit TV advertising analytics.
2. Ad-Supported Growth
   Ad-supported streaming platforms like Hulu and Peacock are rapidly gaining popularity, giving advertisers access to cost-effective ad slots while still reaching premium audiences. This shift indicates a broader acceptance of ads in exchange for affordable or free streaming.
3. Increased Engagement
   With interactive ad formats, CTV boosts audience engagement far beyond what traditional TV can achieve. Features like clickable ads and QR codes encourage immediate action, making it easier to convert viewers into customers.

Comparing CTV and Linear TV

While traditional (linear) TV remains a staple for certain demographics, CTV is quickly outpacing it in terms of flexibility and effectiveness. Unlike linear TV, which broadcasts to a broad, untargeted audience, CTV enables data-driven campaigns that can adapt in real time. For a comprehensive understanding of how linear TV compares to CTV, check out Understanding Linear TV.

CTV Advertising Statistics to Watch

• Growing Ad Spend:
  Global ad spend on CTV is projected to surpass $25 billion by 2025, highlighting the platform’s growing importance.
• Higher Viewability Rates:
  CTV ads enjoy viewability rates of over 90%, significantly higher than mobile or desktop ads. This makes it a preferred medium for brand-building campaigns.
• ROI-Driven Performance:
  With advanced tracking and analytics, advertisers can measure campaign success with unprecedented precision. Read more about maximizing ROI in CTV campaigns at TV advertising analytics.

Case Studies and Success Stories

Case Study: Tech Giant Launches New Product via CTV

A well-known tech company used CTV advertising to launch a cutting-edge gadget aimed at tech-savvy millennials. By leveraging audience targeting based on interests and browsing behavior, they served dynamic ads to individuals most likely to respond. Through interactive ad formats encouraging direct engagement, the campaign achieved a 35% boost in brand recall and saw a 28% increase in product sales during the first quarter of the campaign.

Case Study: Family-Focused Brand Reaches Parents on CTV

A popular family-oriented brand in the consumer goods sector utilized CTV to connect with parents and households with children. By crafting relatable, family-focused content, they reached their target demographic through platforms frequented by parents. The campaign led to a 42% increase in website traffic and a 25% rise in product inquiries, showing the effectiveness of CTV for brands focused on specific family-friendly messaging.

Case Study: Streaming Platform Expands Subscription Base

A subscription-based streaming service aimed to grow its user base among young adults and sports fans. Using CTV, they launched a targeted campaign that included shoppable ad formats and clickable ads to drive direct sign-ups. This approach resulted in a 30% growth in monthly subscribers, demonstrating the power of CTV’s interactive ad features and demographic targeting capabilities.

Conclusion

Connected TV is revolutionizing the advertising landscape, offering unparalleled opportunities for brands to reach and engage their target audiences. By understanding and leveraging key CTV statistics, advertisers can create more effective and impactful campaigns. For businesses looking to harness the power of connected TV advertising, partnering with International Advertising Solutions provides the expertise and resources needed to succeed.

Learn more about our TV advertising services and how we can help you achieve your marketing goals.