Connected TV (CTV) has emerged as the fastest-growing ad channel tracked by EMARKETER. Its ad spend outpaced other digital ads, search, social media, and retail media in 2024.
“Two-thirds of the US population use connected TVs. In Canada, it's nine in 10 people in the population,” our analyst Bill Fisher said on an episode of “Behind the Numbers.” “This is a really, really valuable piece of advertising real estate.”
There’s a lot for marketers to learn about CTV ads, which encompass digitally sold ads showing up on screens through software like streaming services, hardware like smart TVs, streaming devices like Apple TV, or video game consoles. Here are five essential things to know.
1. The CTV advertising market is experiencing substantial growth.
- The number of companies earning over $1 billion in CTV ad revenue will quadruple between 2020 and 2026, according to our forecast.
- By 2026, nine major platforms are expected to exceed this revenue threshold, a significant increase from just two in 2020.
2. Changing viewer habits are driving this shift.
- Average CTV usage in the US is projected to nearly double from 1 hour and 22 minutes (1:22) in 2020 to 2:37 in 2026, per our forecast.
- By 2026, it's estimated that 69.9% of the US population will be CTV users.
- Advertisers are responding to these trends, with 61% planning to increase their CTV ad spend, according to an April 2024 Advertiser Perceptions and Premion study.
3. CTV advertising gives marketers a number of key advantages over linear TV.
- CTV platforms connect directly to user data, enabling precise audience segmentation based on factors like location, demographics, interests, and viewing habits.
- Real-time measurement is another benefit, providing marketers with performance data on brand awareness and impressions.
- CTV ads also boast a high video completion rate, around 98%, per 2022 data from Extreme Reach.
4. Despite its benefits, CTV advertising does have some limitations.
- Fragmentation and too many providers is a concern for marketers, with 39% of CTV/OTT advertisers citing transparency in ad placements as an issue, per the Advertiser Perceptions study.
- A lack of standardization in measurement across streaming platforms also can make it difficult for advertisers to gauge the impact of a campaign.
5. The CTV landscape is continuously evolving.
Want to learn more about CTV advertising platforms and why now is the time to explore it? Download “EMARKETER’s Field Guide to CTV Advertising Platforms.”
This was originally featured in the EMARKETER Daily newsletter. For more marketing insights, statistics, and trends, subscribe here.