Connected TV poised to gain US viewership and advertiser interest

The trend: Connected TV (CTV) is expected to pick up US viewership as consumers access ad-supported and subscription streaming services, making the space fertile ground for advertisers.

• Our report on time spent with connected devices indicates CTVs are giving smartphones a run for their money, as streaming platforms like Disney+ and media players like Roku and Amazon Fire TV vie for attention.

By the numbers:

• Daily time with connected devices–mainly CTV but also including game consoles, set top boxes such as Roku, Blu-ray players and wearables–will reach one hour and 47 minutes in 2022 and rise through 2024.
• US smartphone time is expected to come to three hours and 19 minutes this year, up 8 minutes from 2021. We predict it will increase an additional 7 minutes in 2023. Smartphones account for the majority of time spent with mobile devices.

Apps soar, browsers fade: Mobile devotees are using apps more than browsers. The popularity of games, podcasts, and social media is influencing this trend, but consumers are also using apps for activities such as shopping, dating, travel, and fitness.

Why these trends matter: The rise of CTV is increasingly drawing advertiser interest; CTV ad spending remains much less than that of traditional TV, but the gap is closing. This year, US advertisers will spend $18.89 billion on CTV, up 33.1% over 2021.

Go further: Read our report on US Time Spent with Connected Devices 2022 for more on our forecast and its implications for marketers.