Thanks to the explosion of technological innovation over the past decade, the world of advertising is always evolving. What may have worked for marketers just a few years ago could be irrelevant today, which is why it’s so important for advertising departments to stay on top of the latest trends.
In 2021, connected TV advertising is one of the best markets for a wide range of brands looking to get in front of a highly targeted audience. Connected TV is growing even as traditional TV consumption is on the decline. But what are connected TV devices? And is this type of advertising really growing to such a degree? We’ll answer that with some connected TV advertising statistics to support these claims.
What Is CTV?
Connected TV (CTV) refers to any television that has the capacity to connect to the internet. This includes smart TVs, but also refers to traditional TVs that can connect to the internet using another device, like a smartphone, Apple TV, Roku, or similar streaming service. Today’s consumers can even use gaming consoles like Xbox and PlayStation to turn their television into a connected TV.
This term is often used interchangeably with over-the-top (OTT) video service, but there are some variations between the two. While connected TV is reserved only for TVs that connect to the internet, OTT refers to any content that can be streamed via TV, tablet, smartphone, or other device.
What Is Connected TV Advertising?
Now you have a better understanding of CTV—but what is connected TV advertising?
This is one of the fastest-growing marketing methods, especially with Americans spending 26% more time streaming TV content during the COVID-19 pandemic.
Benefits of CTV Ads
CTV advertising offers brands a way to reach their target audience using CTV and OTT devices. This option is affordable, diverse, and offers niche targeting. CTV advertising can even increase the number of users who see your ad and deliver real-time metrics to help you improve your campaign.
Types of CTV Ads
There are many types of CTV ads, but some of the most common include in-stream video advertisements, pre-roll ads, and home screen ads. Here’s what you need to know about each type:
- In-stream video ads: These ads are placed intermittently throughout a TV show and are usually 15 or 30 seconds long. In-stream ads cannot be skipped and are a great way to repurpose traditional TV ads.
- Interactive pre-roll ads: Like in-stream video ads, interactive pre-roll ads are shown in the middle of a TV show. However, they also include the option for the viewer to click the ad and go to a landing page, where they can buy whatever goods or services you offer.
- Home screen ads: Home screen ads sit on the main display page of a connected TV, before the user clicks to watch a particular program. They could be a video or image and may include a specific call to action.
8 Important Connected TV Advertising Statistics
Clearly, CTV offers many benefits to advertisers looking to get in front of their target audience and boost conversions. Here are some of the most important CTV advertising statistics to note in 2021:
- 42.2 million households in America watched TV via a streaming device in 2020.
- 60.1% of Americans will be CTV users by 2022, totaling 204.1 million.
- As of 2020, more than 40% of adults are CTV consumers.
- 72% of homes with a smart TV use it to watch CTV.
- The median age of CTV audiences in the U.S. is 45 years old.
- 60% of digital buyers will move more of their traditional TV budgets to CTV in 2021.
- CTV viewers are 42% more likely to buy a product in comparison to a traditional TV viewer.
- CTV ad spend will increase 40.1% in 2021, reaching $11.36 billion.
Is CTV Advertising Right for You?
If your company is looking for new ways to reach your target audience more effectively, CTV advertising is an excellent choice. With CTV viewing and ad spending growing exponentially every year, advertisers who don’t take advantage of this trend could be outmatched by their competitors.