In recent years, the way people watch television has undergone a significant shift. Connected TV (CTV) has become a popular choice for consumers as it allows them to stream their favorite shows and movies on demand without the limitations of traditional TV broadcasting. This shift has also created new opportunities for advertisers to reach their target audience through CTV advertising.
30 Amazing Statistics on CTV Advertising
So just how prevalent is CTV and is this a strategy you should add to your marketing mix? Take a look at these statistics on the state of connected TV advertising in 2023.
- By 2024, it is expected that over 200 million people in the US will be using CTV, up from 180 million in 2021. (Source: eMarketer)
- CTV ad spending is projected to reach $21 billion in 2024, up from $14 billion in 2021. (Source: eMarketer)
- 86% of US households with internet access have a CTV device. (Source: Leichtman Research Group)
- CTV accounts for 31% of total video ad impressions in the US. (Source: Innovid)
- The average CTV household streams 103 hours of video content per month. (Source: Nielsen)
- 69% of CTV users stream ad-supported content. (Source: eMarketer)
- 80% of CTV viewers watch ads to completion. (Source: SpotX)
- 68% of CTV viewers prefer relevant ads over non-relevant ads. (Source: Innovid)
- The average CTV ad completion rate is 95%. (Source: Innovid)
- The average CTV ad viewability rate is 98%. (Source: Innovid)
- 87% of US marketers plan to increase their CTV ad spend in 2023. (Source: IAB)
- The most common CTV ad format is pre-roll ads, accounting for 61% of all CTV ads. (Source: Innovid)
- Connected TV ad impressions grew by 44% in 2021. (Source: SpotX)
- Programmatic CTV ad spending is projected to reach $13 billion in 2024. (Source: eMarketer)
- 47% of US households have more than one CTV device. (Source: Leichtman Research Group)
- CTV advertising is expected to account for 25% of all TV advertising by 2024. (Source: eMarketer)
- 75% of US households with annual income of $100,000 or more have a CTV device. (Source: Leichtman Research Group)
- 43% of CTV viewers say they have made a purchase after seeing an ad on CTV. (Source: Innovid)
- The average CTV ad length is 30 seconds. (Source: Innovid)
- 74% of CTV viewers have seen an ad for a product they were interested in buying. (Source: Innovid)
- 37% of CTV viewers say they have discovered a new product or brand through an ad on CTV. (Source: Innovid)
- The average CTV ad completion time is 93.4%. (Source: Innovid)
- CTV advertising is 67% more cost-effective than traditional TV advertising. (Source: MAGNA)
- The average CTV ad viewability time is 95.6%. (Source: Innovid)
- 67% of CTV viewers say that ads on CTV are less disruptive than traditional TV ads. (Source: Innovid)
- The most popular CTV streaming services are Netflix, Amazon Prime Video, and Hulu. (Source: Leichtman Research Group)
- 80% of CTV viewers say that ads on CTV are more relevant than traditional TV ads. (Source: Innovid)
- 56% of CTV viewers say they prefer personalized ads over non-personalized ads.
- 73% of CTV viewers say they have seen an ad that inspired them to take action.
- 63% of CTV viewers say they are more likely to buy a product after seeing an ad on CTV.
How to Get Started with CTV Advertising in 4 Steps
Consumers are highly open to engaging with brands via CTV and CTV advertising spend is booming. So how do you get started and what do you need to know to make your CTV strategy successful?
1. Understand Your Audience
Like with any marketing strategy, the first step in reaching consumers through CTV advertising is to understand your audience. By analyzing data on your target audience, you can create ads that are personalized and relevant to their interests.
CTV offers advanced targeting options, allowing advertisers to deliver ads to specific demographics, interests, in-market shopping indicators, and behaviors. This helps you ensure that your ad is seen by the right people at the right time.
Contact us to learn more about the Porch Group Media Network, one of the first media networks to offer CTV capabilities to connect you to in-market audiences, including movers and consumers displaying active shopping intent.
2. Create Engaging Ads
CTV ads differ from traditional TV ads because they are interactive and personalized. Advertisers can use engaging ad formats like interactive ads, shoppable ads, and 360-degree videos to keep their audience engaged. Since CTV users are streaming content, they are more likely to engage with ads that are relevant to their interests.
8 Types of CTV Ads to Choose From
Some ad types to consider include:
1. Pre-Roll Ads
Pre-roll ads are the most common type of CTV ad. They are ads that play before the video content starts. Pre-roll ads can be either skippable or non-skippable. Non-skippable ads are short and can’t be skipped, while skippable ads can be skipped after a few seconds. Pre-roll ads are perfect for brand awareness as they are shown before the content.
2. Mid-Roll Ads
Mid-roll ads are shown during the video content, usually after a certain amount of time has passed. They are effective as they don’t disrupt the viewing experience, and viewers are more likely to watch them than pre-roll ads.
3. Post-Roll Ads
Post-roll ads are shown after the video content has ended. They are less effective than pre-roll and mid-roll ads as viewers are less likely to watch them. However, they can be useful for brand recall as viewers have just finished watching the content and are more likely to remember the ad.
4. Interactive Ads
Interactive ads allow viewers to engage with the ad by clicking on it or swiping it. These ads are more engaging and can provide a better user experience. Interactive ads can be either pre-roll, mid-roll, or post-roll.
5. Display Ads
Display ads are small ads that appear on the screen while the video content is playing. These ads can be used to promote a specific product or service.
6. Overlays
Overlays are small ads that appear at the bottom of the screen. They are not as disruptive as other types of ads and can be used for brand awareness.
7. Bumper Ads
Bumper ads are short ads, usually six seconds or less, that play before or after the video content. These ads are effective as they are short and can’t be skipped. Bumper ads are perfect for brand recall.
8. Sponsored Content:
Sponsored content is when a brand sponsors a video or TV show. The brand’s logo or name is displayed at the beginning or end of the video. Sponsored content is an effective way to reach a specific audience and build brand awareness.
3. Track and Analyze Your Ad Performance
Tracking and analyzing your ad performance is essential to optimize your CTV advertising strategy. Most CTV platforms offer advanced tracking capabilities that allow advertisers to measure metrics like ad impressions, click-through rates, and conversion rates. By analyzing this data, you can identify areas for improvement and adjust your strategy accordingly.
4. Partner with a CTV Advertising Provider
Finally, partnering with a CTV advertising provider can help you streamline your CTV advertising strategy. These providers offer advanced targeting options, ad creation tools, and real-time performance tracking. By partnering with a CTV advertising provider like Porch Group Media, you can ensure that your ad reaches your target audience and delivers measurable results.
CTV Advertising Solutions
CTV advertising is a powerful tool for reaching consumers in today’s digital age. Contact us to learn how Porch Group Media can help you engage your target audience with personalized, interactive ads that deliver results.
Download the Connected TV Advertising Success Kit
Download the Connected TV Advertising Success Kit to learn how to set up your campaigns for success with the latest tips and strategies.
Resources You May Also Like:
- [Article] 5 Benefits of CTV Advertising
- [Article] CTV Advertising FAQs
- [Podcast] How to Add CTV to Your Media Mix
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