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Connected TV advertising in the U.S. - statistics & facts

In the United States, three small letters have turned video consumption and the entire digital advertising landscape on their heads. CTV, or connected TV, which refers to internet-connected devices such as smart TVs, set-top boxes, and game consoles, has become one of the most impactful broadcast innovations of the past few decades because it allows viewers to access the vast digital portfolio of over-the-top (OTT) digital video content. In 2022, a whopping 92 percent of U.S. households were reachable by CTV programmatic advertising, while the number of CTV users amounted to more than 110 million among Gen Z and Millennials. As viewers rapidly switch from linear TV to streaming alternatives, advertisers are quick to embrace the potential of this digital migration.

CTV advertising spending

In 2022, CTV ad spend in the United States was expected to amount to roughly 19 billion U.S. dollars, marking an increase of 33 percent from the previous year. While this double-digit growth was already remarkable considering the pandemic-related slowdown of the advertising industry, spending on connected TV might accelerate even further in the upcoming years. According to the latest projections, expenditure will more than double and surpass 38 billion U.S. dollars by 2026. As a result, CTV will account for more than five percent of U.S. ad spend, highlighting the ever-expanding role that this new era of television has come to play in the digital advertising world.

Marketers tap into video consumption trends

Marketers are ramping up investments in CTV and OTT advertising: Some 40 percent of U.S. media buyers planned to increase spending on OTT advertising in 2021. Reach and target efficiency constituted the main reasons for shifting media budgets from linear TV to CTV and OTT. On top of that, advertising on connected TVs allows marketers to target audiences based on demographics, location, viewing history, and preferences, without being constrained by TV broadcasting schedules or ad pricing limitations. Lately, performance-related benefits of CTV advertising include achieving brand awareness and performance marketing goals - all things that are difficult to achieve with traditional TV promotion.

What are the leading CTV ad platforms?

Disney-owned streaming giant Hulu ranked as the largest CTV ad seller in the United States in 2021, with ad revenue of 3.1 billion U.S. dollars. YouTube and Roku, two other popular advertising destinations, got second and third positions, with 2.5 billion and 1.2 billion U.S. dollars in ad takings, respectively. While these three major companies collectively secured over 50 percent of CTV advertising revenues, CTV ad views were dominated by Roku, with its devices claiming almost half of the ad views triggered from CTV devices in the United States in the first half of 2021.

Consumers prefer CTV to linear ads

Regarding consumer perception, advertising on connected devices proved to be more popular than in their linear counterparts. Nearly six out of 10 connected TV users in the U.S. found CTV ads to be more relevant than ads on linear television, according to a recent survey. A similar share of respondents mentioned their preference for targeted ads to enhance their viewing experience. Around two-thirds of the users preferred to see ads and pay less for the streaming service, while four out of 10 streamers would favor ad-supported streaming content to be free of charge.

Interesting statistics

In the following 5 chapters, you will quickly find the 31 most important statistics relating to "CTV advertising in the U.S.".

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