17 Connected TV Advertising Statistics to Guide Your Strategy in 2023

Apr 13, 2023
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Read this list of connected tv advertising statistics to learn how and why marketers increasingly incorporate CTV ads to boost performance metrics.

CTV ads continue to gain popularity among advertisers

The experience of watching TV has evolved immensely over the last several years. Linear TV continues to lose ground to its more forward-thinking cousin, connected TV (CTV), and advertisers are taking note. As CTV audiences have grown, so too has ad spending on CTV. In fact, it’s outpaced predictions of growth and is now projected to surpass $43.59 billion in total spend value by 2026.

We can see this paradigm shift in advertising by examining the wealth of connected TV advertising statistics, and we’ve collected the most important data points to share with you. Armed with this info, you’ll be better positioned to plan your ad strategy in 2023.

Want to dig even deeper into OTT, CTV, and linear TV advertising? Check out The Big List of TV Viewership Statistics [Updated for 2023].

How Much Do Advertisers Spend on CTV Ads?

Each year since at least 2020, connected TV advertising statistics have shown an increase in the medium’s share of overall ad spend. Here are some key details:

  • CTV ad spending totaled $21.16 billion in 2022 and accounted for 6.1% of all media ad spending. (InsiderIntelligence)
  • CTV ad spend is predicted to account for 16.5% of all US display ad spending in 2023. (InsiderIntelligence)
  • CTV ad spending increased by 23% from 2021 to 2022 (InsiderIntelligence) and is expected to grow 14-27% in 2023. (InsiderIntelligence, Digiday)
  • Hulu was the leading individual CTV advertising platform in the US in 2020, with ad revenue of $3.1 billion. Hot on Hulu’s heels is YouTube with $2.5B in 2020 CTV ad spend, and Roku rounds out the top three ($1.2B). (Statista)
  • 70% of CTV ads are purchased directly from streaming ad sellers through standard insertion orders, while 30% were purchased programmatically through third parties like demand-side platforms. (Digiday)
  • 86% of retail marketers planned to increase their CTV budgets from 2022 to 2023. (Digiday)
  • The average CTV ad budget increase in 2023 was 22%. (AdAge)
  • Many CTV media sales organizations require $20,000-$50,000 minimum spends (AdExchanger), but tvScientific has no minimum spend.

All in all, CTV advertising has grown significantly over the past few years. Why are advertisers investing more and more in CTV? Because connected TV advertising offers improved targeting, measuring, and attribution capabilities, allowing for higher conversion rates and enabling ambitious brand awareness and performance goals. Read our free guide to learn how to achieve success on CTV.

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How Effective is CTV Advertising?

Advertisers’ opinions of CTV efficacy have only improved over time as the amount of available data grows. So far, advertisers see awareness and performance marketing as CTV’s great strengths.

  • 38% of advertisers say the achievement of brand awareness and performance marketing goals were the main performance- and pricing-related benefits of CTV and OTT advertising. (Statista)
  • 30% of advertisers said the same about detailed reporting, measurement, and insights. (Statista)
  • Standard pre-roll CTV ads see a 94% viewer completion rate vs. 74% on PC and 69% on mobile devices. (Statista)
  • 81% of TV advertisers cite "targeting and efficiency" as the primary reason for shifting ad spend to CTV/OTT and away from linear/cable TV advertising. (Statista)
  • 30% of advertisers call out affordable TV ad options for performance-driven digital markets as a leading benefit of CTV/OTT marketing. (Statista)
  • 55% of advertisers believe CTV ads are as effective at driving return on ad spending as linear TV; 36% say it's more effective. (Strategus)
  • 23% of CTV viewers made a purchase after seeing an ad (Digiday) as opposed to linear TV’s 12%. (Magnite)
  • Advertisers saw 22% stronger conversion rates for paid search and 9% stronger conversion rates for paid social after launching a CTV campaign. (Digiday)

Not only is connected TV advertising here to stay, all data points to continued growth in the coming years. Its advanced targeting and performance metrics make it an excellent choice for advertisers looking for maximum efficiency in spending. If you’re ready to bring those tools to bear in your advertising strategy, tvScientific is ready to help. No matter the size of your business, our platform can outfit you with the right spend. Contact us today to learn more.