New consumer research from Leichtman Research Group found that 88% of TV households in the United States have at least one Internet-connected TV device, including connected Smart TVs, stand-alone streaming devices (like Roku, Amazon Fire TV sticks or boxes, Chromecast, or Apple TV), connected video game systems, and/or connected Blu-ray players. This compares to 82% with at least one connected TV device in 2021, 74% in 2018, and 44% in 2013.
Overall, 49% of adults in US TV households watch video on a TV via a connected device daily – compared to 39% in 2021, 29% in 2018, and 6% in 2013. Moreover, according to the report, younger individuals are most likely to use connected TV devices: among all ages 18-34, 63% watch video on a TV via a connected device daily – compared to 58% of ages 35-54, and 27% of ages 55+.
This study, which is based on a survey of 1.770 TV households in the United States, also revealed that 74% of TV households have at least one connected Smart TV – up from 64% in 2021, 47% in 2018, and 13% in 2013, while 55% of all TV sets in US households are connected Smart TVs – an increase from 43% in 2021, 29% in 2018, and 7% in 2014.
At the same time, 44% of TV households only have Smart TVs for all their TV sets, and 62% of TV households have at least one stand-alone streaming device – up from 55% in 2021, 46% in 2018, and 6% in 2013. Lastly, 67% of TV households have multiple types of connected TV devices – compared to 62% in 2021, and 49% in 2018.
“Nearly half of all adults now watch video via a connected TV device daily, a significant increase from 29% five years ago, and 6% a decade ago. While Smart TVs are a key component of the connected TV category, the vast majority of connected TV users stream via multiple types of devices,” noted Bruce Leichtman, President and Principal Analyst for Leichtman Research Group.
▸ 4 CTV TRENDS TO WATCH
Connected TV (CTV) ad spend in the United States will pass US$25 billion this year and continue to grow by double digits through the end of 2027. Even with a challenging market, the format is in decent shape, according to new research from eMarketer. “CTV did not take as much of a hit as social, but it was not helped by economic uncertainty and inflation, rising interest rates, a war, and a lot of other stressors,” said eMarketer’s analyst Paul Verna.
❶ CTV is outpacing every other major ad format
CTV will outpace every other major ad format eMarketer tracks, with a growth rate of 21.2% this year. In the next four years, only retail media’s growth will surpass CTV. “You put those together and you are looking at macro trends that really focus on the collapse of the traditional funnel,” said Jack Myers, Media Ecologist and Founder of MediaVillage.
❷ CTV is buoying TV ad spend on the whole
Linear TV ad spend has its bright spots, specifically during elections and major sporting events. But overall, US linear TV ad spend is declining as CTV spend picks up. Over the next four years, US linear ad spend will decrease by US$4.48 billion while CTV will increase by US$15.81 billion. “CTV is catching up with linear TV, but a point of inflection is not likely to happen until probably toward the end of this decade,” Verna commented.
❸ CTV won over Gen Z
Linear viewership is declining by a couple of million each year, and will fall below 40 million viewers next year, according to eMarketer’s forecast. However, the generation Z’s CTV viewership is on the rise, approaching 55 million viewers next year.
❹ The CTV market is cluttered and full of opportunity
Hulu (US$3.63 billion), YouTube (US$2.89 billion), and Roku (US$2.19 billion) are the biggest players for CTV ad spend in the United States, but the market is “very dynamic,” according to Verna. “We are definitely going to see Disney+ and Netflix grow and scale up and eventually get toward the top of the ranking,” he said.