In the era of hyper-connectivity, the device of choice for entertainment has shifted from traditional TV sets to connected TVs.
These smart TVs have been gaining immense popularity, with estimates holding that about 51% of all households will own one by 2026. Consumers now have the ease of streaming video-on-demand (VoD) services like Netflix, Hulu, and Amazon Prime, along with constant access to a vast library of content from the internet.
This new form of viewing trend has opened up several new opportunities for marketers to reach their targeted audience.
In this blog, we’ll dive into some current connected TV statistics — and take a look at how they’re changing the way people watch television (and interact with brands) in the digital age.
The world of digital marketing is consistently evolving, taking bold new strides each day. The rise of the internet and mobile devices has transformed the way we consume content.
But now, we have a new breed of technology that has completely revolutionized the way we watch TV — connected TV. This state-of-the-art viewing technology has opened up new possibilities for digital marketers to reach consumers in more meaningful ways than ever before.
Let’s begin by defining what connected TV is. Connected TV refers to any television that can connect to the internet or other external devices, usually via Wi-Fi. This allows viewers to access content from various providers such as Netflix, Hulu, and Amazon Prime, as well as stream live content.
According to the latest statistics, there are over 56 million connected TV users in the United States, and it has become one of the fastest-growing forms of media.
What makes connected TV so appealing to viewers is its accessibility to all kinds of content in one place. It has made traditional TV providers less relevant, and viewers have more control over what they watch. This has also opened up an entirely new world of advertising possibilities for digital marketers.
Unlike traditional TV ads, connected TV ads offer a personalized and targeted approach that can result in higher engagement and conversion rates.
Another significant benefit of connected TV is that it offers more precise data on viewer demographics and behavior. This data-driven approach enables digital marketers to deliver their ads to the intended target audience with detailed demographic and geographical data.
Advertisers can also obtain real-time data on ad performance — who viewed the ad, how long it was watched, and whether the call-to-action resulted in a conversion. This level of data-driven advertising helps brands optimize their ad campaigns and ultimately achieve better results.
According to recent reports, the number of Americans who use connected TV is on the rise and now accounts for a majority of American households. In fact, only 46.8% of households pay for traditional cable TV while 87% have at least one connected TV device (including Connected TVs as well as other devices).
While a variety of factors may contribute to this trend, including cord-cutting and the growing number of streaming services, it’s clear that CTV is gaining momentum.
As more households move to CTV devices, it’s important for marketers to understand which streaming services are most popular.
According to recent data, the top three streaming services used by CTV users are Netflix, YouTube, and Hulu, with Netflix being the most widely used.
So how are CTV devices being used in households across the country? 46% of users watch television on their devices daily, with only a smaller percentage of users using CTV for gaming or browsing the internet. Interestingly, CTV seems to be most popular with families, with users reporting that they often watch content with others in their household.
In the world of marketing, understanding your audience is key to success. With the rise of connected TV (CTV), it’s important to know exactly who is watching and how to effectively market to them.
It should come as no surprise that millennials are one of the prime demographics watching CTV. Essentially, anyone born between 1981 and 1996 falls under this category. Millennials tend to gravitate toward CTV because of its convenience and flexibility. They are also more likely to use streaming services like Netflix and Hulu than cable television. To market to this group, advertisers should focus on using visual-heavy content that emphasizes a relatable tone.
Born between 1961 and 1980, Generation X also makes up a significant portion of CTV viewership. Gen-Xers tend to use CTV to catch up on their favorite TV shows or movies at their own pace. They also appreciate content that speaks to their interests and lifestyle. To market to Gen X, focus on using a more personal tone, as well as making use of intertwining humor which they tend to appreciate.
Many retired boomers now consider CTV as a form of inexpensive entertainment they can enjoy from the comfort of their own homes. To market to this group, use straightforward ads showcasing the benefits of CTV like cost savings, flexible advertising options, larger screens and exceptional resolution.
Finally, there’s Generation Z — unsurprisingly, one of the quickest demographics to adopt CTV. This group is comprised of people born between 1997 and present. They are the youngest demographic consumers and quickly becoming one of the biggest consumers of CTV.
Generation Z tends to use CTV mostly to watch live-streaming events and catch up on their favorite shows and movies. They appreciate a more interactive and immersive experience while watching TV. To effectively market to this group, focus on creating experiences such as live Q&A events and providing a variety of interactive content like winning games, quiz shows, and video commentary sessions.
The wide use of connected TV opens up an entirely new world of digital viewing trends and opportunities for marketers. With more households using connected TV devices each year, the chances of reaching out to potential customers will dramatically increase.
As we know, connected TV advertising offers benefits like advanced targeting, measurable metrics, and real-time insights for an advertiser, so it’s no surprise that more and more advertisers turn to this platform.
With all devices poised to gain even more users in the future, marketers should seriously consider connected TV advertising as an essential part of their marketing strategy. Get started today!