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The Rising Dominance of Connected TV in Digital Advertising
We recently ran an analysis to better understand the percentage of time spent watching videos with Rembrand ISM (In-Scene Media) in them across different devices and we realized that more than approximately 26% of our ISM placements are seen on Connected TV (CTV). This was eye-opening as it signals even more the growth and evolution of CTV as a vehicle to reach targeted audiences, and In-Scene Media enables that to happen!
Around 75% of ISM placements are embedded in YouTube videos, and more often than ever before, YouTube is being watched on a CTV device. In the past, YouTube was confined to desktops and mobile devices, but these are no longer the case. This echoes the overall growth of CTV across the industry:
Here are some key insights on the increasing time spent by audiences watching video on connected TV (CTV) platforms and its projected growth:
- Audience Behavior and Demographics:some text
- The transition from linear TV to CTV is accelerating as viewers gravitate towards internet-connected devices.
- Millennial users (56.8 million) are already using connected TVs, and this number is projected to reach 62.6 million by 2025.
- Over one-third of respondents in every age group own a connected or smart TV, with the 35-54 age group having the highest ownership (71%).
- Time Spent on CTV Devices:some text
- Over the past four years, time spent on CTV devices has nearly doubled.
- US adults currently spend an average of 1 hour and 51 minutes daily on CTV devices like Apple TV, Roku, and Amazon Fire TV.
- In 2024, time spent with CTVs is projected to grow 8.3%, reaching 2 hours and 16 minutes per day1.
- Device Preferences:some text
- Roku remains the industry leader, but its share is plateauing due to the increasing popularity of smart TVs.
- Smart TVs are the fastest-growing CTV option, expected to be used by over 75% of US CTV users by 2027.
- Digital video ad views on connected TV accounted for 76% of all digital video ad views in the first half of 20231.
- Advertising Trends:some text
- Free, ad-supported TV (FAST) and Advertising Video-On-Demand (AVOD) services are challenging Subscription Video-On-Demand (SVOD).
- Viewers are willing to watch ads in exchange for free or reduced-cost content, making AVOD increasingly popular2.
All in all, CTV is quickly becoming the primary foundation for all video, and that absolutely includes CTV. ISM, or In-Scene Media, is a way to be embedded in CTV content in a format that continues to be unskippable and captures the attention of the audience.