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DECEMBER 2022
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What’s Behind Connected TV’s
$21 Billion Ad Spending Boom?
US households that don’t pay for linear TV will outnumber those that do in 2023. Streaming
services like Hulu, YouTube, and Roku are experiencing more ad growth than ever. And now, Netflix
and Disney+ are getting in on the act. In this infographic, we look at the rapidly growing connected
TV (CTV) space and what’s fueling this $21 billion ad spending boom.
Streaming video races ahead
$105.71
as linear TV looks on $98.99
$95.31
$88.79 $89.34
$82.86 $43.59
$21.16 $31.77 $37.45
$72.69 $17. 2 0$26.92
The big picture$10.93
The ad spending gap
$67.6 3
between CTV and linear TV $61.76 $65.66 $62.42 $63.54 $61.44 $62.12
continues to close as more
Americans choose to stream
video content on their smart
TV sets. 2020 2021 2022 2023 2024 2025 2026
Combined US Linear and Conected TV Ad Spending CTV Linear TV
billions, 2020-2026, eMarketer, October 2022
What we expect
By 2024, we anticipate
advertisers will spend $31.77
billion on CTV, compared to
$63.54 billion on linear TV. 2024
CTV ad spend will be 50% the CTVLinear TV
$31.77B $63.54B
size of linear TV ad spending
by the end of 2024.
Did you know? - What’s the Difference Between CTV and Linear TV?
CTV is video watched only on a TV screen connected to the Linear TV is traditional TV programming
internet or through an external device, like a gaming console or distributed through cable, satellite, or
set-top box. Examples include Apple TV, Google Chromecast, and broadcast networks; includes video-
Roku. CTV can feature OTT video and streaming video content on-demand.
that bypasses linear TV distribution.
Made possible by
Page 1 Copyright (c) 2022, Insider Intelligence Inc. All rights reserved.Yesterday’s moderate viewers
are today’s heavy streamers
The big picture
2020 71.2% 209.5
Today, about 225.7 million Americans2021 73.3%218.3
watch video content via CTV, and that
number is growing. On the other hand, 202275.0%225.7
linear TV viewership is losing airtime fans.
202375.7%230.0
What we expect
202476.2% 234.1
Since two-thirds of Americans are already
202576.8% 238.3
CTV users, CTV viewership growth will begin
to slow down. But those who are streaming20267 7. 3%242.3
are spending more time doing it.
US Connected TV Users and Penetration
CTV by the numbersmillions, % of internet users, 2020-2026, eMarketer, September 2022
Millennials continue to be the top generation viewing
video on CTV at 62.6 million in 2023. Gen X and Gen Z
are closely behind. But digitally native Gen Zers look at TV
diferently compared to the generations before them. They
are on other devices while streaming, and expect more
62.6
personalized ads and programming. 61.6
52.0 52.1 52.7
50.3
35.6 35.2
2022 2023 2022 2023 2022 2023 2022 2023
Baby boomers Gen XMillennials Gen Z
US CTV Users, by Generation
millions, 2022-2023, eMarketer, September 2022
Did you know? - OTT Video
OTT video is streaming video content that appears on any app
or website over the internet and bypasses linear distribution.
OTT video is delivered independently of a linear pay TV service,
regardless of device. Popular platforms—including HBO Max,
Hulu, Netfix, and YouTube—feature OTT video.
Made possible by Copyright (c) 2022, Insider Intelligence Inc. All rights reserved.CTV by the numbers cont.
47.6%
12.9%
12.8%
Nearly two-thirds of CTV
53.1%viewers use a smart TV. The
most popular CTV operating
system is Roku, used by just
over half of CTV viewers.
US CTV Users, by Device
% of CTV viewers, 2023, eMarketer, September 2022
For the frst time, households Linear TVCord-Cutters
that don’t pay for linear TV and -Nevers
will outnumber those that do
in 2023.62.8 68.7
47. 8% 52.3%
US Connected TV Users and Penetration
millions, % of households, 2023, eMarketer, September 2022
The video ad race is on
CTV is rapidly catching up with linear TV in ad spending.
In 2019, we estimated CTV ad spending to be about
10% the size of linear TV. By the end of 2024, CTV will
be exactly half the size of linear TV ad spend.
Did you know? - Roku
2024
2019
10%50%
Not only does Roku have a foothold in the CTV
space as the most popular operating system,
but it’s also in the free ad-supported streaming
space as well with The Roku Channel.
Made possible by Copyright (c) 2022, Insider Intelligence Inc. All rights reserved. People are spending more time streaming
8
7
6
30
31
32
11
10 11
32
33
34
21
23
25
2021 2022 2023
US Average Time Spent per Day With Subscription OTT Video, by Platform
minutes, 2021-2023, eMarketer, April 2022
Radio $0. 27, 2.8%
Political windfall
Digital $1.44, 14.9%
CTV will account for 14.9%—or $1.44 billion—of all
political ad spend this year, according to AdImpact. The
percentage of spending fowing to CTV this past fall is
expected to get a further bump as target audiences
broaden and budgets grow.CTV $1.44, 14.9%
Did you know? - What Is AVOD? Cable $1.54, 15.9% Broadcast
$4.98, 51.5%
Ad-supported video-on-demand
(AVOD) includes platforms that charge
a subscription fee in addition to serving US General Election Political Ad Spending, by Media
ads, like Hulu and Paramount+. It also billions, % of total, 2022, AdImpact, August 2022
includes free ad-supported services
like The Roku Channel, Tubi, and Pluto
TV. AVOD excludes platforms like
YouTube that rely heavily on user-
generated content.
Made possible by Copyright (c) 2022, Insider Intelligence Inc. All rights reserved.Streaming services are cashing in,
and newcomers like Netfix and Disney+
are greenlighting ads
The big picture $3.72, 13.8%
Roku, YouTube, and Hulu’s CTV ad
revenue continue to grow, but their
share has shrunk as the market
expanded rapidly over the past year $3.16, 11.7%
with more services adopting ad
47.7%
strategies.
Other 2023
$2.56, 9.5%
US CTV Ad Spending Share and Revenues, by Company
billions, % of total CTV ad spending, 2023,
eMarketer, October 2022
$1.10, 4.1%
$0.84, 3.1%
$0.40, 1.5%
$0.80, 3.0%
$0.67, 2.5% $0.74, 2.7%
The new kid on the block: Netfix
Advertising newcomer Netfix is expected to reach
$666.5 million in 2023 and $823.1 million in
2024. The service will account for over 2.5% of US
CTV ad spending over the next two years.
Netfix OTT Ad Revenues Netfix CTV Ad Revenues
(Streaming on any app, website, device, see pg. 2)(Streaming on a smart TV screen, see pg. 1)
20232024 20232024
$0.83B $1.02B $666.5M $823.1M
US Netfix OTT and CTV Ad Revenues
2023-2024, eMarketer, October 2022
Made possible by Copyright (c) 2022, Insider Intelligence Inc. All rights reserved.