With Disney+ and AppleTV+ as the newest connected TV networks to hit the market in recent weeks, we were curious about the connected TV trend and how advertisers are responding. While neither Disney+ nor AppleTV+ are ad-supported formats, we found that significant growth is expected among CTV viewers as well as growth with advertisers who are turning more of their budgets towards CTV. It’s evident with “Baby Yoda” going viral most recently, that quality content is the top draw for CTV networks.  Not the ability to switch off advertising.

Here are some highlights of what we’ve found:

• CTV users in the U.S. are expected to grow to 200 million in 2020.

• While viewers are changing their viewing habits — what they watch, where they watch, and when via on-demand viewing — advertisers are following suit. And they’re following the viewers.

• In 2020, advertising on connected TV devices like Roku, AppleTV, Amazon Fire Stick, Blu-ray players, game consoles, etc. is expected to surge nearly 40% to just under $7 billion on ad-supported CTV platforms like Hulu, CBS All Access, ESPN+, and others.

• By 2021, connected TV advertising is expected to surpass $10 billion, though that’s a small portion of the more total $70 billion TV ad marketplace.

• Advertisers are also able to target users based on his/her online behaviors and serve that user with an ad via CTV, making the spend smarter and even more targeted to that user.

In particular, the discussion to buy a more programmatic approach rather than simply buying one network is more important than ever, not only with each client, but also each campaign. Good targeting and tailoring is invaluable to get to the right people, at the right time, in the right place.

Matt Rader

Media Director