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State of the Screens

Audience for Connected TV Grows

By August 21, 2018No Comments

Nearly 3/4 of all U.S. households have at least one connected-TV user.

Connected TV HH by year:

Connected TV advertising by year (% growth YoY):
2017 — $4.7B
2018 — $8.2B (↑ 74%)
3) 2019 — $13.3B (↑ 62%)
4) 2020 — $20.1B (↑ 51%)

% of TV advertising targeting advanced data:
1) Linear TV — 5%
2) Connected TV — 79%

Why does this matter? This matters because viewership for traditional TV is declining which is leading to a reduction in video ad impressions.

Quick math courtesy of Dave Morgan:
1) Total video ad impressions per year — 19T
Linear TV viewership YoY — ↓ 9%
3) The decline in video ad impressions — ≈ ↓1.9T

Where are these impressions going? A large portion is shifting to connected TV.

Minutes streamed by average Roku user:
1) 2017-Q2–151
2) 2018-Q2–163 (↑ 8%)

More #1: AT&T’s recent acquisition spree is part of a plan to dominate advertising on connected TVs and devices

More #2: How Savvy TV Content Owners Are Leaning in toConnected TV

More #3: OTT spend to propel global TV, video spend to $559BN by 2022

Michael Beach

Michael Beach is the Chief Executive Officer of Cross Screen Media, a media analytics and software company that enables marketers to plan, activate, and measure CTV and linear TV at the local level. Michael is also the founder and editor of State of the Screens, a weekly newsletter focused on video advertising that is a must-read for thought leaders in the advertising industry. He has appeared in such publications as PBS Frontline, The Wall Street Journal, The New York Times, Axios, CNBC and Bloomberg, and on NPR’s Planet Money podcast.