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PMG Digital Made for Humans

Connected TV Breaches Mainstream

4 MINUTE READ | January 13, 2017

Connected TV Breaches Mainstream

Ask Millennials about their television habits, and you’ll likely hear about television experiences via a form of connected TV vs. traditional options. That’s perhaps not shocking. As the year ticks on, projections for connected TV continue to grow, and we have some thoughts on why to consider media within connected TVs.


In 2014, 46% of US households were leveraging Connected TV.  Today, connected TV (CTV) is represented in 64% of households, with 89 million being CTV users, representing 56% of the US population, 73% of US households, and 68% of internet users.  By 2020, 98 million households will be CTV users.


From an advertiser standpoint, consumer migration to connected TV offers marketers unique advertising opportunities and rich targeting capabilities through addressable TV segments.  That being said, as we enter a new year, the prediction holds true – connected TV is not yet in a position to kill linear TV advertising. It simply doesn’t have the scale yet to tip the market. However, more and more advertisers are tuned in (pun intended) to its progress and consumers are adopting the technologies at a rapid pace. Connected TV extends the benefits that online video brings advertisers – most notably, the ability to provide data on behavior, with rich targeting capabilities that range from specific individualized information on demos to behavioral and purchasing insights.  And, while connected TV does not yet have the scale and reach of online video or linear TV, the segments of connected TV that allow for addressable and targeted opportunities are pushing advertisers to consider it as a very viable advertising option. 


Who is using Connected TV?

  • Male to Female Ratio:: 58% to 42%

  • Average Age:: 34

  • 38% College Graduates | $135K HHI | 65% Have Children

Source: Experian Marketing Services, “The Internet of Things: Opportunities Through the Rise in Smart Devices,” Nov 21, 2014

What are they consuming?

  • Nearly half of CTV viewers watch content that is an hour or longer.

    • :30 – :59 minutes :: 25% of viewers on CTV; 16% on Computers and Tablets.

    • :60+ minutes:: 46% of viewers on CTV; 18% on Computers and Tablets.

Completion Rates

  • 95% Gaming Consoles | 97% Smart TVs | 97%  Streaming Devices | 95% Other

Source: TubeMogul Platform, January 2014 – March 2015


Advertisers are looking to offer the engaged viewer additional brand exposure with long-form assets and interactive units, across all devices. The beauty of CTV targeting is the ability to filter against sets of contextually relevant apps such as Netflix, HBO Now, Hulu, Watch ESPN, etc. to ensure brands are reaching the right audience at the time of peak interest.  Additionally, CTV also refers to devices that utilize a television to display and can connect/access the Internet via other devices such as Apple TV, Amazon Fire, PS4, Xbox, etc.

Creative opportunities are dense, with technology partners offering more and more:

100% PreRoll to collect the view.

Click-to-App.  It is a first impression unit that clicks to a branded app. If the app is already installed on the CTV platform, it will launch the app. Otherwise, users will be taken to the app store to download.

Click-to-Browser on Connected TV is a First Impression Unit that allows users to click-through to a website. This ad experience allows for interactivity on the big screen and drives deeper brand engagement.

Microsite experiences can also be built.  A first impression unit clicks to a fully branded microsite with a variety of content including images, videos, promotions, etc.

The challenge for any brand is to retain the high-quality standards set by a TV commercial and not create commoditized communications just for the sake of feeding new channels.

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Television has an enormous scale and reach, but its ability to produce entertaining and informative commercials and content is something advertisers investing in other media can and should recreate.

Posted by Natalee Geldert

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