Connected TV has grown to the point where there are 55 million U.S. households that only watch CTV, according to a new study from Magnite.
Those 55 million households mean that 40% of U.S. TV homes are reachable exclusively via CTV and not over the air or via traditional pay TV.
Los Angeles-based ad technology firm Magnite also found that CTV reaches a more balanced mix of age groups, compared to pay TV, which skews toward viewers 55 years old and up. CTV also delivers an audience as diverse as the country overall, while pay TV is overly white and underrepresents Black, Latin and Asian consumers.
Viewers don’t seem to be adopting CTV to avoid commercials. The study found that 90% of CTV viewers watch ad supported programming, with 47% of the content they see being ad-supported, compared to 53% ad free.
CTV viewers said they were twice as likely to buy a product after seeing an ad they paid attention to and 47% of CTV viewers said they were willing to share the information they find in relevant ads.
Video on social media platforms is a less-effective means of reaching consumers who also watch CTV. Only 21% of CTV users reported that they are likely to pay attention to a video ad on social media.
“CTV is now much more than just an audience extension tool or an add-on to a linear buy, because it’s clear that a large portion of TV viewers have shifted their attention in favor of CTV,” Magnite chief revenue officer, CTV, Sean Buckley said. “While traditional TV audiences have become more homogeneous, CTV viewers encompass a representative cohort of ages and backgrounds. Our goal in conducting this research is to help media owners and advertisers understand how they can use CTV to reach CTV viewers effectively, authentically and respectfully.”
