US advertisers will allocate nearly $7BN to connected TV in 2019 | Media Analysis | Business
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Research firm eMarketer’s first-ever estimates of connected TV ad spending has found a market that is growing rapidly as advertisers look to target audiences watching long-form, premium digital content on their living room screens.

eMarketer 12Nov2019eMarketer defines connected TV advertising as digital ads that appear on connected TV devices, which include smart TVs and TVs connected to the internet via a set-top box, game console or similar device. Formats adhering to this definition included display ads that appear on home screens and in-stream video ads that appear on connected TVs from platforms like Hulu, Roku and YouTube. It excludes advertising that is network-sold inventory from traditional linear TV and addressable TV.

The study says that interest in connected TV is high as the number of cord-cutters and cord-nevers climbs each year and fewer people watch traditional linear TV.

It forecasts that US advertisers will spend almost $7 billion in 2019 on connected TV ads, accounting for nearly 3% of US advertiser outlays. eMarketer forecasts that by 2023, advertisers will devote almost 5% of their paid media budgets to connected TV placements. That said, the PC-based ad market will likely be at the end of 2019 about three times the size of the connected TV ad market. In addition, by 2022, advertisers will spend more than half as much on connected TV as they do on PC-based digital ads.

The YouTube, Hulu and Roku are leaders in the connected TV advertising space, and eMarketer expects revenues for YouTube placements that appear on connected TVs to account for about 40% of connected TV ad spending. The analysis note that this list could shake up as at present the largest over-the-top (OTT) and SVOD players, in particular Netflix, are ad-free but this could change everything if for example the latter goes ad-supported as some have predicted.

Concluding, eMarketer cautioned that while connected TV also offers the promise of better audience targeting and measurement, there are some issues to address such as a fragmented infrastructure and a high potential for fraud.