Connected TV inventory is scaling rapidly. With half of the US population (57.2%) watching connected TV in 2019, up from 51.7% in 2017, and connected TV inventory available to advertisers will proliferate to meet the viewable media demand.

Article by Ross Benes for eMarketer.

Connected TV advertising is defined as ads served to TV sets via the internet via a smart TV or another device, such as a game console, Blu-ray player or Roku.

The connected TV advertising inventory trend is clear. 

From 2016 to 2018, the share of total ad impressions that video ad platform Innovid served through connected TVs jumped from 13% to 27%. Video ad serving firm SpotX saw the share of impressions it serves through connected TVs increase from 15% in Q1 2018 to 33% in Q1 2019.

 

In a quarterly review of digital video ad impressions served by Extreme Reach to various devices across North America. They found connected TV’s impression share jumped from 15% in Q4 2017 to 44% in Q4 2018.

 

Comcast’s FreeWheel had similar findings, serving 42% of its ad impressions through connected TVs in Q4 2018, a year-over-year increase of 11%.

 

 

Even platforms that get much of their traffic from mobile are benefiting from the growth in connected TV.

YouTube, for example. Though most of its video is watched on mobile, there is an indication that the site is contributing to rising connected TV inventory. Between Q4 2016 and Q4 2018, the share of YouTube video views that occurred on TV screens in the US increased by about 6 percentage points, according to digital video studio Collab.

As supply levels rise, connected TV CPMs should decline. Already, some sources interviewed for our “Digital Display Ad Pricing StatPack” said they are seeing a slight drop in pricing. According to three US buy-side sources who anonymously shared data with us, CPMs for in-stream ads on connected TV ranged from $19.84 to $28.33 between Q4 2017 and Q4 2018 … READ MORE