2023 & Beyond: Connected TV’s Bright Future

Growth Of Connected TV

Courtesy Jake Sheets; Jamloop

Connected TV has had a great year in 2022. Streaming platforms increased in popularity and were able to increase investments into their content libraries and advertising capabilities. Now every streaming app has the ability to become a fully measurable ad platform – giving advertisers direct access to their target audiences. And luckily for those in the CTV/OTT industry, there is no slowdown in sight as 2023 is expected to be an even bigger year for connected TV.

2022 has seen an emergence in live sport viewership on streaming platforms like Peacock and Apple TV.  With fresh TV rights agreements, major market audiences are watching their favorite teams on connected TV instead of traditional linear TV.  The MLB, NFL, NBA, and MLS are broadcasting games on streaming platforms more frequently.  Even the NHL will broadcast some its games on ESPN+ and HBO Max, as a result of its new deal with ESPN and Turner Sports.

Although linear TV remains the standard way to view content across majority of US households, CTV is beginning to lead viewership over traditional TV for the first time. We will see this growth continue into 2023. Connected TV households are expected to grow to 82% by the end of next year and traditional cable will slide as more people cut the cord.

The shift towards streaming has gained the attention of several brand advertisers and agencies. With better user experience and ad tech, OTT/CTV ad spend can double through the next few years. At its current pace, CTV ad spend is expected to grow over 25 billion USD by the end of 2025.