Year in Review: Our Favorite Connected TV Consumer Insights of 2022

2022 has been a big year for Connected TV (CTV)—the number of users has grown to ~225.7M and in July, CTV viewership surpassed broadcast and cable TV. While these factors bode well for the future of CTV, it’s important to remember that the technology is still relatively new and there is a lot to be learned, especially from consumers. CTV viewers not only dictate the popularity of the respective streaming services, but they also provide immense advertising opportunities for a wide variety of brands.

With 2023 weeks away, we took a look back at everything we’ve found out about consumers since launching MNTN Research in spring of 2022. Here are some of our favorite Connected TV user learnings.

Top Connected TV Consumer Insights

• The most used device to access streaming services is Smart TVs | In 2021, 132M consumers watched content through this type of device¹—this number is expected to grow to 142.7M by 2025.
• Streaming sports viewership is a growth opportunity | Fifty-three percent of adults watch or stream sporting events at least once per month². And, 49% of live sports streamers believe TV ads are an important part of their TV watching experience³.
• The number of advertisements can affect viewer attention spans | Consumers are willing to watch five or fewer ads per show⁴—six or more ads per 30 minute program can lead to viewer frustration and a decrease in attention paid to the ads, limiting ad recall⁵.
• Subscriber “churn and return” is a growing phenomenon | The “churn and return” strategy involves signing up for a service for a short period of time to watch an exclusive TV show or movie, then unsubscribing again until the next big release. Forty-seven percent of millennials and 34% of Gen Z have reported canceling a subscription service and then resubscribing within twelve months⁶.
• Most TV viewers watch with a second screen in hand (phone, tablet, laptop or otherwise) | Eighty-three percent of American TV watchers use a second device while watching TV⁷—65% of those same viewers use their secondary device to look up information and head to an advertiser’s site while they stream.
• Travel-focused consumers take action after viewing ads on CTV | Sixty-five percent of travel decision makers said that they visited an advertiser’s website after seeing an ad on CTV⁸.
• Cable TV subscribers pay for channels they don’t watch | The average U.S. consumer pays $1,600 annually for cable TV channels they aren’t using—these audiences typically have access to 190 channels but only watch 15.
• Cord-cutting is on the rise | Between 2016 and 2021, pay TV lost around 50 million adult viewers⁹—63% of those who cut the cord did so because they considered cable to be too expensive¹⁰.
• Consumers view TV as the most trustworthy ad channel | Forty-six percent of adults said that they find television advertising the most trustworthy—tied with TV was print ads¹¹.
• Older adults are using CTV in large numbers | Nearly half of U.S. adults aged 65+ are CTV users¹².
• News networks drive high travel consumer conversion rates | MNTN’s first party data found that some of the best performing streaming networks for driving travel consumer conversion rates were news channels. Not only did the news in general perform well for travel and leisure brands, but specifically local news networks.
• Connected TV and ad-supported streaming will continue to grow | Connected TV users will number around 230 million in 2023¹³—a 1.9% increase over the users added in 2022. Additionally, 71% of streamers reported that they don’t mind watching ads if they can watch their favorite shows and movies for free¹⁴.
• Remote workers have unique consumer behaviors and interests, many of which are TV-centric | Eighty-six percent¹⁵ of consumers who work from home (WFH) said that they watch TV monthly. This audience also remembers advertisements—48% reported seeing ads on TV and 39% said they recall seeing ads on video streaming services.

Conclusion

With CTV usage on the up and up, it’s vital for streaming services and advertisers alike to take note of consumer preferences and needs. Understanding Connected TV viewer behaviors is a key piece in the success of brand promotion on the channel and of the streaming services themselves. Ultimately, these consumers drive the current and future success of CTV. MNTN Research recognizes the importance of consumer insights and will continue to report on them in 2023 and beyond.