Comprehensive data compiled from extensive research on Connected TV advertising performance, market trends, and automotive industry adoption
Key Takeaways
- 97% of CTV advertisers agree premium video content improves ROI – The overwhelming consensus among experienced advertisers confirms CTV’s effectiveness for dealership marketing when campaigns are properly executed with strategic placement on premium content
- 90% household penetration creates massive reach – With 90% of U.S. households using internet-connected TV devices and 234 million individual CTV viewers, dealerships can achieve unprecedented audience scale
- 61% of advertisers plan to increase CTV spending by average of 21% – The automotive industry ranks among sectors increasing CTV investment, recognizing the medium’s superior targeting and measurement capabilities compared to traditional television
- Programmatic CTV reaches $27 billion in 2025 – Comprising over 84% of total CTV spend, programmatic buying enables dealers to leverage precision targeting and real-time optimization at unprecedented scale
- Interactive CTV ads deliver 10x higher engagement than desktop – The massive engagement advantage positions CTV as the most effective digital channel for automotive messaging, with interactive elements creating immediate pathways from awareness to action
Market Size & Adoption
1. CTV ad spending reached $23.6 billion in the U.S. in 2024, marking 16% year-over-year growth. The consistent double-digit growth demonstrates CTV’s staying power and advertiser confidence in the medium’s effectiveness. Automotive dealers who established early CTV programs gained competitive advantages in audience reach and cost efficiency.
2. CTV ad spending projected to reach $26.6 billion in the U.S. in 2025. The continued growth trajectory indicates expanding advertiser adoption and platform development. Early adopters in the automotive sector positioned themselves to capture audience attention before increased competition drove up costs.
3. CTV ad spending will reach $46.89 billion by 2028 in the U.S. The long-term growth projection validates CTV as a sustainable, mainstream advertising channel rather than a temporary trend. Dealerships investing in CTV capabilities build marketing infrastructure with multi-year relevance.
4. 61% of CTV/OTT advertisers plan to increase spending, with an average increase of 21%. The overwhelming majority of advertisers recognize CTV’s superior performance and are expanding their commitments accordingly. This trend creates competitive pressure for dealerships to maintain or increase their CTV investments.
5. 90% of U.S. households use internet-connected TV devices at least once per month. The high monthly usage frequency ensures consistent audience availability for automotive campaigns. Dealers can reach prospects during high-engagement viewing sessions across diverse content categories.
6. 117 million U.S. households use Connected TVs in 2025. The massive household penetration translates to billions of potential ad impressions for automotive campaigns. Scale combined with precision targeting creates optimal conditions for efficient customer acquisition.
7. 234 million individual CTV viewers in the U.S. in 2024, representing 70.5% of the total population. The individual viewer count demonstrates CTV’s ability to reach specific decision-makers rather than just households. This individual-level targeting aligns perfectly with automotive purchase decision dynamics.
8. Streaming accounted for 44.8% of total TV viewership in mid-2025, surpassing broadcast (20.1%) and cable (24.1%) combined. The historic milestone validates CTV as the dominant television viewing method. Automotive advertisers must prioritize CTV to reach the majority of television audiences.
Performance & ROI Metrics
9. 97% of CTV/OTT advertisers agree that advertising on premium video content improves ROI performance goals. The overwhelming consensus among experienced advertisers confirms CTV’s effectiveness when properly executed. Strategic placement on premium content ensures brand safety and audience quality for automotive dealers.
10. Interactive CTV ads deliver engagement up to 10 times higher than desktop and 5 times higher than mobile. The massive engagement advantage positions CTV as the most effective digital channel for automotive messaging. Interactive elements like QR codes create immediate pathways from awareness to action.
11. CTV ad attention rose to 51.5% in Q1 2024. The majority attention rate significantly outperforms other digital channels where distraction is common. High attention ensures automotive messages are processed and remembered by prospects.
12. One-third of U.S. viewers have purchased a product after seeing an ad on a connected TV. The direct purchase impact demonstrates CTV’s ability to drive measurable business results, not just awareness. For automotive dealers, this translates to showroom visits and test drives.
13. QR code spots in CTV ads grabbed 12% more attention than identical non-interactive ads. The attention boost from interactive elements creates opportunities for immediate engagement. Automotive dealers can use QR codes to drive viewers directly to specific vehicle inventory or special offers.
14. Viewers spent 71 extra seconds with interactive CTV ads compared to standard pre-rolls. The extended engagement time allows for more comprehensive automotive messaging and feature demonstration. Longer viewing creates stronger emotional connections with vehicle benefits.
15. 44% of CTV/OTT advertisers say CTV is more effective than linear TV in cost effectiveness. The majority effectiveness advantage creates compelling business cases for budget reallocation from traditional to connected television advertising for automotive dealers.
Usage & Viewing Behavior
16. U.S. adults spent an average of 2 hours and 15 minutes per day watching content on Connected TVs in 2024. The substantial daily viewing time ensures consistent audience availability for automotive campaigns. Dealers can reach prospects during relaxed, high-attention viewing sessions.
17. 86% of viewers take ad-supported tiers when offered. The overwhelming preference for ad-supported content ensures large, consistent audiences for automotive advertising. Free content models create willing, engaged audiences rather than ad-averse viewers.
18. 75% of viewers have tried ad-supported streaming in the last four years. The rapid adoption rate demonstrates changing consumer acceptance of advertising in exchange for free or reduced-cost content. This shift creates expanding audience pools for automotive advertisers.
19. 69% of CTV users prefer free, ad-supported content. The strong preference for ad-supported models ensures sustainable audience growth and engagement. Automotive advertisers benefit from audiences who actively choose ad-supported experiences.
20. 57% of ad-supported subscriptions accounted for new subscriber additions by Q1 2025. The majority of new streaming users choose ad-supported tiers, continuously expanding the automotive advertising audience. This trend ensures growing reach potential for CTV campaigns.
21. Ad-supported viewing time reached 73.6% of total time spent watching TV in Q2 2025. The dominant share of ad-supported viewing creates the largest possible audience pool for automotive advertising. Traditional TV’s declining viewership accelerates this shift toward CTV opportunities.
Programmatic & Targeting Capabilities
22. 50% of CTV/OTT advertising is expected to be purchased programmatically in 2024. The rapid programmatic adoption reflects advertiser demand for precision and efficiency. Automotive dealers leveraging programmatic buying gain competitive advantages in audience targeting.
23. Programmatic CTV ad spend more than doubled from 2022 to 2024, comprising 24% of total digital ad spending. The explosive growth validates programmatic CTV as a mainstream, high-performance channel. Early adopters in automotive gained cost advantages before market maturation.
24. Programmatic CTV ad spend projected to reach $27 billion in 2025, representing over 84% of total CTV spend. The overwhelming programmatic dominance creates opportunities for sophisticated automotive targeting strategies that traditional TV cannot match.
25. 39% of advertisers cite precision audience targeting as the top benefit of CTV advertising. The targeting advantage validates CTV’s strategic value for automotive dealers needing to reach specific demographic and behavioral segments. Precision targeting reduces wasted impressions and improves ROI.
26. 80% of advertisers see CTV advertising as an extension of their Linear TV buy. The complementary relationship validates hybrid television strategies that maximize reach and frequency. Automotive campaigns can leverage both traditional and connected television for optimal impact.
27. 74% of advertisers agree that combining Linear TV & CTV is integral to a complete TV advertising campaign strategy. The strategic integration approach maximizes audience reach while enabling precise targeting where possible. Automotive dealers can maintain broad reach while adding precision layers through CTV.
28. 83% of CTV/OTT advertisers believe that CTV’s value is greater than or equal to that of primetime TV, with 36% saying CTV is more valuable. The superior value perception validates CTV’s strategic importance for automotive marketing budgets.
29. 97% of advertisers work with more than one CTV/OTT provider, with 40% using an average of 5+ providers on a typical campaign. The fragmented ecosystem requires sophisticated management capabilities for automotive dealers to maintain consistent messaging and performance.
Automotive Industry & Platform Statistics
30. Roku holds 37% market share in North America CTV as of Q2 2025, followed by Amazon at 17%. The platform concentration creates efficient targeting opportunities for automotive advertisers focusing on dominant players. Strategic platform selection maximizes audience reach while minimizing complexity.
31. YouTube and Hulu each capture around $3.4 billion in U.S. CTV ad revenue for 2024. The substantial revenue indicates large, engaged audiences on these platforms. Automotive dealers can leverage these established platforms for broad reach and proven performance.
32. Netflix’s ad tier reached 94 million monthly global users in 2025. The massive user base creates new opportunities for automotive advertising on premium content. Early Netflix advertising adopters gained first-mover advantages in this high-quality environment.
33. 53% of respondents ranked Connected TV as the most important/valuable device for OTT advertising. The device preference validates CTV’s strategic importance over mobile and desktop OTT consumption. Big-screen viewing creates optimal conditions for automotive messaging impact.
34. More than 75% of U.S. CTV users will stream via built-in smart TV apps by 2027. The platform evolution toward integrated smart TV apps simplifies the user experience and increases viewing time. Automotive advertisers benefit from streamlined, high-engagement viewing environments.
35. 111 million monthly U.S. viewers watch FAST platforms such as Pluto TV, Tubi, and The Roku Channel. The massive free ad-supported television audience creates cost-effective opportunities for automotive advertising. FAST platforms provide premium content environments with engaged, ad-accepting audiences.
36. Brand Lift importance: 85% of advertisers consider it “very important” + “somewhat important”. The high importance rating validates CTV’s effectiveness for automotive brand building and consideration. CTV’s premium content environment creates ideal conditions for positive brand association.
37. Reach and Frequency importance: 86% of advertisers consider it important. The high importance rating demonstrates CTV’s effectiveness for building awareness through consistent messaging. Automotive campaigns benefit from CTV’s ability to deliver repeated impressions across diverse content.
38. Sales Lift importance: 84% of advertisers consider it important. The high importance rating validates CTV’s ability to drive measurable business results beyond awareness. Dealers leveraging CTV with proper attribution see direct connections between advertising and vehicle sales.
Frequently Asked Questions
How does first-party data enhance the effectiveness of CTV advertising for automotive marketers?
First-party data from CRM and DMS systems enables automotive marketers to build custom audiences and look-alike prospects for CTV campaigns, ensuring advertising dollars reach actual in-market shoppers rather than broad demographic segments. Platforms like Demand Local’s Link1Data ingest first-party data and push it to programmatic platforms like The Trade Desk, enabling VIN-level CTV campaigns that promote specific vehicles to relevant audiences. This data-driven approach reduces wasted impressions and directly connects advertising to sales results through proprietary attribution reporting. Dealers can target conquest audiences, recent service customers, or equity-positive lease maturations with specific vehicle offers tailored to their needs and preferences.
What key metrics should dealers track to measure the ROI of their CTV campaigns?
Beyond basic impressions and completion rates, dealers should track sales match-back, cost-per-lead (CPL), and vehicle-detail-page (VDP) views to measure true ROI. Proprietary attribution reporting that provides ad influence insights and purchase tracking ties CTV spend directly to revenue, with 84% of advertisers considering sales lift important for CTV campaigns. Dealers should also monitor brand lift metrics, as 85% of advertisers consider this important for building consideration. Advanced measurement should include incrementality testing to isolate CTV’s specific contribution versus other marketing channels.
Can CTV advertising help small to mid-size dealerships compete with larger auto groups?
Absolutely, as CTV’s programmatic buying model and precise targeting capabilities level the playing field for smaller dealerships. Rather than competing on broad reach like traditional TV, smaller dealers can focus on hyper-local targeting and specific vehicle promotions with budgets that fit their scale. With 61% of CTV advertisers planning to increase spending by an average of 21%, the medium has become mainstream and accessible to dealers of all sizes. Managed service providers like Demand Local offer CTV & OTT solutions that handle the technical complexity while delivering automotive-specific expertise and results at accessible price points.
How does Demand Local integrate CTV into a comprehensive omnichannel strategy for dealers?
Demand Local’s approach combines CTV with search, social, programmatic display, and DOOH to create seamless customer experiences across all digital touchpoints. The Link1Data platform serves as the central hub, ingesting first-party data and distributing it across all channels for consistent messaging and attribution. This omnichannel marketing strategy ensures that prospects who see a CTV ad for a specific vehicle will encounter relevant messaging when they search online, browse social media, or drive past digital billboards. The integrated approach maximizes impact and reinforces brand messaging throughout the customer journey, with unified reporting that shows how channels work together to drive results.
Is CTV advertising effective for promoting specific vehicle models or clearing aged inventory?
CTV is highly effective for both brand building and tactical inventory promotion, leveraging its premium content environment and high attention rates to create strong emotional connections with vehicle benefits. For aged inventory, CTV can be combined with inventory marketing solutions that automatically sync real-time inventory data to create dynamic VIN-level campaigns targeting specific buyer segments most likely to purchase. The automotive industry’s leadership in CTV adoption validates its effectiveness for both strategic and tactical marketing objectives, from building brand consideration to driving immediate showroom traffic. Dealers can dynamically adjust creative and targeting based on inventory levels, pricing changes, and competitive conditions to maximize turnover rates.
