The television landscape has undergone a seismic shift in recent years, with Connected TV (CTV) emerging as a powerhouse in the advertising world. As consumers increasingly move away from traditional cable subscriptions and embrace streaming services, marketers must adapt to this dynamic environment to reach engaged audiences effectively. CTV, which encompasses internet-connected devices like smart TVs, streaming sticks, and gaming consoles, offers a unique blend of traditional TV’s broad reach and digital advertising’s precision. Understanding the latest CTV statistics is critical for crafting strategies that capitalize on this rapidly growing medium. This article explores key data points and trends that every marketer should know to navigate the CTV landscape successfully.
The Surge in CTV Adoption
The rise of CTV is not a passing trend but a fundamental change in how people consume media. As of 2025, 88% of U.S. households own at least one internet-connected TV device, such as a smart TV, Roku, Amazon Fire Stick, or gaming console. This marks a significant increase from 80% in 2020 and a staggering jump from 38% in 2012. Globally, the CTV market was valued at $85.4 billion in 2024 and is projected to grow to $203.8 billion by 2034, driven by the accessibility of streaming platforms like Netflix, Hulu, and Disney+. This widespread adoption underscores the importance of CTV as a primary entertainment source, making it a must-consider channel for marketers aiming to connect with diverse audiences.
The growth in viewership is equally compelling. In 2025, U.S. adults are expected to spend an average of 2 hours and 11 minutes per day watching CTV, an 8.3% increase from the previous year. This time spent accounts for 84% of the total usage of connected devices, dwarfing other formats like mobile or desktop streaming. The shift is particularly pronounced among younger demographics, with 62.6 million Millennials and 56.1 million Gen Zers in the U.S. engaging with CTV content in 2025. However, CTV’s appeal spans generations, with nearly half of adults over 65 using CTV monthly, debunking the myth that it’s solely a young person’s medium.
Advertising Spend Shifts to CTV
The financial landscape of CTV advertising reflects its growing dominance. In 2024, U.S. CTV ad spending reached $28.79 billion, a 22.4% increase from the previous year, and projections estimate it will climb to $46.89 billion by 2029. Globally, CTV ad revenue is expected to hit $48 billion in 2025, up from $36 billion in 2023—a 33% surge in just two years. This growth is fueled by marketers reallocating budgets from traditional linear TV, which saw ad spending drop to $60.38 billion in 2023 and is expected to decline further to $54.75 billion by 2027. In contrast, CTV’s share of total TV ad revenue is projected to reach 51.5% by 2029, signaling a tipping point where streaming surpasses traditional TV.
Marketers are drawn to CTV’s efficiency and measurable outcomes. A 2023 survey revealed that 37% of U.S. marketers increased their CTV ad spend by reallocating budgets from digital TV, while 36% shifted funds from other digital or mobile video formats. Additionally, 31% of advertisers moved budgets from social media, reflecting CTV’s growing priority in omnichannel strategies. The platform’s ability to deliver targeted, non-skippable ads has made it a preferred choice, with 84% of advertisers citing better targeting capabilities than linear TV. This precision, combined with CTV’s premium inventory, has led to a 23% higher return on investment (ROI) compared to traditional TV advertising.
Viewer Engagement and Behavior
CTV’s strength lies in its ability to engage audiences in a relaxed, immersive environment. Unlike mobile or desktop screens, CTV ads appear on the largest screen in the home, commanding higher attention rates. In Q1 2024, CTV ad attention reached 51.5%, and ads boasted a 98% completion rate, meaning viewers are watching them through to the end. This high engagement translates into action, with 31% of U.S. viewers using their CTV devices to complete a purchase after seeing an ad. Furthermore, 72% of CTV viewers are more likely to engage with ads on streaming platforms than on traditional TV, highlighting their receptiveness to digital ad formats.
Consumer preferences also favor ad-supported models. Around 73% of CTV viewers prefer free, ad-supported content over paying for ad-free subscriptions, a trend that has spurred the growth of FAST (Free Ad-Supported Streaming TV) platforms like Pluto TV, Tubi, and The Roku Channel. In 2024, 111.5 million U.S. viewers accessed FAST services, and over 1,900 unique FAST channels were available, offering marketers a vast landscape for ad placements. Additionally, 70% of viewers engage in multi-screen behavior, such as browsing on a smartphone while watching CTV, enabling cross-device tracking and retargeting opportunities that enhance campaign effectiveness.
Targeting and Measurement Advantages
One of CTV’s most significant advantages is its advanced targeting capabilities. Unlike linear TV, which relies on broad demographic data tied to programming schedules, CTV allows marketers to leverage first- and third-party data to target audiences based on demographics, interests, viewing history, and purchase behavior. For example, a sports apparel brand can target viewers who frequently stream fitness content on Hulu or YouTube, ensuring ads are relevant and impactful. This precision reduces media waste and optimizes ad spend, with 65% of marketers reporting increased sales when using CTV alongside other paid channels.
Measurement is another area where CTV shines. Real-time analytics enable marketers to track key performance indicators (KPIs) like impressions, return on ad spend (ROAS), and cost per completed view. For instance, ROAS measures revenue generated relative to ad spend, providing clear insights into campaign profitability. A 2023 study found that 54% of advertisers prioritize business outcomes—such as sales, store visits, and leads—as their primary KPI for CTV campaigns, challenging the perception that CTV is solely a top-of-funnel awareness channel. Platforms like Nielsen Ad Intel now cover 95% of the U.S. CTV ad market, offering transparency into competitor spending and platform performance, further empowering data-driven decisions.
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Challenges and Opportunities
Despite its advantages, CTV advertising faces challenges that marketers must navigate. High campaign costs and cost-per-thousand impressions (CPMs) are cited as obstacles by 36% and 31% of marketers, respectively. Ad fraud is another concern, with estimates suggesting it could cost companies $100 billion globally by the end of 2024. Brand safety and reaching relevant audiences also remain top concerns, as marketers strive to ensure ads appear in appropriate contexts. However, advancements in programmatic advertising, which accounted for 90% of U.S. CTV ad transactions in 2024, are addressing these issues by automating ad buys and improving transparency through platforms like OpenX and Roku’s programmatic marketplace.
Opportunities abound for forward-thinking marketers. The rise of ad-supported tiers on major streaming platforms like Netflix, Disney+, and Max has expanded inventory, making CTV more accessible. Political advertising is also leveraging CTV, with $1.56 billion spent in the U.S. in 2024, a 506.3% increase from 2020. Additionally, the integration of CTV with omnichannel strategies—86% of marketers combine CTV with social media, 78% with display ads, and 54% with linear TV—creates seamless conversion pathways. For instance, a viewer who sees a CTV ad for a product can be retargeted on their mobile device, guiding them from awareness to purchase.
The Future of CTV in Marketing
As CTV continues to reshape the advertising landscape, its role as a performance-driven channel is undeniable. The platform’s ability to deliver personalized, high-impact ads on the big screen, coupled with robust targeting and measurement capabilities, positions it as a cornerstone of modern marketing strategies. With viewership projected to reach 200.8 million U.S. users by 2025 and ad spending expected to surpass $42 billion globally by 2028, CTV is no longer an experimental channel but a critical component of any comprehensive media plan. Marketers who embrace CTV’s potential, optimize campaigns with real-time data, and integrate with other digital channels will be well-positioned to drive meaningful results in an increasingly digital-first world.
