Connected TV (CTV) has become the main way people watch content. The move away from cable and broadcast TV is happening now, not in the future. Streaming leads all other forms of television viewing. This change marks a complete shift in how both audiences and advertisers approach TV. This guide by Advertising Hub, covers the latest Connected TV statistics for viewership and growth trends.
To understand the market, it’s important to look at the facts. Here are the key statistics, audience insights, and spending forecasts for 2025 and what to expect in 2026. These figures highlight how media strategies can grow and better engage audiences.
Expansion of Connected TV Households
Most households now have CTV devices, and nearly everyone can stream content on their main TV at home.
- 90% U.S. Household Penetration: Nine out of ten households in the United States own at least one internet-connected TV device. This high penetration rate makes CTV a near-universal platform for reach.
- 117 Million Households: Projections for 2025 place the number of U.S. households using CTV devices at 117 million. This total includes smart TVs, streaming devices, and gaming consoles.
- Multiple Devices: The average U.S. home contains 3.5 connected streaming devices. This shows that viewing habits are spread across many screens within a single residence.
This widespread use confirms that CTV is now a main media channel, not just an extra digital option.
All-Time High in Connected TV Adoption
The move to streaming is finished. People now spend less time on traditional TV and more time using streaming apps.
- Streaming Surpasses Linear TV: As of mid-2025, streaming accounted for 44.8% of total TV viewership. This figure exceeds the combined share of broadcast (20.1%) and cable (24.1%), which together totaled 44.2%.
- 250 Million U.S. Viewers: The United States population of CTV viewers exceeds 250 million people in 2025. This large audience confirms the platform’s ability to deliver mass reach.
- Daily Viewing Time: Average daily CTV viewing time in the U.S. is over two hours and 45 minutes per person.
Streaming is now the main way most Americans watch TV. This shift means it’s time to rethink budgets that are still focused on traditional TV.
Increase in Connected TV Advertising Investment
Advertisers are moving dollars to follow the viewers. Spending forecasts for CTV advertising continue to rise, making it one of the fastest-growing ad categories.
- $47 Billion U.S. Ad Spend: The CTV advertising market in the U.S. is projected to reach $47 billion in 2025. Other projections put the total at $33.35 billion, but all data shows strong double-digit growth.
- Programmatic Growth: Programmatic CTV ad spend is projected to reach $33 billion in 2025. This shows that automated, audience-based buying methods dominate the channel.
- Marketer Confidence: Two-thirds (66%) of marketers planned to increase their CTV budget in 2025. This high confidence reflects the channel’s proven return on investment.
Budget Shifts Favoring Connected TV Advertising
The money flowing into CTV is coming from other media types. Advertisers are reallocating funds from less measurable channels to pursue the superior targeting and performance of streaming video.
- Reallocation from Other Digital: Of the advertisers increasing their CTV ad budgets, 40 percent redirected funds from digital TV. Another 40 percent moved money from non-video digital advertisements.
- Linear TV Decline: Linear TV advertising is expected to decline by about 4% per year on a core basis. This decline is due to audience migration and the absence of one-time events like the Olympics. CTV is directly absorbing these linear budget cuts.
Advertisers are pivoting from mass, untargeted spending to precise, measurable audience buying. The ability to target households with personalized ads makes CTV the better choice.
Roku’s Leading Share in Connected TV Ad Impressions
The CTV world is split among many devices and platforms, all competing for viewers. Roku still has the biggest share of the device market.
- Roku’s Market Dominance: Roku maintains a leading position with 37% market share in North America as of Q2 2025. It remains the top platform for connected TV ad views.
- Top Competitors: Amazon Fire TV follows Roku with approximately 17% market share. Samsung Smart TVs are also strong players.
- Impact for Buyers: Roku’s large share means it controls a sizable portion of available inventory. Advertisers need a strategy that includes the Roku environment to ensure broad reach.
Greater Appeal of Connected TV Ads Compared to Linear TV
Not all ads are disliked the same way. People usually prefer ads on CTV platforms over those on traditional TV.
- Ad Preference: More than half (57%) of surveyed participants favored CTV ads over those on traditional linear TV.
- Relevance: 63% of viewers find CTV ads more relevant than linear TV ads. CTV’s data-driven targeting capabilities deliver ads viewers actually want to see.
- Performance Metrics: CTV advertising offers an average ROI that is 4.5x higher than linear TV. CTV also drives a 20% higher brand recall than mobile video ads. A 2025 report found that CTV generated ten times more conversions than linear TV, while using just 60% of the media budget.
The viewing experience is important. CTV ads play full-screen and can’t be skipped, so people pay more attention. On average, over 95% of CTV ads are watched to the end.
Growth of Ad-Supported Streaming Platforms
People want cheaper ways to watch TV, which is driving the growth of ad-supported plans and Free Ad-Supported TV (FAST) channels.
- Ad-Supported Growth: By Q1 2025, ad-supported subscriptions accounted for 57% of new subscriber additions. Nearly half of total streaming subscriptions now include ads.
- Viewer Preference: A large majority (74%) of consumers are open to watching ads if the content is free. Another 71% of younger viewers prefer ad-supported streaming services.
- FAST Adoption: FAST platforms like Tubi, Pluto TV, and The Roku Channel are popular. These services combined captured 5.7% of total TV viewing in May 2025. This is larger than any individual broadcast network.
This shift means advertisers gain access to viewers who actively choose an ad-supported experience.
Subscription Trends Across Leading Streaming Services
Major streaming services are quickly growing their ad-supported subscriber numbers. These platforms now reach huge audiences.
- Netflix Ad Tier: The Netflix ad tier has over 40 million monthly active users globally in 2025. Netflix’s ad-supported option reaches a younger audience than any U.S. broadcast or cable network.
- Disney Ad Footprint: Disney+ with Ads reaches 25 million ad-tier subscribers globally. This total includes Hulu and ESPN+.
- YouTube Dominance: YouTube on CTV is watched by over 150 million people in the U.S. monthly. YouTube captures 12.5% of all television viewing, the highest share for any single streaming platform.
The expansion of these premium ad environments offers high-quality inventory at scale.
Connected TV Viewership Demographic Insights
CTV viewers come from many backgrounds, but they are generally younger and have higher incomes than traditional TV audiences.
- Affluence: Households with an income of $75,000 or more represent 60% of CTV audiences. College graduates make up 64% of CTV viewers.
- Geographic Skew: Urban households are 1.5 times more likely to use CTV than rural ones.
- Fastest-Growing Group: Latino audiences are the fastest-growing CTV demographic in the U.S.
Rising Connected TV Popularity Among Millennials
Younger generations are the heaviest CTV users. Their viewing habits clearly signal the future of television consumption.
- Largest Audience Segment: Millennials represent the largest single segment. There are an estimated 62.6 million Millennial CTV viewers in 2025.
- Gen Z Engagement: Gen Z viewers spend an average of three hours per day on CTV. This group drives the heaviest daily engagement.
- Older Generations: CTV adoption is spreading to older groups. A 2024 survey showed 76% of Baby Boomers use CTV platforms.
Most CTV viewers are Millennials or Gen Z, and these groups have mostly left traditional TV behind. Brands wanting to reach people under 45 should focus on CTV.
Take Advantage of the Growth With Performance TV
The numbers speak for themselves. Connected TV is where audiences and ad budgets are going. It combines the wide reach of traditional TV with the targeting and measurement of digital marketing.
To succeed, advertisers need to go beyond just building brand awareness. They should work with partners who can link CTV ad exposure to real business results, like website visits, sales, and in-store visits.
- Targeting Precision: Use first-party data to reach specific, high-value households. Do not rely on broad demographics alone.
- Measurable Results: Demand real-time campaign metrics. Focus on view-through conversions and cost per unique household reach.
- Creative Focus: Test interactive ad formats. These ads can increase engagement rates by three to five times over standard video.
CTV Growth Statistics & Viewership Trends: Final Thoughts
Television has fully changed. Streaming now leads the way. Audiences are watching, ad spending is up, and the results show CTV works. Advertisers who ignore CTV will fall behind. Make Connected TV the center of your video ad strategy now.
Want to start advertising on the most effective screen in the home? Discover how Performance TV can turn your CTV ad spend into measurable customer conversions. Contact us to schedule a strategy session now.
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