In 2025, Connected TV (CTV) has solidified its position as a dominant force in the media landscape, reshaping how audiences consume content and how brands engage with them. With platforms like Roku, Hulu, and Netflix’s ad-supported tier driving unprecedented viewership, CTV offers a dynamic blend of scale, precision, and engagement. As streaming continues to eclipse traditional TV, understanding the latest CTV statistics and trends is crucial for marketers navigating this rapidly evolving space. This article explores key data points and emerging patterns, highlighting their implications for advertisers seeking to capitalize on the streaming revolution.
The Surge in CTV Adoption
CTV, which delivers content via internet-connected devices like smart TVs and streaming sticks, has seen explosive growth. In 2025, over 85% of U.S. households own at least one CTV device, up from 80% in 2023, according to industry estimates. Roku alone boasts 80 million active accounts globally, while Amazon Fire TV and Samsung Smart TV platforms each reach tens of millions. This widespread adoption reflects consumers’ shift toward on-demand, flexible viewing, with CTV accounting for nearly 45% of total TV viewing time in the U.S.
The demographic reach is broad, spanning Gen Z to baby boomers. Approximately 70% of adults aged 18–34 stream CTV content daily, but older audiences are catching up, with 55% of those over 55 engaging weekly. This diversity makes CTV a versatile channel for advertisers, offering access to varied consumer segments, from tech-savvy millennials to retirees watching local news streams.
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Viewership Patterns Driving Engagement
CTV viewership is characterized by high engagement, with users spending an average of 4 hours daily streaming content, per recent analytics. Platforms like Hulu report over 50 million subscribers, with viewers consuming a mix of on-demand shows, movies, and live events. Live content, particularly sports and concerts, is a major driver—30% of CTV viewing hours are dedicated to live programming, boosted by platforms like YouTube TV and Hulu + Live TV.
Ad-supported streaming is gaining traction. In 2025, 60% of U.S. CTV viewers use ad-supported platforms, with Hulu and Roku leading the charge. Netflix’s ad-supported tier, launched in 2022, now accounts for 15% of its global subscriber base, reflecting consumer willingness to tolerate ads for lower costs. Ad loads remain lighter than traditional TV, averaging 4–8 minutes per hour on platforms like Netflix and Hulu, compared to 12–15 minutes on cable, enhancing viewer experience and ad recall.
Advertising Spend and ROI Trends
CTV advertising spend is soaring, projected to exceed $30 billion in the U.S. alone in 2025, a 20% increase from 2024. This growth is fueled by advertisers shifting budgets from linear TV to CTV, drawn by its targeting precision and measurable outcomes. Cost-per-thousand impressions (CPM) rates vary—Hulu ranges from $20–$40, Roku from $15–$35, and Netflix’s premium tier from $50–$80, reflecting differences in audience quality and ad inventory.
Return on investment (ROI) is a key attraction. CTV campaigns deliver conversion rates of 2–5% for performance-driven ads, with cost per acquisition (CPA) averaging $30–$50 for e-commerce, according to industry benchmarks. For brand campaigns, CTV boosts awareness by 10–20%, as measured by brand lift surveys. A retailer running a Hulu campaign might achieve a 4:1 ROAS, driven by targeted ads and interactive formats like QR codes, which increase click-through rates (CTR) by 15–20%.
The Rise of Programmatic CTV Advertising
Programmatic advertising, which automates ad buying through real-time bidding, now accounts for 70% of CTV ad spend, up from 60% in 2023. Platforms like The Trade Desk and Roku’s OneView enable advertisers to target audiences with precision, reducing CPMs by 10–15% compared to manual buys. For example, a fitness brand might use programmatic CTV to serve ads to workout enthusiasts on Hulu, optimizing bids to secure slots at a $25 CPM.
Programmatic’s growth is driven by its efficiency and scalability. Advertisers can leverage first-party data from CRM systems or third-party data providers to refine targeting, ensuring ads reach high-intent viewers. However, challenges like ad fraud—estimated to affect 10% of programmatic spend—require vigilance. Tools like ads.txt and DoubleVerify help ensure inventory quality, protecting budgets and maximizing campaign effectiveness.
Interactive and Shoppable Ad Formats
Interactive ad formats are transforming CTV engagement. In 2025, 40% of CTV ad campaigns incorporate interactive elements, such as QR codes, clickable overlays, or shoppable links, up from 25% in 2023. These formats drive direct response, with QR code ads on Roku achieving CTRs of 2–3%, compared to 1% for standard video ads. A retailer’s shoppable ad on Hulu might direct viewers to a product page, reducing conversion steps and lowering CPA by 20%.
Shoppable ads are particularly effective for e-commerce, with 25% of CTV viewers making purchases via ad-driven links, per recent studies. Brands like Walmart and Amazon leverage these formats on Roku, integrating seamless checkout experiences. Production costs for interactive ads range from $20,000–$75,000, higher than standard ads ($5,000–$25,000), but the enhanced ROI justifies the investment, especially for performance-driven campaigns.
Privacy and Data Challenges
As CTV advertising grows, privacy concerns shape the landscape. Regulations like CCPA and GDPR restrict data usage, with 80% of CTV platforms relying on aggregated or contextual targeting to comply. First-party data, collected via user opt-ins on platforms like Hulu, is increasingly valuable, used in 60% of CTV campaigns for personalization. However, third-party cookie phase-outs have reduced data granularity, pushing advertisers toward privacy-safe alternatives.
Ad fraud remains a hurdle, with bots generating fake impressions costing the industry $2–$3 billion annually. Platforms are countering this with stricter verification, but advertisers must use trusted DSPs and SSPs to minimize risk. Despite these challenges, CTV’s transparency—65% of platforms provide detailed analytics like impressions and completion rates—ensures accountability, helping marketers optimize spend.
Regional and Demographic Targeting Trends
CTV’s targeting capabilities are a major draw, with 75% of campaigns using geographic or demographic segmentation. IP-based targeting allows ads to reach specific DMAs or ZIP codes, ideal for regional brands. A car dealership might target Hulu viewers within a 50-mile radius, achieving a 5% conversion rate for test drive bookings. Urban markets command higher CPMs ($30–$50) than rural ones ($15–$25), reflecting competition and audience value.
Demographic trends show CTV resonating across age groups. Gen Z and millennials, who make up 50% of CTV viewers, prefer ad-supported platforms, while 40% of viewers over 45 opt for premium subscriptions. Gender targeting is also effective, with 55% of CTV ad campaigns tailoring creative to male or female audiences, boosting engagement by 10%. These trends enable advertisers to craft hyper-relevant campaigns, aligning with viewer preferences and behaviors.
The Shift Toward Live and Event-Based Content
Live content is a growing CTV segment, with 35% of viewers streaming sports, concerts, or events weekly. Platforms like Hulu + Live TV and YouTube TV report a 25% increase in live viewership since 2023, driven by exclusive broadcasts like NFL games or music festivals. Ads during live content achieve 90% completion rates, compared to 80% for on-demand, due to real-time engagement.
Event-based advertising is surging, with 30% of CTV ad budgets allocated to live events. A brand sponsoring a Roku-streamed local festival might reach 100,000 viewers, with a $30 CPM delivering strong ROI. These opportunities, while competitive, offer unmatched visibility, particularly for brands targeting community-focused or younger audiences.
Future Trajectories for CTV Advertising
The CTV landscape is poised for continued evolution, with several trends shaping its future. AI-driven personalization is expanding, with 50% of CTV campaigns using AI to tailor ads, increasing conversion rates by 10–15%. Dynamic creative optimization (DCO) adjusts ads in real time based on viewer data, enhancing relevance. For example, a Hulu ad could shift to highlight winter gear for viewers in cold regions, boosting engagement.
Cross-device integration is another frontier, with 60% of viewers using multiple devices (TV, mobile, tablet) during CTV sessions. Advertisers are leveraging this by pairing CTV ads with mobile retargeting, reducing CPA by 15–20%. As CTV continues to grow, its role in omnichannel strategies will deepen, offering brands a powerful tool to connect with audiences in 2025 and beyond. By staying attuned to these statistics and trends, marketers can harness CTV’s potential, driving impactful campaigns in the streaming-driven future.
