In a world where screen time is currency and attention spans are gold, Connected Television (CTV) has emerged as one of the most powerful tools in a marketer’s arsenal. Once a niche alternative to traditional linear TV, CTV is now the main stage for content consumption—and one of the fastest-growing ad channels in the U.S.

If your brand isn’t investing in CTV, consider this your wake-up call.

From Alternative to Essential

With 88% of U.S. households owning at least one internet-connected TV device, CTV is no longer a fringe platform—it’s the dominant way Americans watch television. Whether it’s live sports, on-demand shows, or binge-worthy documentaries, audiences are increasingly tuning in via smart TVs, streaming devices like Roku and Apple TV, or gaming consoles such as Xbox and PlayStation. Today, more than 238 million people in the U.S. stream content through CTV. That’s over two-thirds of the population—and marketers are taking notice.

CTV: A Rapidly Rising Channel

CTV now accounts for over one-third of total TV usage and nearly 1 in every 10 dollars spent on digital advertising. This growth is the result of shifting viewer habits, ongoing cord-cutting, and better targeting capabilities than traditional television.

Even as audiences returned to normal routines post-pandemic, Americans continued consuming more streaming content. In 2024, the average adult watched over 2 hours of CTV per day, contributing to a nearly 400% increase in CTV ad spend since 2019.

Why Advertisers Are Leaning In

CTV isn’t just about reach—it’s about results. Here’s why it’s proving irresistible for modern marketers:

• Advanced Targeting: CTV campaigns allow advertisers to zero in on audience segments using real behavioral, demographic, or geographic data.
• Engaged Viewers: Ad attention on CTV continues to outperform other digital formats.
• Measurable Outcomes: Marketers report increased sales and stronger ROI when CTV is part of a larger media mix.
• Actionable Screens: A significant portion of viewers have made purchases directly from their CTV device after seeing an ad.

With dynamic creative, real-time optimization, and seamless integrations into omnichannel strategies, CTV provides a level of flexibility that linear simply can’t match.

The Boom of Ad-Supported Streaming

Cost-conscious consumers are fueling the growth of ad-supported streaming, with 75% of U.S. homes now subscribed to at least one such platform. Whether it’s a free service like Pluto TV or a lower-cost ad tier from a major platform like Disney+ or Max, viewers are increasingly open to ads if it means access to more content.

In the first half of 2025, more than half of new streaming subscribers chose ad-supported plans. This trend opens the door to increased inventory and new audiences for brands ready to show up in-stream with compelling creative.

Generational Trends: Who’s Watching?

CTV is especially popular among Millennials and Gen Z, making it a crucial channel for brands targeting younger, digitally native consumers. This year, over 62 million Millennials and 56 million members of Gen Z in the U.S. are active CTV users.

Among teens, the penetration is even higher, with more than 80% of 13–18-year-olds streaming content through a connected TV device. Meanwhile, adoption among Baby Boomers continues to lag, reinforcing the case for reallocating media spend based on audience behavior.

What’s Next in CTV?

Smart TVs Take the Lead

Smart TVs have emerged as the preferred device for CTV consumption. With built-in streaming capabilities, they offer convenience and higher adoption rates across households. That trend continues to gain momentum in 2025.

Smaller Ad Loads, Bigger Opportunities

Advertisers may find themselves paying more for fewer spots due to a shift toward shorter, more intentional ad breaks. But with stronger targeting and interactivity, each impression carries more weight.

Strategic Growth, Not Just Scale

After several years of hypergrowth, the CTV space is maturing. While adoption remains strong, advertisers are now focusing on quality of engagement, creative differentiation, and full-funnel impact.

TARA Media’s Perspective

At TARA Media, we help brands meet audiences where they are—and increasingly, they’re on CTV. Our in-house media and creative teams work hand-in-hand to build campaigns that are not just viewable, but memorable.

With a full suite of digital tools, we offer:

• Precise audience targeting
• Optimized cross-channel performance
• Data-driven creative development
• Transparent, real-time measurement

Ready to put your message in front of today’s streaming-first audience?

📩 Let’s chat about CTV and how it fits into your broader media strategy.