Connected TV has become a staple in modern entertainment, transforming how millions access video content. In the United States, penetration rates have reached unprecedented levels, with approximately 90 percent of households utilizing internet-connected TV devices at least monthly as of 2025. This figure represents a significant leap from earlier years, driven by the proliferation of smart TVs, streaming sticks, and gaming consoles that seamlessly integrate online services.
Household numbers tell a similar story of expansion. Around 117 million U.S. households now engage with connected TV platforms regularly, encompassing a broad spectrum of devices. This widespread access underscores the shift away from traditional cable subscriptions, as consumers increasingly favor flexible, on-demand options. Globally, the trend mirrors this growth, with over 1.2 billion households owning at least one smart TV, highlighting the technology’s universal appeal.
These adoption metrics reveal not just quantity but quality of engagement. Many homes possess multiple devices, averaging several per household, which facilitates shared viewing experiences and personalized content discovery.
Dominance in Daily Viewing Habits
Viewership patterns have dramatically tilted toward connected TV, eclipsing legacy formats. Streaming now commands about 46 percent of total TV time in the U.S., outpacing the combined shares of broadcast and cable television. This milestone reflects a profound change in consumer behavior, where on-demand access trumps scheduled programming.
Adults dedicate substantial daily time to these platforms, averaging over two hours on connected devices. Younger demographics lead this charge, with Gen Z and millennials showing particularly high engagement rates. For instance, penetration among those aged 25 to 54 exceeds 80 percent, while Gen Z users are projected to surpass 56 million by year’s end.
Ad-supported streaming has fueled much of this surge. Platforms offering free or lower-cost tiers in exchange for advertisements attract broad audiences, with ad-supported viewing accounting for a growing portion of total time spent. This preference for economical options has accelerated the migration from linear TV, which continues to lose ground.
Explosive Expansion in Advertising Investment
Advertisers have taken notice of connected TV’s momentum, pouring resources into the channel at record paces. U.S. spending on connected TV ads is estimated to reach around $33 billion in 2025, reflecting double-digit annual growth. Projections extend this trajectory, anticipating figures approaching $47 billion by 2028, when the channel may surpass traditional TV in ad dollars for the first time.
This investment boom stems from connected TV’s unique advantages: premium video environments combined with digital precision targeting. Completion rates often exceed 90 percent for non-skippable ads, delivering strong returns compared to other mediums. Marketers increasingly view the platform as essential, with many planning budget increases to capitalize on its scale and measurability.
Retail media networks and major streamers like YouTube, Hulu, and emerging ad-tier services from Netflix and Disney+ capture significant shares. Programmatic buying dominates, enabling efficient, data-driven campaigns that reach engaged viewers in lean-back settings.
Demographic Dynamics Driving Engagement
Connected TV appeals across generations, though nuances emerge in usage patterns. Millennials and Gen Z form the core user base, with millennial viewers nearing 63 million and Gen Z close behind. These groups prioritize ad-supported content, often opting for free tiers to access vast libraries without high subscriptions.
Older audiences, while adopting more slowly, contribute substantially to overall reach. Baby boomers and Gen X maintain loyalty to certain linear elements but increasingly incorporate streaming, broadening the platform’s demographic breadth. This inclusivity makes connected TV a versatile channel for brands targeting diverse segments, from tech-savvy youth to established households.
Regional variations add layers, with urban and suburban areas leading adoption due to robust broadband infrastructure. Voice search and multi-device households further enhance accessibility, allowing effortless navigation and concurrent use.
Emerging Platforms and Content Ecosystems
Key players shape the connected TV landscape, with Roku, Amazon Fire TV, and smart TV manufacturers like Samsung and LG holding prominent positions. YouTube stands out for massive monthly reach on large screens, while free ad-supported streaming television (FAST) services like Tubi and Pluto TV draw millions seeking cost-free entertainment.
Subscription video-on-demand giants have embraced advertising, launching tiers that expand inventory dramatically. This evolution supports varied content consumption, from live sports migrating to streams to original series and user-generated videos dominating prime slots.
The ecosystem’s fragmentation presents challenges but also opportunities, as interoperable measurement tools evolve to provide holistic insights across platforms.
Pathways to Sustained Momentum
Connected TV’s trajectory points toward continued dominance, fueled by technological advancements and shifting preferences. Enhanced interactivity, shoppable ads, and artificial intelligence-driven recommendations promise deeper engagement. As inventory grows and measurement refines, advertisers gain confidence in allocating larger shares here.
Challenges remain, including privacy considerations and inventory quality assurance, yet the platform’s ability to deliver measurable outcomes positions it favorably. With viewership entrenched and ad ecosystems maturing, connected TV solidifies its role as a primary conduit for video content and branded messages.