Connected TV (CTV) and streaming are now integral to how audiences consume content and how marketers build media strategies. A decade ago, streaming was a small, subscription-based slice of TV viewing. Today, it commands a significant share. As of March 2025, streaming accounted for 43.8% of all US TV time, up ten percentage points in two years. This growth coincided with a rise in ad-supported video-on-demand (AVOD). With consumers facing subscription fatigue and seeking affordable entertainment, many are opting for platforms that offer free content in exchange for ads. Nielsen’s Ad Supported Gauge shows that 72.4% of US TV viewing time is ad-supported, and streaming makes up 42.4% of that total.
Marketers are responding. According to Nielsen’s “2025 Annual Marketing Report,” 56% of global marketers plan to increase their OTT and CTV spending in 2025, up from 53% in 2024. This makes CTV one of the few digital channels with growing investment year-over-year, especially in the Americas.
CTV’s appeal lies in more than audience size. Its targeting capabilities allow marketers to reach specific demographic segments based on viewing behavior and interests. This ability to fine-tune ad delivery can lead to better budget efficiency and stronger returns. Investment plans vary across industries. Automotive and travel and tourism brands report the highest intent to increase CTV spend, followed by healthcare and pharmaceuticals and financial services. The retail sector showed fewer marketers planning increases, likely due to substantial existing investment.
As more advertisers embrace CTV, the boundary between linear and streaming TV is dissolving. Audiences move fluidly between broadcast and digital platforms, so marketers must approach TV as a converged media environment. Yet only 32% of global marketers measure their media spending across linear and digital channels. This is a decline from last year, and highlights a challenge, particularly in Latin America (29%) and Europe (23%).
To help marketers better understand where and how ad dollars are being spent, Nielsen has expanded Ad Intel coverage to include 20 individual platforms, capturing 95% of the US CTV ad market. This transparency enables brands to analyze competitor strategies, assess platform performance, and make smarter investment decisions. Early data shows that in Q1 2025, several consumer packaged goods and retail categories are already outspending on CTV compared to linear TV.
The rapid growth of CTV presents both an opportunity and a challenge. To succeed, marketers must move beyond isolated platform strategies and embrace a unified view of their media mix. As CTV evolves as a powerful channel for both reach and performance, accurate measurement, integrated planning, and alignment with business objectives will be critical.
For more insights into the evolving marketing landscape, download Nielsen’s “2025 Annual Marketing Report.”