Key Takeaways:
- Circana’s research shows Connected TV (CTV) is evolving into a commerce-enabled channel, delivering 15% higher ROAS than linear TV and 21% higher than short-form video.
- With 75% of U.S. households using ad-supported streaming, marketers need shared signals, retail media ties, and purchase-based targeting to connect TV and e-commerce.
With the viewers habit of consumers changing, television is entering a next act as a commerce-enabled growth channel. New research from Circana reveals that with 75% of U.S. households now subscribing to ad-supported streaming services, brands have the ability integrate discovery, storytelling, and purchasing into a single experience is transforming.
The top line finding in The Future of TV: Where Immersion Meets Commerce is that Connected TV (CTV) now drives 15% higher return on ad spend (ROAS) than linear TV and 21% higher than short-form video, signaling TV’s movement from a reach vehicle into a full-funnel, results-driven platform. Circana’s predictive analytics and technology measures market share, understand the underlying consumer behavior driving it, and accelerate growth for their clients.
The shift is significant as Gen Z and Millennials are projected to drive 60% of U.S. retail sales growth in the next four years, fast-tracking demand for immersive, purchase-enabled TV experiences that meet consumers wherever— and however— they watch.
What is Key in Reaching Targeted Audiences
Against this backdrop, the acceleration of retail media networks is enabling cohesion and connection between television and e-commerce, streamlining relevant discovery and basket building across screens. Targeted, purchase-based advertising is now a critical component of reaching audiences effectively across connected devices.
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Cara Pratt, president of Global Retail and Media at Circana, emphasizes the importance of collaboration and strategic partnerships in this new era. “The consumer journey crosses multiple platforms, retailers, and environments,” said Pratt in a statement. “Progress depends on shared signals, shared measurement, and shared understanding.”
How TV Delivers Value for Consumers
The study reveals critical shifts in content consumption, particularly among younger demographics who seamlessly toggle between screens to consume live events. The key viewership areas to pay attention to moving forward will be sports, news, and programming ingest. Additionally, carriage deals allowing subscription video on demand programming to be watched within core channel guides will appeal to viewers seeking a unified billing and user interface experience.
This immersive ecosystem is heavily supported by consumer investments in television hardware. Even amid economic shifts, audiences are seeking value-driven upgrades that enhance their at-home viewing and shopping capabilities.
“At the end of the day, upgrading your TV delivers real, tangible value for consumers who are spending more time watching at home,” said Paul Gagnon, vice president and industry advisor for Consumer Technology at Circana. “Two trips to the movie theater for a family of four will likely cost an upwards of $200. By comparison, the average price of a 55‑inch LCD TV in 2026 is $232, putting a long‑term at‑home entertainment upgrade within reach for the cost of a couple nights out.”
For the full report, click here to download the Future of TV.
