Circana Research Highlights CTV's Higher ROAS in Ecommerce Convergence
Circana's study shows Connected TV achieving 15% higher ROAS than linear TV and 21% higher than short-form video, as 75% of U.S. households use ad-supported streaming.
Circana's latest research indicates that Connected TV (CTV) delivers 15% higher return on ad spend (ROAS) than linear TV and 21% higher than short-form video, with 75% of U.S. households now using ad-supported streaming services. This evolution positions CTV as a commerce-enabled channel that integrates discovery, storytelling, and purchasing, according to the Demand Gen Report.
CTV as a Results-Driven Platform
Circana's study reveals that CTV is shifting from a reach-focused vehicle to a full-funnel platform, enabling brands to measure market share and consumer behavior more effectively. Gen Z and Millennials are projected to drive 60% of U.S. retail sales growth in the next four years, accelerating demand for purchase-enabled TV experiences. It is widely known that younger demographics increasingly blend online and offline shopping, which this research ties to the rise of immersive TV viewing.
The Role of Retail Media Networks
Retail media networks are fostering connections between television and e-commerce by enabling targeted, purchase-based advertising across devices, as outlined in Circana's findings. Marketers require shared signals, retail media ties, and purchase-based targeting to reach audiences effectively, especially amid shifts in content consumption like live events and unified billing interfaces. According to the Demand Gen Report, this approach helps streamline discovery and basket building.
Implications for Consumer Technology Investments
Circana notes that consumers are investing in TV hardware upgrades despite economic shifts, with the average price of a 55-inch LCD TV projected at $232 in 2026, making at-home entertainment more accessible. Paul Gagnon, vice president at Circana, stated that such upgrades offer tangible value, as they compare favorably to costs like family movie outings. As a widely recognized trend, streaming's growth is reshaping advertising strategies, but specifics from this research underscore its commerce potential.
