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Connected TV Advertising: The Complete 2025 Guide

The CMO leaned back in her chair and smiled. "So you're telling me I can run TV ads that actually tell me if they worked?"

It was 2019, and I was pitching connected TV advertising to a brand that had spent $40 million on linear TV the previous year. They had no idea which half was wasted—the old advertising joke made literal. Brand studies. Correlation guesses. Nielsen panels. That was their measurement.

I showed her a dashboard from our first CTV test. Impressions by household. Completion rates by demo. Conversion tracking to their app and website. Attribution down to the individual creative.

She bought in that day. Within a year, they'd shifted 30% of their TV budget to CTV. Within two years, it was 60%. The results weren't just measurable—they were better.

That was the beginning of my obsession with the channel that's quietly revolutionizing advertising.

87%
US households with CTV
$30B
CTV ad spend 2025
97%
Video completion rate
2.5x
Higher recall vs linear

The Revolution Hiding in Your Living Room

Connected TV is any television that streams digital content over the internet. Smart TVs. Roku. Amazon Fire TV. Apple TV. Your PlayStation. That's CTV. And it's fundamentally different from the television advertising that came before.

For decades, TV advertising was a blunt instrument. You bought demographic estimates and hoped the right people were watching. You couldn't target individuals. You couldn't measure conversions. You couldn't optimize in real-time.

CTV changes all of that.

What Makes CTV Different

I often explain CTV as television with a digital brain. You get the premium, full-screen, lean-back viewing experience of TV. But you also get targeting, measurement, and optimization capabilities that TV buyers never dreamed of.

The Advantages That Matter

The Terminology Matters

CTV is the device—the connected television. OTT (Over-The-Top) is the delivery method—streaming over the internet. Linear TV is traditional broadcast and cable. When we talk about CTV advertising, we mean reaching viewers watching streaming content on connected television devices. The distinction matters because the buying and measurement mechanics are entirely different.

How to Buy CTV

Unlike linear TV's upfront/scatter model, CTV offers multiple buying approaches. I've used all of them, and each has its place.

Programmatic CTV

Buy inventory through DSPs in real-time auctions. This is where I spend most of my CTV budget now. Flexibility to optimize daily. Precise targeting. Scale across publishers without individual negotiations. It's how digital buying should work—applied to TV.

Direct/Guaranteed Deals

Negotiate directly with streaming platforms for guaranteed placements. I use this for tentpole campaigns where I need premium positioning and rate predictability. More expensive, less flexible, but sometimes the placement matters enough to pay for it.

Publisher Direct

Work directly with content publishers like Hulu, Peacock, or Paramount+ for exclusive placements and custom integrations. The white-glove treatment. Custom opportunities. Also the most manual and least scalable.

Targeting That Actually Works

This is where CTV gets exciting. Effective campaigns layer multiple targeting strategies:

  1. Demographic targeting: Age, gender, household income, presence of children—the basics, but now actually accurate
  2. Geographic targeting: From national down to ZIP code—test markets, local campaigns, regional strategies
  3. Behavioral targeting: In-market signals, purchase intent, lifestyle interests—people actively considering your category
  4. Contextual targeting: Genre, content rating, show type—be where your audience's mindset aligns with your message
  5. First-party data: CRM matching, retargeting existing customers, lookalike audiences from your best users
  6. ACR data: Automatic Content Recognition tells you what people actually watch—target based on viewing behavior
"I remember the first time I showed a linear TV veteran our CTV targeting capabilities. She stared at the screen for a full minute. 'You mean I can target people who've searched for my competitors and are watching cooking shows in Austin?' Yes. Yes you can."

Measurement That Proves Value

For years, TV advertisers accepted that measurement was fuzzy. CTV doesn't allow that excuse anymore.

The Metrics That Matter

Going Deeper

Creative That Wins on the Big Screen

CTV isn't mobile. It's not social. The creative rules are different.

Where This Is Going

The trends I'm watching that will define CTV's next chapter:

That CMO from 2019? Her brand is now a CTV-first advertiser. They still run some linear for reach, but CTV is the performance engine. Every dollar measured. Every impression accountable. Every campaign optimized.

The living room revolution is here. The only question is whether you're riding it or getting left behind.