Connected TV has emerged as one of the fastest-growing channels in digital advertising. With cord-cutting accelerating and streaming adoption reaching new heights, CTV offers advertisers the ability to reach engaged audiences with the impact of television and the precision of digital.
What is Connected TV Advertising?
Connected TV refers to any television that can stream digital content via internet connection. This includes smart TVs, streaming devices (Roku, Amazon Fire TV, Apple TV), and gaming consoles. CTV advertising allows brands to serve video ads to viewers streaming content on these devices.
The CTV Advantage
CTV combines the best of both worlds—the premium, full-screen experience of traditional TV with the targeting and measurement capabilities of digital advertising.
Key Benefits
- Premium inventory: Non-skippable, full-screen video in brand-safe environments
- Advanced targeting: Reach specific audiences based on demographics, behaviors, and interests
- Measurable results: Track impressions, completions, reach, and conversions
- Incremental reach: Access cord-cutters unreachable via linear TV
- Cross-device attribution: Connect CTV exposure to mobile and web conversions
đź“ş CTV vs OTT vs Linear TV
CTV refers to the device (connected television). OTT (Over-The-Top) refers to the content delivery method—streaming over the internet. Linear TV is traditional broadcast/cable television. CTV advertising targets viewers watching OTT content on connected television devices.
CTV Buying Models
Advertisers can access CTV inventory through several buying methods:
Programmatic CTV
Purchase CTV inventory through DSPs in real-time auctions. This approach offers flexibility, targeting precision, and campaign optimization at scale.
Direct/Guaranteed
Negotiate directly with streaming platforms for guaranteed placements. Better for large-scale campaigns requiring premium positioning and rate predictability.
Publisher Direct
Work directly with content publishers like Hulu, Peacock, or Paramount+ for exclusive placements and custom integrations.
CTV Targeting Strategies
Effective CTV campaigns leverage multiple targeting layers:
- Demographic targeting: Age, gender, household income, presence of children
- Geographic targeting: National, DMA, or ZIP code level
- Behavioral targeting: In-market signals, purchase intent, lifestyle interests
- Contextual targeting: Genre, content rating, show type
- First-party data: CRM matching, retargeting, lookalike audiences
- ACR data: Automatic Content Recognition for viewership-based targeting
"CTV has transformed from an experimental channel to a must-have in the media mix. Brands that aren't investing in CTV are missing a massive opportunity to reach engaged audiences in a premium environment."
Measuring CTV Performance
CTV measurement has evolved significantly, offering advertisers multiple ways to prove ROI:
Core Metrics
- Impressions: Number of times your ad was served
- Video Completion Rate (VCR): Percentage of viewers who watched the entire ad
- Reach & Frequency: Unique households reached and average exposures
- Cost Per Completed View (CPCV): Efficiency of spend
Advanced Measurement
- Brand lift studies: Measure awareness, consideration, and intent
- Foot traffic attribution: Connect CTV exposure to store visits
- Website/app attribution: Track conversions on digital properties
- Sales lift: Measure impact on actual purchases
- Incrementality testing: Isolate true CTV-driven lift
CTV Creative Best Practices
Maximize your CTV campaign effectiveness with these creative guidelines:
- Front-load your message—grab attention in the first 3 seconds
- Design for the big screen—high-resolution assets, readable text
- Include clear CTAs—even if viewers can't click, they can remember
- Test multiple lengths—:15, :30, and :60 variations
- Consider sound-on environment—most CTV viewing has audio enabled
- Use frequency capping to avoid viewer fatigue
The Future of CTV
Several trends are shaping the evolution of CTV advertising:
- Shoppable CTV: Interactive ads with QR codes and second-screen experiences
- Ad-supported streaming growth: More inventory as platforms launch ad tiers
- Unified measurement: Cross-platform measurement standards emerging
- AI-powered optimization: Machine learning driving creative and targeting decisions
- Privacy-first identity: Clean rooms and cohort-based targeting