CTV Advertising

As audiences shift from traditional TV to streaming, advertisers use CTV to deliver targeted video ads directly to viewers on internet-connected TVs. Connected TV advertising is now one of the fastest-growing segments in digital marketing.

What is CTV Advertising?

Connected TV (CTV) ads are video ads delivered through streaming services on devices connected to the internet. This includes smart TVs, streaming devices such as Roku, Amazon Fire TV Stick, and Apple TV, as well as gaming controllers like PlayStation and Xbox.

Unlike traditional TV ads, CTV ads are highly targeted, measurable, and often non-skippable.

Benefits of CTV Advertising

Connected TV offers several advantages over other types of advertising:

• Precise targeting –  Use demographic, behavioral, geographic, and interest-based data to reach the right audience.
• High engagement  –  Ads appear on large screens during premium, often long-form content, leading to higher viewability and completion rates.
• Measurable performance –  Track impressions, completion rates, conversions, and ROI.
• Cross-device reach – Syncs campaigns across mobile, desktop and TV for holistic audience engagement.
• Non-skippable formats – Typically, these ads cannot be skipped for a specified period, ensuring the message is delivered in full.
• Cord-cutter reach –  Connect with audiences no longer reachable through traditional cable or satellite TV.

How Does CTV Advertising Work?

CTV advertising operates through programmatic platforms or direct deals with publishers. Advertisers purchase ad slots on streaming services or free ad-supported TV (FAST) channels. The process includes:

1. Audience Targeting: Define segments based on data like location, interests, household income, or viewing behavior.
2. Ad Delivery: Ads are served within streaming content: pre-roll, mid-roll, or post-roll.
3. Measurement: Track metrics such as ad impressions, completion rates, incremental reach, and attribution to website visits or app installs.

Examples of CTV Advertising

Monopoly ad on a streaming baseball match – Without interrupting the match, the ad appears picture-in-picture.

Sunglass Hut – This case study demonstrates how Sunglass Hut utilized dynamic CTV and video to create a personalized ad experience. The campaign used Dynamic CTV and Video ads to deliver personalized experiences by displaying nearby store locations and offering virtual try-ons for sunglasses.

How to Buy CTV Advertising

There are two main buying methods:

Direct buys: Advertisers purchase inventory directly from specific streaming platforms like Hulu, Peacock, or YouTube TV. This method offers premium placements with guaranteed impressions and fixed pricing.

Programmatic buying: Advertisers buy ad placements through demand-side platforms (DSPs) such as The Trade Desk or Google Display & Video 360. This enables real-time bidding, precise audience targeting, and flexible budget allocation across multiple streaming services.

Buying models:

• CPM (Cost per Mille): A pricing model where advertisers pay a set cost for every 1,000 impressions served. It’s the most common model used in CTV and programmatic advertising.
• Guaranteed Deals: Advertisers secure a fixed amount of impressions at a pre-agreed price, regardless of bidding competition. This ensures predictable delivery and placement within premium inventory.
• Private Marketplaces (PMPs): Invite-only auctions that give advertisers access to high-quality inventory from select publishers. PMPs offer better control over brand safety, audience targeting, and inventory quality compared to open auctions.