What is CTV advertising (connected TV)?
The quick version: CTV (connected TV) advertising places video ads on streaming content watched through internet-connected televisions and devices, Roku, smart TVs, and streaming apps. Unlike traditional broadcast TV, CTV ads can be targeted to specific audiences, bought programmatically, and measured with digital attribution.
Key takeaways
- CTV = video ads on streaming watched via internet-connected TVs and devices.
- It blends TV’s big-screen impact with digital targeting and measurement.
- Most CTV ads are non-skippable and priced on a CPM basis.
- It is growing fast as viewers cut the cord and move to streaming.
As audiences abandon cable for streaming, TV advertising is moving with them. CTV gives advertisers the cinematic, full-screen impact of television plus the targeting and tracking they expect from digital, which is why budgets are shifting from linear TV to connected TV every year.
CTV vs linear TV
- Buying: linear is bought by estimated audience and daypart; CTV is bought programmatically, often in real time.
- Targeting: linear is broad; CTV can target by audience, geography, and household data.
- Measurement: linear relies on panels; CTV offers digital, impression-level attribution.
- Format: CTV ads are usually non-skippable and viewed on the largest screen in the home.
How CTV is priced
CTV is bought on a CPM (cost per thousand impressions) basis, frequently with completed-view guarantees since viewers cannot skip. CPMs are higher than most display because attention and completion rates are high, you are paying for premium, full-screen video.
How to measure CTV
Because a TV ad rarely gets an immediate click, judge CTV on outcomes, not clicks. Use:
- Incrementality / lift tests to prove it drives real sales, see incrementality testing.
- Blended MER to see its effect on total revenue.
- View-through conversions, treated cautiously, for directional signal.
FAQ
What is CTV advertising?
Video ads on streaming content viewed through internet-connected TVs and devices like Roku and smart TVs. Unlike traditional TV, it can be targeted and measured digitally.
How is CTV different from linear TV?
Linear is broadcast on a schedule and bought by estimated audience; CTV is streamed, bought programmatically, targeted, and measured with digital attribution.
How is CTV priced?
Usually on a CPM basis, often with completed-view guarantees because most CTV ads are non-skippable.