What is CTV advertising (connected TV)?
Short answer: 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.