Did you know that by the end of 2025, 72% of U.S. households will cut the cord, moving away from traditional TV? That means millions of viewers are shifting to streaming platforms, leaving behind traditional cable.
If you’re still relying on linear TV ads, you’re missing out on a highly engaged, data-driven audience.
And let’s be honest, your competitors are probably already running CTV campaigns.
Not sure where to start? Don’t worry—we’ve got you covered.
In this blog, we’ll cover everything you need to know about CTV advertising, including:
- What is CTV advertising, and its comparison to OTT and linear TV
- How CTV advertising works and its benefits
- Major CTV advertising platforms and how brands use them
- Real-life examples of CTV ads and a step-by-step guide to launching your own campaign
P.S. Wasting ad spend on broad audiences? Stop guessing and start targeting. inBeat Agency ensures your ads reach the right people at the right time. We helps you run high-performance campaigns using data-driven insights, influencer collaborations, and engaging creative strategies to maximize ROI and audience engagement.
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TL;DR:
- CTV advertising delivers targeted video ads on internet-connected TVs and streaming devices like Roku, Hulu, and Amazon Fire TV.
- Difference from OTT & Linear TV: CTV focuses on TV screens, OTT includes all internet-enabled devices, and linear TV follows scheduled programming with no interactivity.
- Key targeting features: Behavioral, demographic, geographic, and retargeting capabilities ensure precise audience reach.
- Types of CTV ads: Pre-roll/mid-roll video ads, pause ads, interactive ads (QR codes), and shoppable ads.
- Industry growth: 88% of U.S. households have internet-connected TVs, and CTV ad spend is projected to hit $46.89 billion by 2028.
- Major platforms: Hulu, Roku, Amazon Fire TV, YouTube TV, Netflix, and others offer CTV ad placements with different targeting options.
- How it works: Uses programmatic ad buying, audience segmentation, and dynamic ad insertion to optimize campaigns.
- Benefits for brands: Precise targeting, high engagement rates, real-time performance tracking, cost efficiency, and safe premium ad placements.
- Best practices: Use high-quality creatives, leverage advanced targeting, implement interactive elements, optimize ad length/frequency, and align messaging with trends.
- Performance measurement: Metrics include ad impressions, reach, completion rates, view-through rates (VTR), conversion tracking, and cost per view (CPV).
- Future trends: AI-driven programmatic buying, voice-activated interactive ads, and growth in ad-supported streaming (AVOD).
- Common misconceptions: CTV is only for big brands (false), has traditional TV limitations (false), and is the same as YouTube ads (false).
- Key takeaway: CTV advertising is a high-impact, data-driven marketing strategy that allows brands to reach engaged streaming audiences with measurable ROI.
What Is CTV Advertising?
Connected TV (CTV) advertising delivers video ads on internet-connected devices, such as smart TVs, streaming devices, and set-top boxes. Unlike traditional TV advertising, it allows precise targeting using first-party data and programmatic advertising.
Brands use CTV to reach niche audiences across ad-supported streaming services like Hulu, Roku, Netflix, and Amazon Fire TV Stick for better engagement.
Buick’s Hulu campaign is a standout example. The campaign shows the Encore GX’s features like Wi-Fi connectivity, backup assistance, and a touchscreen interface, in an engaging and easy-to-follow ad.
Before we dive deeper, let's break down some key targeting features that make CTV advertising so powerful.
Key Targeting Features of CTV Advertising
The following are the major targeting features of CTV ads:
- Behavioral targeting: Uses viewer behavior, online activity, and content preferences to serve relevant ads.
- Demographic & geographic targeting: Reaches audiences based on age, income, and location for precise targeting.
- Device-based targeting: Delivers ads across smart TVs, streaming devices, and mobile devices for connected TV marketing.
- Retargeting & sequential messaging: Engages users with follow-up ads to ensure advertising messages are reinforced across multiple screens.
What is the Difference Between OTT and CTV advertising?
It’s easy to confuse CTV and OTT, but they have distinct features.
OTT advertising delivers ads on any internet-enabled device, including smartphones, tablets, and TVs, through streaming services. CTV advertising, on the other hand, delivers ads only on internet-connected TVs and streaming devices like Roku and Amazon Fire TV Stick, focusing solely on the TV screen experience.
Let’s clear up another common question before moving forward: how does CTV compare to traditional TV advertising?
CTV vs. OTT vs. Linear TV: Understanding the Differences
Linear TV is traditional scheduled programming on cable or satellite with no interactivity, OTT delivers streaming content over the internet on any device with interactive ad options, and CTV is internet-based streaming limited to smart TVs and streaming devices – as we explained above.
The table below highlights the key distinctions to help you choose the right advertising channel for your marketing campaigns.
Types of CTV Ads
CTV advertising offers various ad formats designed to increase engagement and drive conversions. Unlike traditional TV advertising, where ads play in scheduled commercial breaks, CTV ads are more interactive and strategically placed within streaming content.
Below are the most effective types of Connected TV ads used across advertising platforms.
- Pre-roll and mid-roll video ads: Play before or during streaming content. They ensure high video completion rates.
- Pause ads: A static ad that appears when a viewer pauses content. It provides a non-intrusive advertising experience.
- Interactive ads: Include QR codes or click-to-buy options. They let users engage directly from connected TV devices.
- Shoppable CTV ads: Let viewers purchase products directly from their TV screens. They merge e-commerce with CTV advertising campaigns.
CTV Advertising Statistics: Key Data & Industry Trends
CTV advertising is experiencing rapid growth, driven by shifting viewer habits and increasing adoption of internet-connected devices.
The stats below highlight key trends shaping the CTV advertising industry.
- In 2022, 111 million U.S. households used connected TVs at least once a month. Projections indicate continued growth, with 121 million households expected to rely on smart TVs, streaming devices, or gaming consoles by 2027.
- In 2023, 88% of U.S. households had at least one internet-connected TV, the highest rate ever recorded.
- US people have an average of four streaming subscriptions, while 60% of Brits use up to 3 different streaming platforms. This shows the growing shift away from traditional TV, as more viewers prefer on-demand content across multiple streaming services.
- 50% of viewers reported spending less time on traditional TV. Meanwhile, 43% said they now watch more streaming and catch-up content than they did last year.
- Nielsen reports that in the week of March 30, 2020, soon after quarantine, CTV device usage in the U.S. increased by 81% compared to the previous year.
- LinkedIn research shows that 98% of audiences watch CTV, and 94% of them are willing to watch ads while streaming on the platform.
- B2B brands using CTV campaigns experienced an 88% increase in product consideration after viewers saw their ads.
- CTV ads encourage swift decision-making among professionals, with 72% considering a product for purchase within a week of seeing a B2B advertisement.
- CTV ad spending in the US is expected to reach $46.89 billion by 2028 because these CTV ads perform so well.
That brings us to the next point:
How Does CTV Advertising Work?
Unlike linear TV advertising, which delivers ads to a broad audience at scheduled times, Connected TV advertising uses advanced targeting capabilities and real-time bidding to reach the ideal audience.
Key components that make CTV advertising work effectively are:
1. Programmatic Ad Buying
Uses demand-side platforms (DSPs) and supply-side platforms (SSPs) to automate CTV ad placements in real time. This ensures you get the best advertising inventory for your budget.
2. Audience Segmentation
Targets users based on demographics, location, and behavioral insights. The point is to reach niche audiences instead of wasting advertising dollars on broad audiences.
3. Dynamic Ad Insertion (DAI)
Delivers personalized ads during streaming content based on viewer behavior and first-party data. This approach increases video completion rates and conversion rates.
Now that we’ve covered how CTV advertising works, let’s discuss its benefits.
7 Key Benefits of CTV Advertising for Brands
Here’s why brands are investing in CTV advertising campaigns:
- Precise audience targeting: Uses first-party data and audience behavioral insights for more specific targeting than traditional TV. This allows brands to reach the ideal audience without wasting advertising dollars.
- High engagement & video completion rates: 97% of video ad impressions on CTV were watched until the end in North America in 2021. This proves its effectiveness in keeping viewers engaged because the average completion rate is 78%.
- Measurable results: Brands can track campaign performance using real-time analytics and CTV measurement tools. That means you get accurate measurements of conversion rates and viewer behavior.
- Local & geo-targeting: Advertisers can focus on specific regions or cities and can tailor marketing messages to local markets.
- In-flight optimization: Unlike linear TV ads, CTV allows brands to adjust campaigns mid-run. It improves efficiency based on measurement tools and viewer insights.
- Cost efficiency: CTV advertising often delivers a better return on ad spend (ROAS) by reducing wasted impressions. Advertisers can set budgets, bid strategically, and optimize spending for higher conversions.
- Safe & premium content: Ads are displayed in high-quality streaming environments, which ensures brand safety and builds audience trust.
Major CTV Advertising Platforms & How Brands Use Them
Choosing the right CTV advertising platform is crucial for reaching the ideal audience. Below, we have shared some of the most popular advertising platforms, along with how brands leverage their features to enhance campaign performance.
1. Hulu
Hulu is one of the most widely used ad-supported streaming services, with 51.2 million users (as of August 20, 2024). With multiple ad tiers, Hulu provides brands with flexible ad options tailored to viewer behavior and subscription preferences.
Hulu offers standard ad-supported plans and a premium ad-free option to allow brands to choose ad placements based on user preferences.
How brands use Hulu
- Programmatic buying: Brands use DSPs to place CTV ads in real time, optimizing advertising inventory for precise audience targeting.
- Interactive ad formats: Hulu supports choose-your-own-ad experiences, where viewers pick the type of ad they prefer, increasing engagement and video completion rates.
- Contextual ads: Ads are placed based on viewer behavior and streaming content, ensuring relevant ad placements alongside premium content.
2. Roku
Roku is another leading CTV advertising platform with 85.5 million active users as of Q3 2024. With its vast user base, Roku provides advertisers with multiple ways to engage audiences through The Roku Channel and various premium subscription-based apps.
How brands use Roku
- Interactive and shoppable TV ads: Roku enables brands to run interactive elements, such as QR codes and click-to-buy options. This allows viewers to engage directly from their connected TV devices.
- Integration with first-party data for ad personalization: Advertisers use Roku’s data-driven marketing approach to deliver contextual advertising based on viewer behavior and audience segments.
- Seamless retargeting across devices: Roku supports cross-device targeting which allows brands to reconnect with users on mobile devices, tablets, and desktops after initial exposure on internet-connected TVs.
3. Amazon Fire TV
Amazon Fire TV is a powerful CTV advertising platform that gives access to millions of engaged viewers while leveraging Amazon’s vast shopping data for hyper-targeted ads. Integrating with Amazon DSP lets you reach niche audiences with very precise targeting. You also get a measurable campaign performance to inform your future strategies.
How brands use Amazon Fire TV
- AI-driven audience segmentation: Uses first-party data and machine learning to deliver personalized ads based on viewer behavior and purchase history.
- Ads linked to Amazon product pages for immediate purchases: Fire TV ads allow brands to drive direct sales by connecting video advertising with e-commerce. This makes it easier for consumers to shop directly from their connected TV devices.
Besides these, other CTV advertising platforms include YouTube TV, Netflix, Sling TV, Tubi, Peacock, and Pluto TV.
How to Launch a CTV Ad Campaign: Step-by-Step Guide
You need a clear strategy for launching a CTV advertising campaign to make sure your audience targeting is on point, and you get high engagement rates. inBeat experts have shared detailed steps to set up a successful CTV advertising strategy. That way, you can maximize your campaign performance.
1. Identify Your Goals
Before launching a CTV advertising campaign, it's essential to define clear objectives. We suggest asking yourself the following key questions:
- What is the primary goal of my campaign? (Brand awareness, lead generation, conversions, website traffic, etc.)
- Who is the target audience? (Demographics, location, interests, viewing behavior, device usage)
- How does this campaign fit into my overall digital marketing strategy? (Cross-channel integration, retargeting, audience segmentation)
- What specific action should the audience take after seeing the ad? (Make a purchase, visit a website, sign up for a service, download an app)
Answering these questions ensures that CTV advertising efforts are data-driven, audience-focused, and aligned with business objectives.
📌 Pro tip: Use a tool like Google Analytics or HubSpot to monitor campaign objectives and adjust strategies based on real-time insights.
2. Choose a CTV Advertising Platform
Once campaign goals are set, the next step is selecting the right CTV advertising platform to reach the target audience. CTV ads can run across different types of platforms, each offering unique opportunities for campaign performance and audience engagement.
The main categories of CTV advertising platforms are:
- Smart TV platforms → These are built-in ad-supported streaming services that come pre-installed on Smart TVs. They allow advertisers to place ads within curated content. Samsung TV Plus, LG Channels, and VIZIO WatchFree+ offer free, ad-supported streaming without additional hardware.
- Streaming devices & operating systems → This category refers to devices and software ecosystems that power streaming on internet-connected TVs and enable ad placements across apps. For example, Roku, Amazon Fire TV, Google Chromecast, and Apple TV allow advertisers to reach viewers across multiple streaming services.
- Ad-supported streaming services → These platforms offer premium content with integrated ad placements to monetize free or lower-cost subscriptions. Hulu, Peacock, Tubi, Pluto TV, and Sling TV display ads within TV shows, movies, and live content.
- Retail media CTV platforms → Retail-owned advertising networks leverage first-party shopping data to serve hyper-targeted ads linked to product pages. Amazon Fire TV and Walmart Connect CTV let you advertise based on users’ purchase intent and browsing behavior.
- Premium subscription-based CTV networks → These high-quality streaming services offer ad-supported tiers. As such, you can target viewers consuming this premium content. YouTube TV, Netflix (ad-supported), and Paramount+ are good examples because they integrate ads within their live and on-demand programming.
📌 Pro tip: Before selecting a platform, analyze audience demographics using Comscore or Nielsen to identify where your target viewers are most active.
3. Select the Right Ad Type
The ad format plays a crucial role in determining the effectiveness of a CTV advertising campaign. You can choose between short, high-impact video ads for quick engagement or longer, storytelling-driven ads to build deeper brand connections.
Standard formats include 6-second bumper ads, 15-second mid-rolls, and 30-second full-screen ads. Adding interactive elements, such as QR codes or clickable overlays, can drive higher engagement and encourage viewers to take immediate action.
📌 Pro tip: We suggest matching the ad type to intent—shorter ads (6-15 sec) work best for brand recall, while 30-second spots are ideal for storytelling and conversions.
4. Define Target Audience
With CTV’s advanced targeting options, you can refine your audience down to highly specific segments. Unlike linear TV, which casts a wide net, CTV ensures ads land in front of the right people at the right time.
Let’s see how you can fine-tune your CTV audience targeting:
- First-party data: Use insights from loyalty programs, CRM systems, or past purchases to deliver hyper-relevant ads.
- Third-party data: If first-party data isn't available, you can rely on trusted third-party data providers to create audience segments.
- Look-alike modeling: Expand reach by targeting new users who share traits with your most engaged customers.
- ACR (automatic content recognition) targeting: Serve ads based on what viewers actually watch on their smart TVs.
- Contextual audience targeting: Show ads to users based on their browsing habits, search history, and content preferences.
- Geo-targeting & household-level targeting: Want to focus on specific cities or even zip codes? CTV makes it easy to direct your advertising dollars where they matter most.
Fine-tuning the CTV target audience means higher engagement, smarter ad spend, and stronger conversions—without wasting the budget on the wrong viewers.
📌 Pro tip: Combine first-party CRM data with third-party audience insights from LiveRamp or Oracle Data Cloud to refine audience segmentation.
5. Launch, Measure, and Optimize
Your work doesn’t stop once the CTV ad campaign is live.
Unlike linear TV advertising, where ad performance can’t be influenced after launch, CTV advertising allows for in-flight adjustments based on real-time tracking. The point is to improve your campaign performance as it runs.
Track video completion rates, conversion rates, and audience engagement to assess ad effectiveness. If engagement is low, adjust ad placements, frequency, or messaging to improve results.
We suggest running A/B tests on different ad formats and audience segments to determine what resonates best. Scale campaigns by increasing the successful ads’ budget while reallocating spend from underperforming areas.
📌 Pro tip: Keep an eye on seasonal trends and audience behaviors. If engagement dips, refresh creative elements or align messaging with ongoing events and consumer interests.
P.S. Still not sure how to run CTV ads? Don’t worry! Experienced creative agencies can help you target the right audience, optimize ad performance, and track real-time results so you can focus on scaling your brand and hitting bigger goals.
Best Practices for CTV Advertising Success
To get the most out of CTV advertising, it’s essential to follow proven strategies that increase engagement, targeting, and ROI. The tested best practices below ensure high-performing CTV campaigns:
- Use high-quality, engaging creatives: Grab attention with visually compelling ads and clear, impactful messaging.
- Leverage advanced targeting: Focus on behavioral and interest-based segmentation to reach the right audience.
- Use interactive & shoppable ads: Implement QR codes, click-to-buy features, and dynamic overlays to drive conversions.
- Optimize ad length and frequency: Find the right balance to prevent ad fatigue. Balance exposure and budget to keep ads effective without overwhelming viewers.
- Adapt strategies based on seasonality & trends: Align campaigns with consumer behavior shifts, holidays, and industry trends for better engagement.
How to Measure CTV Advertising Performance
Tracking the right metrics helps optimize campaigns and improve ROI. Major CTV ad performance metrics to track are:
- Ad impressions: Number of times an ad is displayed.
- Frequency & reach: Measures how often the same person sees an ad and the total number of unique viewers.
- Incremental reach: Unique audiences reached compared to traditional TV.
- Completion rate: Measures the percentage of times an ad is watched to the end.
- View-Through Rate (VTR): Percentage of viewers who completed the ad.
- Click-Through Rate (CTR): Measures how often viewers click on an interactive CTV ads
- Cost Per View (CPV): Analyzes how much is spent per completed view.
- Cost Per 1,000 Impressions (CPM): Measures the cost per thousand ad impressions.
- Conversion tracking: Measures the impact of CTV ads on in-store or online purchases.
- Household-level attribution: Identifies whether multiple members of the same household were exposed to and engaged with an ad.
CTV Advertising Examples: How Brands Are Winning
The examples below show how companies are leveraging CTV platforms, creative storytelling, and precise targeting to enhance brand awareness and improve conversion rates.
1. Volve - Roku and Samsung devices
Volvo leveraged interactive CTV ads to increase engagement and drive a 35% sales lift for its S90 model. The campaign ran on Roku and Samsung devices, which allowed viewers to explore the car’s interior and exterior, receive location-based dealership info, and request details via SMS.
The campaign saw 526,000 unique engagements, over 95,500 households engaged, and more than 1,200 requests for dealership information. These numbers prove that interactive elements in CTV advertising can significantly improve consumer engagement, personalization, and conversion rates.
2. Chase - Max (Formerly HBO Max)
Chase collaborated with Kevin Hart to create a fast-paced and entertaining ad that highlights the benefits of the Chase Freedom Unlimited card.
In a 15-second commercial, Hart delivers catchy rhyming lines with perfect timing. The ad emphasizes 3% cash back on dining and takeout. Hart’s playful tagline, “Cashback on flapjacks, baby backs, or tacos at the taco shack,” reinforces the card’s value in a fun and memorable way.
3. GEICO - Amazon Prime Video
GEICO created a lighthearted and relatable ad comparing the ease of using its services to the universal love for Parmesan. Set in a restaurant, the commercial features a waiter continuously grating cheese as the customer remains silent.
The 30-second ad delivers a humorous twist on a common dining experience. It keeps the message simple and ensures the viewing experience remains enjoyable without unnecessary interruptions. The comedic yet memorable scenario reinforces GEICO’s brand identity and makes insurance feel more approachable.
Future Trends in CTV Advertising
Emerging innovations are shaping the next wave of CTV advertising, offering better engagement and precision. Staying ahead of these trends helps you remain competitive in this space that evolves so rapidly.
1. AI-Driven Programmatic Buying
Machine learning automates ad placements, optimizing bids and targeting based on real-time user behavior. This ensures ads reach the right audience with minimal waste.
2. Voice-Activated & Interactive TV Ads
CTV ads are integrating with Alexa, Google Assistant, and smart remotes, which allow viewers to engage with ads using voice commands for a frictionless experience.
3. Growth of Ad-Supported Streaming (AVOD)
As subscription fatigue increases, more streaming platforms are introducing free, ad-supported tiers. This expansion of ad-supported video on demand (AVOD) opens up premium inventory for advertisers to reach a wider audience without relying solely on paid subscriptions.
Common Misconceptions About CTV Advertising
Despite its growing popularity, CTV advertising is still misunderstood by many advertisers. Some common misconceptions and the truth behind them are.
1. CTV Ads Are Only for Big Brands – Myth!
Many believe that CTV advertising is out of reach for small businesses, but that’s not the case. With programmatic platforms and flexible budgeting options, even smaller brands can run cost-effective campaigns and reach highly targeted audiences without overspending.
2. CTV Has the Same Limitations as Traditional TV – Not true!
Unlike linear TV advertising, which relies on broad audience reach, CTV provides advanced targeting capabilities, detailed measurement tools, and real-time tracking. Advertisers can adjust campaigns mid-flight, track conversion rates, and refine their advertising strategy based on data.
3. CTV Ads Are Just Like YouTube Ads – Different!
While both CTV and YouTube ads deliver video content, CTV advertising is more immersive, often non-skippable, and integrated within premium streaming platforms. It also offers better audience retention and precise targeting compared to broad-based YouTube ads.
Maximize Your Brand’s Reach with inBeat Agency’s Marketing Expertise
CTV advertising is transforming the way brands connect with audiences, offering precise targeting, interactive ad formats, and real-time performance tracking. With the shift from linear TV to streaming platforms, businesses that adopt CTV strategies can engage viewers in a more personalized and measurable way.
Key Takeaways
- CTV advertising helps brands reach highly engaged audiences through streaming platforms.
- Unlike linear TV, CTV offers precise targeting based on user behavior and demographics.
- Brands can choose from different CTV ad formats, including interactive, shoppable, and pause ads.
- Programmatic ad buying automates placements, optimizing reach and efficiency.
- Measurement tools in CTV advertising provide insights into campaign performance and audience engagement.
If you’re looking to launch a high-performance advertising campaign, inBeat Agency can help. Our data-driven strategies, creative execution, and audience insights ensure your ads reach the right people at the right time. Book a free strategy call now!
FAQ’s
What does CTV mean in advertising?
CTV means Connected TV, referring to internet-enabled televisions that stream digital content. In advertising, CTV allows brands to reach audiences through targeted, data-driven video ads on platforms like Roku, Apple TV, and smart TVs. It combines the precision of digital marketing with the impact of traditional TV.
Is Netflix considered CTV?
Yes, Netflix is a CTV platform because it is accessed through internet-connected TVs and streaming devices. With its ad-supported tier, Netflix now allows brands to run CTV ads on its platform.
How much do CTV ads cost?
CTV ad costs vary based on factors like targeting, platform, and ad format. On average, CPM (cost per thousand impressions) ranges from $35 to $65, but premium placements may cost more.
Is YouTube TV CTV?
Yes, YouTube TV is a CTV platform as it streams live and on-demand content on internet-connected TVs. Brands can run CTV ads on YouTube TV through Google Ads and programmatic platforms.
Are CTV ads clickable?
Some CTV ads are clickable, depending on the platform and ad format. Many CTV platforms offer interactive ads with QR codes or call-to-action overlays to drive engagement.
Is Apple TV a CTV?
Yes, Apple TV is a CTV platform as it streams content via an internet-connected device. Brands can advertise on Apple TV+ and third-party ad-supported apps available on the Apple TV platform.
