As traditional cable TV continues to lose ground to streaming, advertisers are shifting their budgets and strategies to follow audiences into the digital space. That’s where Connected TV (CTV) comes in—a powerful channel that combines the storytelling impact of television with the targeting precision of digital, but what is CTV exactly, and how does it work for brands?
Whether you’re just hearing about connected TV advertising or are ready to launch your first campaign, this guide breaks down what CTV advertising is, how it works, why it matters, and how your brand can harness its full potential.
What is Connected TV?
Connected TV, often abbreviated as CTV, refers to any television set that’s connected to the internet and can stream digital content. This includes smart TVs with built-in internet capabilities, as well as TVs connected to devices like:
- Roku
- Amazon Fire Stick
- Apple TV
- Chromecast
- Gaming consoles (Xbox, PlayStation)
- Connected Blu-ray players
So when someone asks, “What is CTV?” the simplest answer is that it’s internet-enabled television. Instead of watching live cable broadcasts, viewers stream shows and movies on demand, often through subscription services like Netflix, Hulu, Disney+, or ad-supported platforms like Pluto TV and Tubi.
Over 90% of US households have at least one Connected TV device. Furthermore, about 74% of viewers watch ad-supported streaming content on CTV, making it a goldmine for companies and individuals looking to advertise their products or services.
What is CTV Advertising?
CTV ads are video ads placed within content streamed on connected TVs. These are the commercials that run before, during, or after a show or movie on streaming platforms that support ads. They’re common on ad-supported streaming platforms like Hulu, Peacock, and Netflix, as well as on free ad-supported services like Pluto TV and Tubi.
Unlike traditional linear TV commercials, CTV ads are delivered digitally, allowing for advanced targeting, real-time measurement, and greater flexibility. In other words, CTV marketing lets brands reach audiences who have largely cut the cord on cable but still spend significant time watching TV content, just through internet-connected devices. CTV advertising spend is expected to reach $46.89 billion by 2028, significantly outpacing traditional TV ad spending for the first time ever. If you’re considering investing in CTV ads, now’s the time to do it—and we’ll show you how to.
How Does CTV Advertising Work?
CTV ads are digital video commercials served to viewers who watch content through a connected TV device. They often look just like traditional TV commercials in both format and length, but behind the scenes, they operate more like online ads. CTV advertising works by combining the broad reach and immersive experience of television with the sophisticated targeting capabilities of digital marketing.
Brands and agencies purchase ad inventory directly from streaming platforms or through programmatic advertising exchanges, allowing them to strategically place their ads within premium streaming content. These ads aren’t distributed at random; instead, they’re delivered to specific households based on a wealth of data—everything from demographics and interests to location and even past online behavior. Because CTV ads are served digitally, advertisers can also track detailed metrics such as impressions, video completion rates, and, in some cases, conversions linked directly to the ad, providing a level of insight that far surpasses traditional cable TV measurement.
So if you’ve ever wondered how connected TV advertising actually works, the answer is that it all comes down to the data.
Here’s how CTV ads work (and how performance is measured):
- Audience targeting: Ads are delivered to specific households based on data like age, interests, location, and behavior
- Programmatic delivery: Automated systems place ads in real time across streaming platforms
- Impression tracking: Advertisers can see exactly how many times an ad was served
- Completion rates: Measure how often viewers watch the ad all the way through
- Cross-device attribution: Track whether viewers take action on another device after seeing the ad
- Conversion tracking: Link ad exposure to actions like website visits, sign-ups, or purchases
- Frequency control: Limit how often the same household sees an ad to avoid overexposure
Thanks to its internet-based delivery, it brings all the advantages of dynamic targeting and performance tracking found in other digital channels, making it a powerful tool for modern marketers.
5 Benefits of CTV Advertising
Why are brands investing so heavily in connected TV advertising? The benefits are substantial:
1. Precision Targeting
Unlike traditional TV, which largely relies on broad demographic assumptions tied to programming, CTV ads can be targeted based on highly specific data sets. You can reach households by income, age, interests, purchase behaviors, and even retarget people who have visited your website.
2. Massive Reach with Premium Inventory
Millions of people have moved from cable to streaming, spending hours a day on platforms accessible through connected TVs. This gives advertisers access to high-quality, brand-safe inventory where viewers are actively engaged.
3. Better Measurement and Attribution
Because CTV advertising is digital, advertisers can track metrics such as impressions, completion rates, and frequency. Many platforms also allow cross-device attribution, meaning you can see when someone viewed your CTV ad and later made a purchase on their phone or laptop.
4. Non-Skippable Formats
Most CTV ads are non-skippable, so you’re guaranteed to get your message in front of viewers. This creates strong brand recall—often higher than standard online video ads.
5. Creative Flexibility
CTV marketing lets you tailor your ads by audience segment, run multiple creatives in the same campaign, and even swap out messaging based on real-time performance.
Simply put, the benefits of CTV advertising lie in combining the storytelling power of TV with the accountability and precision of digital marketing.
What is CTV in Advertising Compared to Other Digital Ads?
If you’re weighing where to invest your marketing dollars, you might wonder how CTV advertising stacks up against other digital channels like social video or display. The primary distinction is context and device. CTV ads are typically viewed on large screens, in lean-back settings where viewers are more engaged—often sitting down to watch a full show or movie. While traditional TV shares that same immersive experience, it lacks the precise targeting and performance tracking that make CTV so powerful. Meanwhile, social or mobile ads are typically consumed during a quick, distracted moment on a smaller screen.
That makes connected TV advertising ideal for brand storytelling, product launches, and campaigns that demand maximum visual impact.
| CTV Advertising | Traditional TV Commercials | Social Video Ads | Display Ads | |
| Device | Smart TVs, streaming devices | Cable & broadcast TV | Mobile & desktop | Mobile & desktop |
| Viewing Experience | Lean-back, highly engaged | Lean-back, broad audience | Scroll-based, often passive | Banner-style, low engagement |
| Ad Format | Full-screen, non-skippable video | Full-screen video | Short-form video (often skippable) | Static or animated banners |
| Targeting | Advanced (household-level, data-driven) | Broad (age, gender, program-based) | Advanced (user-level data) | Moderate |
| Measurement | Impressions, completion rate, conversions | Estimated reach (Nielsen ratings) | Views, clicks, engagement | Clicks, impressions |
| Flexibility | High (real-time optimization) | Low (fixed schedules, upfront buys) | High | High |
| Cost Efficiency | More efficient, less waste | High cost, potential waste | Flexible budgets | Low cost, lower impact |
| Best For | Brand awareness, storytelling, precision targeting | Mass awareness, broad reach | Engagement, quick messaging | Retargeting, direct response |
In short, CTV advertising delivers the same premium, big-screen experience as traditional TV—but with the added advantages of digital targeting, real-time optimization, and measurable performance.
How to Get Started with Connected TV Marketing
Are you ready to try CTV advertising for your brand? Here’s how to set up a campaign that gets results:
1. Define your target audience and key campaign objectives: Are you building broad brand awareness, driving website visits, or trying to retarget existing customers? Knowing this shapes your targeting and creative strategy.
2. Choose your buying approach: Decide whether to work directly with streaming platforms (like Hulu or Sling TV) or use programmatic ad platforms that offer access to multiple streaming services and inventory sources. Programmatic buying is popular because it allows real-time bidding, dynamic audience adjustments, and often better cost efficiency.
3. Create high-impact video content: Design video creative specifically for the TV viewing experience. Remember, these ads are being watched on big screens—high-quality visuals and clear, concise messaging are crucial. Even if your ads are short, they should feel cinematic and resonate emotionally.
4. Launch, measure, and optimize: Once your campaign is live, track key performance metrics such as impressions, video completion rates, and cross-device actions like website visits or purchases. Optimize in real-time by adjusting targeting, creative, or bidding strategies.
Launch Your CTV Advertising Campaign with Avalanche Studios
As more households cut the cord and streaming continues to dominate living rooms, connected TV advertising is becoming an essential piece of any forward-thinking marketing strategy. Whether you’re promoting a new product, elevating brand awareness, or driving online conversions, investing in connected TV marketing can pay huge dividends.
If you’re looking to harness the power of digital TV advertising for your brand, Avalanche Studios is here to help. From concept and scriptwriting to full video production and campaign rollout, our team can develop striking, effective CTV ads that captivate audiences on the biggest screen in the house.
Located in Salt Lake City, Utah, we specialize in creating high-quality commercial content that’s perfectly tailored for connected TV. Whether it’s your first foray into CTV advertising or you’re ready to scale your strategy, we’ll guide you every step of the way. Contact us today to get started—and let Avalanche Studios turn your brand story into a connected TV masterpiece.