What is Connected TV (CTV) Advertising? Definition, Benefits & Examples

Introduction

Connected TV (CTV) advertising is revolutionizing how brands reach consumers in their living rooms. Unlike traditional TV commercials or skippable YouTube ads, CTV advertising delivers full-length, unskippable commercials directly to viewers watching content on their smart TVs, streaming devices, and gaming consoles.

If you've ever watched Hulu, Peacock, or Pluto TV and seen a 30-second commercial you couldn't skip, you've experienced CTV advertising. This advertising format combines the impact of traditional television with the precision targeting of digital marketing—and it's quickly becoming the most effective way to reach modern consumers.

What is Connected TV (CTV)?

Connected TV refers to any television that connects to the internet and allows viewers to stream content beyond traditional cable or broadcast channels. This includes:

• Smart TVs (Samsung, LG, Sony, Vizio with built-in streaming apps)
• Streaming devices (Roku, Amazon Fire Stick, Apple TV, Chromecast)
• Gaming consoles (PlayStation, Xbox) used for streaming
• Blu-ray players with streaming capabilities

What is CTV Advertising?

CTV advertising is the practice of delivering video commercials to viewers watching content on connected TV devices. These ads appear during streaming content on platforms like:

1. Content Provider Integration: Streaming platforms integrate ad slots into their content
2. Audience Targeting: Advertisers define their target audience using demographics, location, interests, and behaviors
3. Real-Time Ad Delivery: When a viewer in your target audience starts watching, the platform determines which ad to show
4. Ad Display: Your commercial plays in full on the viewer's TV screen with no skip button
5. Performance Tracking: You receive detailed reports showing impressions, completion rates, and conversions

Benefits of CTV Advertising

1. Massive Reach with Precision Targeting

CTV advertising reaches nearly 94% of U.S. households while allowing you to target only the specific audiences most likely to buy from you. You're not wasting money showing ads to people outside your service area or demographic.

2. Unskippable, Full-Length Attention

3. Cost-Effective Compared to Traditional TV

CTV advertising delivers 20-40% cost savings compared to traditional TV advertising while reaching the same (or better) audiences. At Smart TV Ads Co, our CPM rates start at just $16-24 for foundational targeting.

4. Premium, Brand-Safe Environment

Your ads appear during professionally produced content on trusted streaming platforms. Unlike social media, CTV ads run in a controlled, brand-safe environment with sound on over 95% of the time.

5. Real Business Results

• 202% increase in conversions (retail campaign case study)
• 9x return on ad spend (fashion brand launch)
• 47% increase in ROAS (healthcare e-commerce)

Who Should Use CTV Advertising?

CTV advertising works exceptionally well for:

How to Get Started with CTV Advertising

1. Define Your Target Audience: Who are your ideal customers? Consider demographics, location, interests, and behaviors.
2. Set Your Budget: CTV campaigns can start as low as $2,000-5,000 per month.
3. Create Your Commercial: You'll need a 15 or 30-second video commercial.
4. Choose Your Targeting Strategy: Select from foundational, intent-driven, or AI-enhanced precision targeting.
5. Launch and Optimize: Your CTV partner will launch your campaign and provide ongoing optimization.

Frequently Asked Questions