Connected TV (CTV) advertising refers to video ads delivered through internet-connected television devices such as smart TVs, Roku, Amazon Fire TV, Apple TV, and gaming consoles. These ads appear inside streaming services like Hulu, Peacock, Tubi, Pluto TV, and YouTube TV.
Unlike traditional television advertising, CTV ads allow brands to target specific audiences and measure campaign performance, similar to digital advertising platforms like Meta or Google.
In simple terms: CTV combines the reach and impact of television with the targeting and measurement of digital advertising.
Connected TV refers to any television device that can stream internet video.
Examples include:
Consumers now watch a large portion of television content through streaming platforms rather than traditional cable networks.
This shift is what created the opportunity for CTV advertising.
In advertising conversations, CTV usually refers to ads delivered inside streaming apps on television screens.
CTV advertising works similarly to programmatic digital advertising.
Unlike traditional TV buying, brands are able to choose which audiences see their ads and track how each campaign performs.
Advertisers can target viewers using:
This precision targeting is one of the biggest advantages of connected TV advertising.
In advertising conversations, CTV makes television advertising accessible to DTC and mid-market brands.
CTV was originally viewed as a brand awareness channel. However many brands now treat it like paid social advertising.
Performance marketers apply the same strategy:
This approach is especially effective when brands adapt high-performing social UGC into CTV creative.
CTV campaign costs include two main components.
Typical CPMs range from $15 to $40 depending on targeting and platform.
We recommend starting at $10,000 per month in media spend so results are statistically significant. For smaller geographies or tightly targeted audiences, budgets of $3,000 to $5,000 per month can also work.
Traditional TV commercials often cost:
$75,000 to $500,000+
UGC-based CTV creative is significantly cheaper because it uses existing social content.
Most brands already have the creative assets needed to launch a campaign.
Typical workflow:
This is the same performance creative loop used in paid social advertising.
Connected TV advertising allows brands to run targeted video ads within streaming platforms on internet-connected televisions. It combines the reach of traditional television with the targeting, optimization, and measurement of digital advertising. As streaming adoption grows, CTV is becoming one of the fastest-growing channels for performance marketers.
