How does CTV advertising work for travel and hospitality?

Content on WhatAnswers is provided "as is" for informational purposes. While we strive for accuracy, we make no guarantees. Content is AI-assisted and should not be used as professional advice.

Last updated: April 8, 2026

Quick Answer: CTV advertising for travel and hospitality works by delivering targeted video ads to viewers on connected TV devices like smart TVs and streaming boxes, using programmatic buying and data-driven targeting. For example, in 2023, travel and hospitality brands increased CTV ad spending by 25% year-over-year, reaching $2.1 billion globally. These ads often feature dynamic creative optimization to show real-time pricing or availability, and they typically achieve 70% higher completion rates than mobile video ads.

Key Facts

CTV ad spending in travel/hospitality reached $2.1 billion globally in 2023
Travel/hospitality CTV ad spending grew 25% year-over-year in 2023
CTV ads achieve 70% higher completion rates than mobile video ads
Programmatic buying accounts for 85% of CTV ad transactions in this sector
Dynamic creative optimization is used by 60% of travel brands for CTV campaigns

Overview

Connected TV (CTV) advertising represents the evolution of television marketing, shifting from traditional broadcast to internet-delivered content on smart TVs, streaming devices, and gaming consoles. The travel and hospitality industry began adopting CTV advertising around 2018 as streaming services gained popularity, with early adopters like Marriott and Expedia testing the format. By 2021, the COVID-19 pandemic accelerated adoption as travel brands sought new ways to reach consumers spending more time at home. The global CTV advertising market for travel and hospitality grew from $800 million in 2020 to $2.1 billion in 2023, driven by increased streaming viewership and improved targeting capabilities. Major platforms like Roku, Amazon Fire TV, and Apple TV now offer specialized travel advertising solutions, while streaming services like Netflix and Hulu introduced ad-supported tiers in 2022-2023, creating more inventory for travel brands.

How It Works

CTV advertising for travel and hospitality operates through programmatic platforms that automate ad buying and placement. Brands upload video creatives (typically 15-30 seconds) to demand-side platforms (DSPs) like The Trade Desk or Google DV360, where they set targeting parameters including demographics, viewing habits, and travel intent signals. When a viewer streams content on a CTV device, real-time bidding occurs within milliseconds to serve relevant travel ads. Advanced targeting uses first-party data from hotel loyalty programs or airline apps, combined with third-party data like recent flight searches or destination interests. Dynamic creative optimization automatically customizes ads with real-time elements like hotel rates, flight prices, or package deals. Measurement occurs through attribution models tracking website visits, app downloads, or bookings within 7-30 days post-view, with advanced analytics providing insights into audience engagement and conversion paths.

Why It Matters

CTV advertising matters for travel and hospitality because it reaches high-intent audiences during premium viewing experiences when they're most receptive to inspiration. Unlike traditional TV ads, CTV provides measurable ROI with attribution tracking to actual bookings, helping brands optimize campaigns in real-time. The format enables personalized messaging at scale - a family planning a vacation might see Disney World ads while a business traveler sees hotel promotions. During recovery periods like post-pandemic travel rebounds, CTV campaigns helped airlines and hotels fill capacity quickly through targeted promotions. The immersive nature of big-screen video drives emotional engagement that increases brand recall by 40% compared to digital display ads, making it crucial for destination marketing organizations promoting tourism recovery.