How are CTV ads bought and sold?

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Last updated: April 8, 2026

Quick Answer: CTV ads are primarily bought and sold through programmatic platforms using real-time bidding (RTB), where advertisers bid on ad inventory in automated auctions. In 2023, CTV ad spending in the U.S. reached $25.9 billion, with programmatic transactions accounting for over 70% of this volume. Major platforms like The Trade Desk and Google's DV360 facilitate these transactions, targeting audiences based on data from sources like Nielsen and Comscore. The process typically involves direct deals for premium content and open auctions for remnant inventory, with prices often measured by cost per thousand impressions (CPM).

Key Facts

U.S. CTV ad spending reached $25.9 billion in 2023, growing 21% year-over-year
Programmatic buying accounts for over 70% of CTV ad transactions
Real-time bidding (RTB) enables automated auctions with response times under 100 milliseconds
Major CTV platforms include Roku (49.1 million active accounts), Amazon Fire TV, and Samsung TV Plus
CTV CPMs average $40-60, higher than traditional digital display ads

Overview

Connected TV (CTV) advertising represents the digital evolution of television marketing, enabling targeted ads on internet-connected television devices like smart TVs, streaming sticks, and gaming consoles. The CTV advertising market emerged around 2010 with the rise of streaming services like Netflix and Hulu, but gained significant momentum after 2015 as cord-cutting accelerated. By 2020, CTV had become a distinct advertising category separate from traditional linear TV, with the COVID-19 pandemic accelerating adoption as streaming hours increased 74% in 2020 alone. Today, CTV advertising operates within the broader programmatic ecosystem, leveraging the same infrastructure as web and mobile advertising but adapted for the television environment. The market has grown from $4.3 billion in 2019 to over $25 billion in 2023, driven by shifting viewer habits and improved measurement capabilities.

How It Works

CTV advertising transactions occur through several interconnected systems. First, publishers (streaming services, app developers, or device manufacturers) make their ad inventory available through supply-side platforms (SSPs) like Magnite or PubMatic. Advertisers access this inventory through demand-side platforms (DSPs) such as The Trade Desk or Google's DV360, where they set targeting parameters, budgets, and bidding strategies. When a viewer starts streaming content, an ad request is sent to an ad exchange, triggering a real-time auction where multiple advertisers bid simultaneously. The winning ad loads within the content stream, typically within 100-200 milliseconds. Targeting utilizes first-party data from streaming services, device-level data from manufacturers, and third-party data from providers like LiveRamp. Measurement combines traditional TV metrics (like gross rating points) with digital metrics (impressions, completion rates) through partnerships with companies like Nielsen and iSpot.tv.

Why It Matters

CTV advertising matters because it bridges the gap between traditional television's reach and digital advertising's precision, reaching cord-cutters who represent over 40% of U.S. households. For advertisers, CTV offers superior targeting capabilities compared to linear TV, with the ability to reach specific demographics, interests, and behaviors while maintaining television's immersive viewing experience. The format drives higher engagement with average completion rates exceeding 95%, compared to 70-80% for online video ads. For consumers, CTV ads fund free or reduced-cost streaming options while being less intrusive than traditional TV commercials, with typical ad loads of 2-4 minutes per hour versus 12-16 minutes on broadcast TV. The growth of CTV advertising is reshaping media budgets, with major brands allocating 20-30% of their video budgets to CTV, and accelerating the shift toward audience-based buying across all video formats.