How do you choose a CTV advertising platform?
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Last updated: April 8, 2026
Key Facts
- CTV ad spending in the U.S. reached $25.9 billion in 2023, projected to grow to $40.3 billion by 2027
- Over 80% of U.S. households had at least one CTV device as of 2023
- Programmatic CTV advertising accounted for 65% of total CTV ad spend in 2023
- Roku held 49% of the U.S. CTV market share in Q1 2024
- CTV platforms typically offer targeting options including demographic, behavioral, and contextual targeting
Overview
Connected TV (CTV) advertising refers to video ads delivered through internet-connected television devices, including smart TVs, streaming sticks, and gaming consoles. The CTV advertising market emerged in the early 2010s with the rise of streaming services like Netflix and Hulu, but gained significant momentum during the COVID-19 pandemic when streaming viewership surged. By 2023, CTV had become a $25.9 billion industry in the U.S. alone, representing one of the fastest-growing segments in digital advertising. Major players include device manufacturers like Roku and Amazon (Fire TV), streaming services like Hulu and YouTube TV, and programmatic platforms like The Trade Desk and Google's Display & Video 360. The shift from traditional linear TV to CTV has been driven by changing viewer habits, with Americans now spending more time streaming than watching cable or broadcast TV.
How It Works
CTV advertising platforms operate through several mechanisms. First, they aggregate inventory from various streaming apps and services, then make this inventory available to advertisers through programmatic auctions or direct deals. The process typically involves: 1) Ad insertion where ads are dynamically placed into streaming content, 2) Targeting using first-party data from devices or third-party data providers to reach specific audiences, and 3) Measurement through pixels and device IDs to track impressions, completions, and conversions. Most platforms support both self-service buying through demand-side platforms (DSPs) and managed service options. Advanced platforms offer frequency capping, competitive separation, and brand safety controls. The buying process is often automated through real-time bidding, with ads served based on viewer demographics, viewing habits, and contextual relevance to the content being streamed.
Why It Matters
CTV advertising matters because it represents the convergence of television's reach with digital advertising's precision. Unlike traditional TV ads, CTV enables granular targeting to specific households and individuals, better measurement of ad effectiveness, and more efficient spending through programmatic buying. For advertisers, this means reaching cord-cutters and streaming audiences who are otherwise inaccessible through linear TV. The impact is significant: CTV campaigns typically achieve higher completion rates (over 95% compared to 70-80% for mobile video) and better engagement metrics. Applications range from brand awareness campaigns to direct response advertising, with platforms offering solutions for different objectives. The growth of CTV advertising is reshaping media budgets, with many brands now allocating 20-30% of their video ad spend to CTV, reflecting its importance in modern marketing strategies.
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Sources
- Wikipedia - Connected TVCC-BY-SA-4.0
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