July 23, 2025

What Is Connected TV Advertising?

Published by
Vasilios Lambos

CEO @ Lambos Digital

What Is Connected TV Advertising?

In today’s media landscape, television is no longer just a box in your living room. It’s a dynamic, data-driven channel for reaching highly engaged audiences—and Connected TV (CTV) advertising is at the center of this transformation.

Whether you're a brand marketer, media buyer, or agency strategist, understanding how CTV works (and why it matters) is critical in 2025.

Connected TV Defined

Connected TV (CTV) refers to any television that can stream content via the internet, rather than through traditional cable or satellite. This includes:

  • Smart TVs with built-in apps like Netflix, Hulu, and Prime Video
  • Streaming devices like Roku, Amazon Fire TV, Apple TV, and Chromecast
  • Gaming consoles like Xbox and PlayStation used for video streaming

These platforms allow viewers to watch content from ad-supported services such as YouTube TV, Freevee, Pluto TV, Tubi, and Peacock, among others.

What Is Connected TV Advertising?

Connected TV advertising is the delivery of video ads through these internet-connected streaming platforms. These ads appear before, during, or after content on ad-supported streaming services (AVOD) or live-streaming channels and are shown on the largest screen in the household.

Unlike traditional TV ads, CTV advertising uses digital ad technology to offer:

  • Audience targeting
  • Real-time reporting
  • Campaign optimization
  • Cross-device attribution

It combines the impact of traditional TV with the precision of digital advertising.

CTV vs. Traditional TV: What's the Difference?

FeatureTraditional TVConnected TVDeliveryCable or satellite broadcastInternet streamingTargetingDemographic & location-basedBehavioral, household, interest-basedMeasurementRatings estimates (Nielsen)Real-time impressions & conversionsFlexibilityFixed buys & long lead timesDynamic, programmatic activation

CTV offers more control, transparency, and performance insights—which is why ad dollars are rapidly shifting from linear to digital video environments.

Why Advertisers Are Investing in CTV

  1. Cord-Cutting at Scale
    Millions of viewers have moved away from cable and now watch TV through streaming apps. CTV lets advertisers follow that audience shift with precision.
  2. High Viewability and Attention
    CTV ads are full-screen, non-skippable, and viewed in premium content environments—often with multiple viewers in the room.
  3. Advanced Targeting
    CTV platforms offer granular audience segmentation based on geography, household income, device ID, purchase behavior, and more.
  4. Measurable Results
    Advertisers can track campaign performance beyond impressions—including website visits, app downloads, and even retail purchases.
  5. Cross-Channel Integration
    CTV ads can be part of a larger omnichannel campaign, working alongside display, mobile, and search to influence the path to conversion.

Where CTV Ads Run

CTV ads can appear on platforms like:

  • Amazon Fire TV
  • Roku
  • Hulu (ad-supported tier)
  • Disney+ (with ads)
  • Freevee
  • Pluto TV
  • Tubi
  • Peacock
  • YouTube TV
  • Paramount+
  • And many others

These environments offer premium content, brand safety, and engaged viewership—making them ideal for performance- and brand-driven campaigns.

How to Launch a CTV Campaign

To get started with CTV advertising, you'll need:

  • A programmatic DSP (like Amazon DSP, The Trade Desk, or DV360)
  • Video creative (usually 15 or 30 seconds)
  • Defined target audiences and KPIs
  • Budget allocation for premium inventory (CPMs typically range from $20–$50+ depending on placement)

Many agencies and advertisers partner with CTV-specialized platforms to access negotiated deals, curated supply, and attribution tools.

The Future of CTV Advertising

CTV is no longer just a trend—it’s the new standard.

As more viewers migrate to streaming and more platforms launch ad-supported tiers, CTV will continue to attract brand dollars previously reserved for linear TV.

What sets CTV apart is its ability to reach, resonate, and measure—all in one channel.

Whether you’re a local business or a global brand, CTV gives you the scale of television and the control of digital.

Final Takeaway

Connected TV advertising is where performance meets storytelling—on the biggest screen in the house.

If you’re still relying solely on social, search, or display, now is the time to test CTV. It’s no longer just a top-of-funnel play—it’s a full-funnel force.

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