Connected TV (CTV) Advertising Guide 2026: Targeting, Measurement & Best Practices

Key Takeaways

• 88% of US households have at least one connected TV
• Streaming accounts for 43.8% of all TV viewing (up 10 points in 2 years)
• 72% of streaming time is with ad-supported content
• CTV ad completion rates reach 95.92% for 30-second ads
• CTV-exposed households convert 45% higher than unexposed

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Why CTV Advertising Dominates in 2026

The shift is complete. Streaming won.

The CTV Advantage

Benefit	Description

Massive reach	88% of US households
Engaged audiences	Large screen, focused viewing
Precision targeting	Digital-level targeting on TV
Real-time measurement	Track performance as it happens
High completion	95%+ for 30-sec ads
Premium environment	Brand-safe content

CTV vs. Linear TV Performance

Metric	CTV	Linear TV

Targeting precision	Household + individual	Broad demo
Measurement	Real-time	Post-campaign (delayed)
Completion rate	95%+	70-80% (estimated)
Cost efficiency	CPM $20-40	CPM $15-30
Attribution	Trackable to conversion	Modeled

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CTV Targeting Capabilities

Audience Definition

CTV targeting works through audience definition—advertisers define target audiences using multiple data signals that translate into technical identifiers like IP addresses and device IDs.

Targeting Types

1. Demographic & Geographic

• Age and gender
• Income level
• Life stage (young professionals, families, empty nesters)
• Geographic: DMA, local, ZIP code

2. Behavioral Targeting

• Content viewing history
• App usage patterns
• Purchase behavior
• Interest categories

3. Contextual Targeting

• Content genre
• Show/movie specific
• Daypart
• Device type

4. First-Party Data Targeting

• CRM matching
• Website visitors
• Customer lists
• App users

5. Retail Media Data

• Purchase history (Amazon, Walmart)
• Shopping behavior
• Brand affinity
• Category interest

Data Types: Deterministic vs. Probabilistic

Data Type	Example	Accuracy	Scale

Deterministic	Streaming service login	95%+	Lower
Probabilistic	"Likely pet owners" inference	70-85%	Higher

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CTV Ad Formats

Standard Video Ads

Pre-roll

• Before content
• Highest attention
• Best for awareness

Mid-roll

• During natural breaks
• Good engagement
• Risk of skip if too long

Post-roll

• After content
• Lower attention
• Lower cost

Advanced Formats

1. Interactive Ads

• Clickable overlays
• Product carousels
• Lead capture forms
• Engagement rates: 3-8%

2. Shoppable Ads

• QR codes for mobile purchase
• Voice-activated ("Alexa, add to cart")
• Remote commerce (click-to-buy)

3. Pause Ads

• Displayed when content is paused
• Non-interruptive
• Growing format

4. Dynamic Creative

• Personalized based on viewer data
• Location-specific offers
• Weather-triggered creative
• Time-of-day optimization

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Building Your CTV Strategy

Step 1: Define Clear Objectives

> "CTV lets you target viewers directly and track results. Before creating your ad, get clear on your goal."

Objective	KPI	Creative Focus

Brand awareness	Reach, frequency	Storytelling
Consideration	Engagement, website visits	Product features
Performance	Conversions, ROAS	Direct response

Step 2: Audience Strategy

Start broad, then refine:

Cast a wide net initially

Collect performance data

Identify high-performing segments

Shift budget to winners

Test new segments continuously

Step 3: Platform Selection

Major CTV Platforms:

Platform	Strengths	Best For

Roku	Largest reach, shoppable	Mass reach, retail
Amazon Fire TV	Amazon ecosystem, voice	E-commerce, retail
Samsung TV+	AVOD content, broad demo	Awareness
Hulu	Premium content, targeting	Brand safety
YouTube CTV	Scale, Google integration	Performance
Peacock	NBC content, sports	Premium audiences
Paramount+	CBS/Paramount content	Entertainment seekers

Step 4: Creative Requirements

Technical specifications:

• Resolution: 1920x1080 minimum (4K preferred)
• Aspect ratio: 16:9
• Length: 15, 30, or 60 seconds
• File format: MP4, MOV
• Max file size: Varies by platform

Creative best practices:

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Programmatic CTV Buying

How Programmatic CTV Works

> "75% of all connected TV advertising transactions occur programmatically in 2025, democratizing television advertising while improving results for advertisers of all sizes."

The process:

Advertiser defines audience in DSP

DSP bids on matching inventory in real-time

Winning ad served to viewer

Performance data returned to DSP

AI optimizes future bids

Buying Models

Model	Description	Control	Scale

Programmatic guaranteed	Pre-negotiated CPM, guaranteed inventory	High	Medium
Private marketplace (PMP)	Curated inventory, auction-based	Medium-High	Medium
Open exchange	All available inventory	Lower	Highest
Direct/IO	Traditional direct buy	Highest	Variable

DSP Options

Major DSPs for CTV:

• The Trade Desk
• DV360 (Google)
• Amazon DSP
• Xandr (Microsoft)
• Roku OneView
• Samsung Ads

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Measurement & Attribution

CTV Measurement Challenges

CTV measurement is complex due to:

• Cross-device behavior
• Household vs. individual viewing
• Walled garden data
• Online-to-offline attribution

Key Metrics

Delivery metrics:

• Impressions
• Reach (unique households/viewers)
• Frequency
• Completion rate

Engagement metrics:

• Interactive engagement
• QR code scans
• Website visits
• Search lift

Business outcomes:

• Conversions
• ROAS
• Brand lift
• Sales lift

Attribution Methods

1. Deterministic Attribution

• Device graph matching
• IP address matching
• Login-based tracking
• Most accurate, limited scale

2. Probabilistic Attribution

• Statistical modeling
• Pattern matching
• Better scale, less precision

3. Incrementality Testing

• Geo holdouts
• Matched market tests
• Gold standard for true lift

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CTV Optimization Tactics

1. Frequency Management

Optimal frequency depends on objective:

Objective	Recommended Frequency

Brand awareness	3-5x/week
Consideration	5-8x/week
Performance	8-12x/week

2. Daypart Optimization

Daypart	Viewer Behavior	Strategy

Morning (6-9am)	News, quick sessions	Awareness
Daytime (9am-5pm)	Background viewing	Lower priority
Primetime (7-11pm)	Focused viewing	Premium, performance
Late night (11pm+)	Individual viewing	Retargeting

3. Content Alignment

Match your brand to appropriate content:

• Genre targeting (sports, comedy, news)
• Content rating targeting
• Custom content inclusion/exclusion lists

4. AI-Powered Optimization

> "AI-powered optimization and targeting is shaping the future of CTV marketing. AI automatically optimizes bids, pacing, and creative delivery in real time."

Let AI optimize:

• Bid prices
• Budget pacing
• Creative rotation
• Audience weighting

5. Cross-Screen Coordination

CTV works best in combination:

• CTV for reach and brand building
• Mobile for retargeting and conversion
• Display for frequency and reinforcement

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CTV Performance Benchmarks

Average Performance

Metric	Benchmark

Completion rate (30s)	95%+
Click-through rate	0.5-1.5%
Conversion rate (exposed)	45% lift
CPM	$20-40
Brand lift	10-30%

By Industry

Industry	Typical CPM	Performance

Auto	$30-50	High consideration
CPG	$20-35	Broad reach
Retail	$25-40	Performance focus
Financial	$35-55	Qualified reach
Travel	$25-45	Seasonal

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Common CTV Mistakes

1. Treating CTV Like Linear TV

CTV requires digital optimization mindset—test, measure, iterate.

2. Ignoring Creative

The targeting is only as good as the creative. Invest in quality production.

3. Measurement Paralysis

Perfect attribution doesn't exist. Use directional data and incrementality tests.

4. Over-Relying on One Platform

Diversify across DSPs and publishers for best reach and negotiating leverage.

5. Neglecting Frequency Caps

Without caps, you'll waste budget showing ads to the same households repeatedly.

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2026 CTV Trends

1. FAST Channel Growth

Free ad-supported streaming TV (FAST) channels are exploding—lower CPMs, growing audiences.

2. Shoppable CTV Mainstream

Commerce directly on the TV screen becomes standard.

3. Improved Measurement

Cross-screen identity and incrementality measurement mature.

4. AI Creative Optimization

Dynamic creative optimization powered by AI becomes standard.

5. First-Party Data Integration

Advertisers increasingly bring their own data to CTV targeting.

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The Bottom Line

CTV advertising in 2026 offers:

Mass reach — 88% of US households

Premium engagement — Lean-back, focused viewing

Digital targeting — Precision on the big screen

Measurable results — Track to business outcomes

Growing inventory — More content, more opportunities

> "Over half of marketers worldwide say they'll increase CTV or OTT budgets this year, and 68% of US advertisers now call CTV a 'must-buy.'"

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