CTV Advertising: Complete Guide to Connected TV Ads in 2026

# CTV Advertising: Complete Guide to Connected TV Ads in 2026

Connected TV (CTV) advertising combines the impact of television with the targeting and measurement of digital. As streaming viewership surpasses linear TV, CTV has become essential for reaching modern audiences.

What is CTV Advertising?

CTV (Connected TV) advertising delivers video ads through internet-connected television devices—smart TVs, streaming devices (Roku, Fire TV, Apple TV), and gaming consoles.

CTV vs OTT vs Linear TV

Why CTV Advertising?

The Shift to Streaming

• 85% of US households have CTV devices
• Average viewing time: 2+ hours daily
• Cord-cutting accelerating annually
• Younger demographics stream-first

CTV Advantages

CTV Ad Formats

Standard Pre-Roll

Length: 15 or 30 seconds Placement: Before content Typical CPM: $15-35

Mid-Roll

Length: 15-60 seconds Placement: During content breaks Typical CPM: $20-45

Pause Ads

Format: Static or video when user pauses Placement: On pause screen Typical CPM: $10-25

Interactive Ads

Features: QR codes, clickable elements Placement: Any position Typical CPM: $30-50+

Shoppable Ads

Format: Product showcase with purchase option Placement: Dedicated ad breaks Typical CPM: $35-60

CTV Targeting Capabilities

Household Targeting

• Geographic location
• Household composition
• Home ownership
• Income level
• TV viewing habits

Audience Targeting

• Demographics (age, gender)
• Interests and behaviors
• Purchase intent
• Life stages
• Psychographics

Content Targeting

• Genre (sports, news, entertainment)
• Specific shows/channels
• Content ratings
• Mood/sentiment
• Daypart (time of day)

Device Targeting

• Device type (smart TV, streaming device)
• Operating system (Roku OS, Fire OS)
• Screen size
• Audio capabilities

Major CTV Platforms

AVOD Platforms

Premium Streaming (Ad Tiers)

• Netflix (ad tier)
• Disney+ (ad tier)
• HBO Max (ad tier)
• Amazon Prime Video (ads)

DSPs for CTV

Buying CTV Inventory

Programmatic (DSP)

How it works:

• Bid on inventory via demand-side platform
• Set targeting, budget, frequency caps
• Real-time optimization

Pros: Scale, targeting, automation Cons: Less premium inventory access

Private Marketplace (PMP)

How it works:

• Negotiate deal with publisher
• Access premium inventory at set price
• Use deal ID in DSP

Pros: Premium inventory, fixed pricing Cons: Less flexibility, minimums

Direct/IO

How it works:

• Buy directly from publisher/platform
• Insertion order with specific terms
• Often includes added value

Pros: Best inventory, relationships Cons: Manual, less data

CTV Pricing

CPM Ranges by Platform

Factors Affecting CPM

• Content premium (live sports highest)
• Targeting specificity
• Time of year (Q4 highest)
• Audience demographics
• Ad format (interactive premium)
• Campaign size

CTV Measurement

Key Metrics

Attribution Methods

Website attribution: Track visits/conversions post-exposure

Foot traffic: Store visits from exposed households

Brand lift: Survey-based awareness/consideration

Sales lift: Match exposed households to purchases

Multi-touch: CTV as part of cross-channel journey

Measurement Partners

• Nielsen
• Comscore
• iSpot.tv
• TVSquared
• Samba TV
• VideoAmp

CTV Best Practices

Creative Best Practices

Grab attention in first 5 seconds

Design for the big screen (high resolution)

Include clear CTA (QR code, URL)

Brand early and often

Optimize audio (many watch with sound)

Test multiple lengths (15s vs 30s)

Targeting Best Practices

Start broad, narrow based on performance

Use frequency caps (5-8 per week max)

Exclude recent converters

Layer targeting (demo + interest + behavior)

Test content targeting vs audience targeting

Measurement Best Practices

Set clear KPIs before launch

Use control groups for incrementality

Allow sufficient flight time (4+ weeks)

Track full-funnel metrics

Compare to linear TV if applicable

Common CTV Challenges

Challenge 1: Fragmentation

Problem: Inventory across many platforms Solution: Use DSPs with broad access, or consolidate with major players

Challenge 2: Frequency Management

Problem: Same user sees ad across devices/platforms Solution: Use identity solutions, household-level frequency caps

Challenge 3: Measurement Complexity

Problem: Connecting TV exposure to outcomes Solution: Partner with measurement providers, use deterministic data

Challenge 4: Brand Safety

Problem: Ads appearing in inappropriate content Solution: Use verified inventory, content targeting, pre-bid filters

Key Takeaways

CTV combines TV impact with digital targeting

High completion rates make it effective for awareness

Start with AVOD platforms for scale and efficiency

Creative matters – optimize for the big screen

Measurement is evolving – use multiple methods

Frequency control is crucial for efficiency

Conclusion

CTV advertising has become essential for reaching streaming audiences. The combination of television's impact with digital's targeting and measurement creates unique opportunities.

Start with clear objectives, test across platforms, optimize based on data, and scale what works.

Ready to expand into CTV? Explore AdBid's multi-channel ad management →