Definition
Connected TV (CTV) refers to any television set that can access the internet to stream digital video content. This includes Smart TVs with built-in internet connectivity, as well as TVs connected to external devices like streaming boxes (e.g., Roku, Apple TV), game consoles (e.g., PlayStation, Xbox), or streaming sticks (e.g., Amazon Fire Stick, Chromecast). CTV allows viewers to consume content on-demand and access streaming services such as Netflix, Hulu, and YouTube.
How it relates to marketing
CTV is a key component of digital advertising, enabling marketers to deliver video ads to audiences who consume content outside of traditional linear television. Unlike linear TV, CTV offers addressability, advanced targeting, and measurable performance. This shift has transformed TV from a mass-reach channel into a performance-oriented medium, often integrated into omnichannel marketing strategies. It allows marketers to serve different ads to different households watching the same content.
How to calculate Connected TV advertising metrics
CTV campaigns are typically measured using a combination of digital and TV-like metrics. Common calculations include:
- Impressions = Total number of times an ad is displayed on a CTV device.
- Completion Rate = (Completed Views ÷ Started Views) × 100
- Cost Per Completed View (CPCV) = Total Ad Spend ÷ Number of Completed Views
- Cost Per Thousand Impressions (CPM) = (Total Ad Spend ÷ Impressions) × 1,000
- Attribution Metrics (e.g., website visits, app installs) can be calculated using cross-device identity graphs and IP-matching methodologies.
How to utilize Connected TV
CTV can be used for a variety of marketing objectives including brand awareness, lead generation, and performance-based conversions. Common use cases include:
- Retargeting site visitors with sequential messaging across screens.
- Lookalike audience targeting using first-party data or third-party segments.
- Local or regional targeting for geofenced campaigns.
- Cross-channel integration with digital video, social, and display for consistent messaging.
- Incremental reach campaigns that extend TV reach beyond traditional cable audiences.
Compare to similar approaches
| Feature | Connected TV (CTV) | Linear TV | Over-the-Top (OTT) | Programmatic Video |
|---|---|---|---|---|
| Internet Required | Yes | No | Yes | Yes |
| Targeting Capabilities | Household-level, demographic, geo | Broad demographics, limited geo | Same as CTV | Advanced behavioral, contextual |
| Measurement & Attribution | Digital-like (clicks, views, visits) | Panel-based estimates | Same as CTV | Clicks, conversions, viewability |
| Ad Buying Options | Direct & programmatic | Upfronts & scatter market | Subscription & ad-supported | Real-time bidding (RTB) |
| Ad Skippability | Often non-skippable | Not applicable | Varies by platform | Varies by placement |
Best practices
- Use frequency capping to avoid oversaturating households.
- Leverage first-party data for audience targeting and lookalike modeling.
- Design creative specifically for TV screens, not simply repurposed from other formats.
- Incorporate QR codes or short URLs to drive conversions from the big screen.
- Use A/B testing to compare performance of creatives or audience segments.
- Measure incrementality to determine the unique lift from CTV versus other channels.
Future trends
- CTV programmatic adoption is expected to increase, providing greater automation and efficiency.
- Shoppable TV ads will become more prevalent, allowing viewers to take direct action via remote or mobile.
- Integration with retail media networks will expand, enabling commerce-driven targeting on the big screen.
- Increased data privacy regulations may impact deterministic targeting, driving adoption of probabilistic and contextual methods.
- Unified measurement frameworks across CTV and digital channels will improve cross-platform insights.
Related Terms
- Over-the-Top (OTT)
- Linear TV
- Programmatic Advertising
- Ad-Supported Video on Demand (AVOD)
- Demand-Side Platform (DSP)
- Addressable TV
- Video Completion Rate (VCR)
- Incremental Reach
- Cross-Device Attribution
- First-Party Data Targeting