Connected TV Advertising · CTV Buying, Targeting & Measurement

Connected TV (CTV) refers to television content consumed via internet-connected devices rather than through a traditional broadcast or cable signal. This includes: smart TVs with built-in streaming apps; streaming sticks and boxes (Roku, Amazon Fire TV, Apple TV, Google Chromecast); and gaming consoles (PlayStation, Xbox) used for streaming content.

CTV advertising reaches viewers watching this streaming content — typically in non-skippable pre-roll or mid-roll formats that are served by the streaming platform. The critical distinction from digital video on desktop or mobile: CTV is a lean-back, living room experience on a large screen, with high viewer attention and no skip option in most premium streaming environments. Completion rates for CTV video ads are typically 90%+ — far higher than the 40–60% completion rates typical of skippable desktop or mobile video.

The CTV advertising ecosystem is more fragmented than desktop or mobile programmatic, because each streaming platform controls its own advertising infrastructure to varying degrees:

CTV advertising is accessed through: direct buys with streaming platforms (most premium inventory is accessed this way for major platforms); programmatic through DSPs with CTV inventory (The Trade Desk, Magnite/SpotX, and Amazon DSP have the strongest CTV supply); and specialist CTV-focused DSPs and networks.

CTV advertising is almost exclusively video-based — unlike desktop programmatic which spans display, native, and video. The standard CTV formats:

Pre-roll (15–30 seconds, non-skippable). The standard CTV format — a short video ad before streaming content begins. Non-skippable in most premium environments, driving 95%+ completion rates. The 30-second format mirrors traditional TV advertising, making it accessible to brands with existing TV creative.

Mid-roll (15–30 seconds, non-skippable). Ad breaks inserted during longer-form streaming content, equivalent to commercial breaks in traditional TV. Completion rates are slightly lower than pre-roll (85–90%) but still far above desktop video norms.

Interactive overlays. Available on some platforms — allows viewers to request more information, visit a website, or take an action using their remote or device. Click-through rates are lower than on desktop (CTV remotes are less precise than a mouse) but the engaged viewer context can drive meaningful response rates.

Pause ads. Displayed when a viewer pauses content — available on Hulu, Netflix (ad tier), and some other platforms. Non-interruptive; viewer-initiated; typically image or short video format.

CTV targeting differs from desktop and mobile programmatic in both the data available and the matching methodology. Most CTV environments are cookieless by default — streaming apps on TVs and devices do not use web cookies. Targeting in CTV relies instead on: IP address matching (the household's IP address is used to match to household-level audience data); device identifier matching (device IDs from connected TV platforms); and ACR data (Automatic Content Recognition — data from smart TVs that tracks what content the TV has displayed, enabling targeting based on TV viewing behaviour).

Audience targeting in CTV is household-level rather than individual-level — the TV in the living room may be viewed by multiple people. This makes CTV targeting coarser than desktop targeting but also more like traditional TV buying (where media plans have always been built on household-level demographic reach).

Geo-targeting in CTV is particularly effective because IP address geolocation is highly accurate at the city and postcode level for fixed broadband connections — the majority of connected TV viewing. This enables regional campaign targeting that was previously only achievable through regional TV broadcasting.

CTV is primarily bought through one of three routes: direct deals with streaming platforms (best for premium, guaranteed placements on specific streaming services); private marketplace deals through DSPs (programmatic access to premium streaming inventory with floor prices and brand safety guarantees); and open auction programmatic (available for some AVOD and broadcaster streaming inventory, typically lower CPMs and less premium environments).

The most sophisticated CTV buyers use programmatic buying through specialised DSPs — The Trade Desk, DV360, Magnite's DSP, and Amazon DSP — to access premium streaming inventory while maintaining programmatic targeting, measurement, and reporting capabilities. CTV minimum spends for direct platform buys can be high; programmatic routes enable smaller budgets to access CTV inventory that would otherwise require larger direct commitments.

CTV measurement is fundamentally different from performance digital channels. CTR is effectively zero for non-interactive CTV formats (no cursor, no click). The primary CTV metrics are: video completion rate (VCR — percentage of impressions where the video was watched to completion); frequency (how many times the same household saw the campaign, critical for reach and frequency planning); and brand lift (awareness, recall, and consideration changes among exposed versus control audiences, measured through panel-based research).

The measurement challenge unique to CTV is the cross-screen attribution problem: a user sees a CTV ad, picks up their phone, and visits the advertiser's website. The CTV impression and the website visit need to be linked — which requires cross-device identity resolution. IP address matching can connect household CTV viewing to same-household desktop/mobile web activity, but it cannot identify the individual.

CTV works best as a brand awareness and consideration channel — using TV-quality creative to reach audiences who are not reachable through linear TV or who have been underexposed by linear TV. Budget allocation considerations: CTV CPMs (£15–45 typically) are higher than most digital channels but lower than prime-time linear TV. Minimum effective frequency for CTV brand campaigns is typically 3–5 exposures per household over the campaign period — below this, the campaign may not generate sufficient awareness impact.

Creative requirements: CTV requires proper video creative — 15–30 second spots that communicate effectively without requiring interaction. Repurposing digital video creative designed for skippable formats (where the message must land in the first 5 seconds) for non-skippable CTV does not always work well. Where possible, CTV creative should be developed specifically for the lean-back, full-screen, high-attention CTV environment.

The attribution challenge unique to CTV is that television viewing and digital conversion happen on different devices. A user who sees a CTV ad on their living room TV, then searches on their phone and visits the advertiser's website, generates a touchpoint chain that crosses device boundaries. Standard digital attribution cannot link the TV impression to the downstream digital behaviour without cross-device identity resolution.

IP address matching is the most widely used approach for CTV-to-digital attribution: the household IP address used for streaming is matched to the IP address used for subsequent website visits. This is reasonably accurate for fixed broadband connections but fails for mobile data visits and has accuracy limitations when multiple households share IP addresses (apartments, offices). The match rate — the percentage of CTV impressions that can be linked to downstream digital behaviour — typically ranges from 40–65% in documented campaign measurement.

Identity graph-based attribution connects CTV viewing to digital conversion using ACR data (from smart TVs that track what is being displayed on screen) matched to email addresses, device IDs, or other identity signals. This provides more complete cross-device coverage than IP matching alone but requires the viewer's identity to be known to the measurement vendor across both TV and digital environments.

CTV is a lean-back, full-screen, sound-on environment — fundamentally different from the scrolling social media feed or the cluttered desktop display context. Creative that is effective in other digital channels does not automatically translate to CTV. The creative requirements:

Non-skippable format demands full story arc. Unlike skippable YouTube pre-rolls where the brand must communicate in the first 5 seconds, non-skippable CTV formats guarantee full viewing. This enables more sophisticated storytelling — but the ad must be genuinely engaging for 15–30 seconds, not just a 5-second hook followed by 25 seconds of information dump.

Large screen, high quality standards. CTV is displayed on 40–75" screens in living rooms, often in 4K. Creative quality standards need to match this environment — footage shot for social media at 1080p may look acceptable on a phone but appear low-quality on a 65" TV. Sound quality, colour grading, and production values matter more than in any other digital channel.

Verbal communication complementing visual. Television viewers are often multi-screening (phone in hand) or have the TV on in background. Key messaging should be communicated verbally (in the voiceover or dialogue) as well as visually, so the ad's core message is received even when the viewer is not fully attentive to the screen.

Clear brand attribution early and late. In a 30-second CTV spot, the brand should appear clearly within the first 5 seconds and prominently in the final 5 seconds — research from the Ehrenberg-Bass Institute on TV advertising effectiveness consistently shows that branding in the final 5 seconds is strongly correlated with ad recall.

Sources & Further Reading