The Complete Guide to CTV Ads and How to Advertise on CTV

ctv ads

Streaming television has fundamentally changed how people consume video content. It’s also revolutionized how businesses can reach their target audiences. CTV ads represent one of the most significant opportunities in digital advertising today. Yet many small businesses still don’t understand what connected TV advertising offers or how to get started.

If you’re wondering whether you should advertise on CTV, the answer is probably yes. The question isn’t whether CTV advertising works. It’s whether you’re ready to embrace a more sophisticated approach to video marketing. One that combines the emotional impact of television with the precision targeting of digital advertising.

Connected TV advertising isn’t just the future of video marketing. It’s the present reality for businesses that want to reach engaged audiences with measurable results. The companies that learn how to advertise on CTV effectively will have significant advantages over competitors stuck in traditional advertising approaches.

What Are CTV Ads and Why They Matter

CTV ads are video advertisements delivered through internet-connected television devices. This includes smart TVs, streaming devices like Roku and Apple TV, and gaming consoles connected to televisions. Unlike traditional TV commercials that broadcast to broad audiences, CTV ads can be precisely targeted to specific viewer segments.

The key difference between traditional TV ads and CTV ads lies in targeting precision and measurement capabilities. Traditional TV advertising relies on broad demographic assumptions about who might be watching specific programs. CTV ads leverage detailed viewer data to target people based on actual behaviors, interests, and demographics.

When you advertise on CTV, you’re reaching viewers who have actively chosen to watch specific content. They’re not channel surfing or having the TV on as background noise. This intentional viewing behavior creates higher engagement levels than traditional television advertising typically achieves.

CTV ads also provide detailed performance analytics that traditional TV can’t match. You can track not just how many people saw your ad, but whether they visited your website, called your business, or made purchases afterward. This attribution clarity makes it possible to calculate precise return on investment for CTV advertising campaigns.

The Growing Opportunity for CTV Advertising

Streaming viewership continues expanding rapidly while traditional TV audiences decline. More than 80% of US households now have at least one connected TV device. The average household uses multiple streaming services regularly. This shift represents a massive audience migration that savvy businesses are following with their advertising dollars.

The demographics of CTV viewers are particularly attractive for many businesses. Streaming audiences tend to be younger, more educated, and have higher household incomes compared to traditional TV audiences. They’re also more likely to research products online and make purchases through digital channels.

Advertising spending on CTV has grown exponentially in recent years. Industry experts predict this growth will continue as more businesses discover the advantages of connected TV advertising. The businesses that learn how to advertise on CTV now will be better positioned as competition for premium CTV ad inventory intensifies.

For small businesses, this represents a unique window of opportunity. CTV advertising is still relatively new, which means there’s less competition and lower costs compared to more established digital advertising channels. Early adopters can often achieve better results at lower prices than they’ll be able to access in the future.

How CTV Ads Differ from Other Video Advertising

CTV ads offer several advantages over other video advertising formats like YouTube ads, Facebook video ads, or traditional display advertising. Understanding these differences helps explain why many businesses are shifting budget toward connected TV advertising.

First, CTV ads appear on television screens rather than computer monitors or mobile devices. This larger screen format creates more impact and better brand recall compared to smaller screen advertising. The living room viewing environment also tends to be less distracting than desktop or mobile browsing contexts.

Second, CTV ads typically can’t be skipped like many YouTube ads. Viewers watch the complete advertisement, ensuring your message gets delivered fully. This complete viewing significantly improves message retention and brand awareness compared to skippable video formats.

Third, CTV ads benefit from the credibility and production quality expectations of television advertising. Viewers expect high-quality content on their TV screens. This expectation encourages advertisers to create more engaging, professional advertisements that perform better than typical digital video ads.

Finally, CTV ads integrate naturally into the viewing experience. They appear during logical content breaks rather than interrupting user activities like browsing or social media engagement. This natural integration makes CTV ads feel less intrusive than many other digital advertising formats.

Understanding CTV Advertising Targeting Options

One of the biggest advantages when you advertise on CTV is the sophisticated targeting options available. These go far beyond the basic demographic targeting of traditional television advertising. CTV platforms can target viewers based on detailed behavioral, geographic, and psychographic data.

Behavioral targeting analyzes what content viewers watch, how they interact with streaming platforms, and their viewing patterns. This data reveals interests and preferences that enable highly relevant ad targeting. A fitness equipment company might target viewers who regularly watch workout videos and sports content.

Geographic targeting for CTV ads can be extremely precise. Instead of buying ads for entire metropolitan areas, businesses can target specific ZIP codes, neighborhoods, or even individual households. This precision is particularly valuable for local businesses with defined service areas.

Demographic targeting combines traditional factors like age and gender with more sophisticated data about household composition, income levels, and life stage. This creates much more accurate audience profiles than traditional TV demographic estimates.

Interest-based targeting uses data about online behaviors, purchases, and content consumption to identify viewers likely to be interested in specific products or services. This cross-platform data integration enables targeting precision that would be impossible with traditional TV advertising alone.

Creative Considerations for Effective CTV Ads

Creating effective CTV ads requires understanding both television production standards and digital advertising best practices. The most successful CTV ads combine high production values with clear calls to action and measurable response mechanisms.

Video quality expectations for CTV ads are higher than most digital video advertising. Viewers expect television-quality production values when watching content on their TV screens. This means investing in professional video production, clear audio, and compelling visual storytelling.

Length considerations for CTV ads vary by platform and placement, but most range from 15 to 30 seconds. This limited time requires focused messaging that communicates key benefits quickly and memorably. Every second counts in CTV advertising, so eliminate unnecessary content that doesn’t drive toward your marketing objectives.

Call-to-action strategies for CTV ads need to account for the viewing environment. Viewers might not have easy access to keyboards or be ready to take immediate action while watching TV. Effective CTAs for CTV ads often include QR codes, easy-to-remember website URLs, or phone numbers that viewers can access later.

Brand consistency across CTV ads and other marketing channels helps reinforce messaging and improve overall campaign effectiveness. Use consistent visual branding, messaging themes, and tone across all advertising touchpoints to create cohesive customer experiences.

Measuring Success When You Advertise on CTV

CTV advertising provides measurement capabilities that far exceed traditional television advertising. Understanding these metrics helps optimize campaigns and demonstrate clear return on investment to stakeholders.

View completion rates show what percentage of viewers watched your entire ad. High completion rates indicate engaging content and good audience targeting. Low completion rates might suggest creative improvements or better audience targeting are needed.

Click-through rates measure how many viewers take immediate action after seeing your CTV ad. While not all CTV ads include clickable elements, those that do can track direct response rates similar to other digital advertising formats.

Website traffic attribution connects CTV ad exposure to website visits. Advanced attribution systems can track when someone sees a CTV ad and later visits your website from another device. This cross-device tracking provides more complete conversion path analysis.

Store visit attribution uses location data to measure whether CTV ad viewers visit physical business locations. This measurement is particularly valuable for local businesses wanting to drive foot traffic through CTV advertising.

Conversion tracking connects CTV ad exposure to actual sales, leads, or other business outcomes. This might include online purchases, phone calls, form submissions, or app downloads. Conversion tracking provides the clearest picture of CTV advertising ROI.

Budget Considerations for CTV Advertising

Understanding CTV advertising costs helps businesses plan effective campaigns within realistic budget parameters. CTV ad pricing varies significantly based on targeting specificity, audience size, competition levels, and campaign objectives.

Minimum budgets for CTV advertising have decreased significantly as the medium has matured. Small businesses can now launch effective CTV campaigns with budgets that would have been impossible just a few years ago. Many platforms allow CTV advertising to start with budgets under $1,000 per month.

Cost per thousand impressions (CPM) for CTV ads typically ranges from $10 to $50, depending on targeting parameters and audience quality. More specific targeting usually increases CPMs but also improves conversion rates, often resulting in better overall return on investment.

Geographic factors significantly impact CTV advertising costs. Major metropolitan areas with high advertiser competition typically have higher CPMs than smaller markets. Local businesses might find better value targeting their immediate geographic area rather than competing in crowded major market auctions.

Seasonal considerations affect CTV advertising costs and availability. Holiday shopping seasons, back-to-school periods, and other high-advertising times typically increase competition and costs. Planning CTV campaigns during less competitive periods can improve cost efficiency.

Platform Options for CTV Advertising

Multiple platforms and approaches exist for businesses wanting to advertise on CTV. Understanding these options helps choose the best approach for specific business objectives and budget parameters.

Direct platform advertising allows businesses to advertise directly through streaming services like Hulu, YouTube TV, or Paramount+. This approach provides access to specific content and audience segments but requires managing multiple platform relationships.

Programmatic CTV advertising uses automated systems to buy CTV ad inventory across multiple platforms simultaneously. This approach simplifies campaign management while providing access to broader audience reach and more sophisticated targeting options.

Demand-side platforms (DSPs) provide advanced tools for managing programmatic CTV advertising campaigns. These platforms offer detailed targeting options, real-time optimization, and comprehensive reporting capabilities for businesses with more complex advertising needs.

Full-service advertising platforms like iPromote combine programmatic access with expert campaign management and optimization. This approach provides CTV advertising capabilities without requiring in-house expertise or technical infrastructure.

How iPromote Simplifies CTV Advertising

Navigating the complexities of CTV advertising can be overwhelming for small businesses without dedicated advertising teams. iPromote addresses this challenge by providing comprehensive CTV advertising solutions through its partner network.

The platform combines programmatic access to premium CTV inventory with user-friendly campaign management tools. Partners can create sophisticated CTV advertising campaigns for their small business clients without needing extensive technical knowledge or large minimum budgets.

iPromote’s approach includes comprehensive targeting options, creative optimization tools, and detailed performance reporting. This enables partners to deliver enterprise-level CTV advertising results while maintaining focus on client relationships and strategic guidance.

The platform also provides ongoing campaign optimization and support to ensure CTV advertising campaigns achieve optimal performance. This includes real-time bid adjustments, audience optimization, and creative testing to maximize return on investment.

For small businesses working with iPromote partners, this means access to sophisticated CTV advertising capabilities that would typically require much larger budgets and technical teams to access independently.

Getting Started with Your First CTV Campaign

Launching your first CTV advertising campaign requires careful planning and clear objectives. Start by identifying specific goals for your CTV advertising efforts, whether that’s brand awareness, lead generation, website traffic, or direct sales.

Audience definition comes next. Use available customer data, market research, and platform targeting tools to identify the most valuable viewer segments for your business. Start with broader targeting for initial campaigns, then refine based on performance data.

Creative development should focus on high-quality video content that communicates your key message clearly and compellingly. If you don’t have existing video content, consider working with professional video producers who understand CTV advertising requirements.

Budget allocation should account for both media costs and creative development expenses. Plan to run campaigns long enough to gather meaningful performance data, typically at least 30 days for initial testing.

Campaign monitoring and optimization require regular attention to performance metrics and willingness to make adjustments based on data. Successful CTV advertising involves continuous testing and refinement rather than set-and-forget approaches.

The Future of CTV Advertising

CTV advertising will continue evolving as streaming adoption grows and technology capabilities improve. Businesses that establish CTV advertising competency now will be better positioned to capitalize on future opportunities and innovations.

Interactive CTV ads are emerging that allow viewers to engage directly with advertising content using their remote controls or mobile devices. These interactive elements create more engaging experiences and better conversion tracking capabilities.

Artificial intelligence and machine learning are improving CTV advertising targeting and optimization capabilities. These technologies enable more sophisticated audience identification and real-time campaign adjustments for better performance.

Cross-device integration is becoming more seamless, allowing CTV ads to coordinate with advertising on other devices and channels. This creates more cohesive customer experiences and better attribution across all marketing touchpoints.

For businesses ready to embrace the future of video advertising, learning how to advertise on CTV effectively isn’t just an opportunity—it’s becoming essential for staying competitive in an increasingly connected world.

Author

  • Kristine Pratt

    Kristine Pratt currently works as the Marketing Director at iPromote. Previously, she spent 6 years at the worldwide leader in SEO as it's Director of Marketing and in various content strategy roles. She's lead marketing teams big and small to accomplish KPIs that benefit the company. She has a Masters Degree in Communications and Leadership from Gonzaga University, and graduated from BYU with her undergrad in Broadcast Journalism. She's worked in television news, public relations, communications strategy, and marketing for over 15 years. She loves traveling, sports, and spending time with her family.

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