A practical guide to connected TV—what it is, why it matters, and how to make it work with your existing media plan.
As of June 2025, streaming officially outpaced the combined share of broadcast and cable TV. This is an unsurprising reality, given the rise of streaming platforms and the increasing ownership of connected devices over the last decade. Today, 83% of U.S. households subscribe to at least one streaming service, and this number is still on the rise. On average, Americans spend over 3 hours streaming video, and by next year, more than 80 million will have cut the cord altogether.
This shift in viewer behavior isn’t just about where audiences are—it’s a signal that it’s time to rethink what “TV” really means. Connected TV (CTV) has moved from a future trend to a present-day necessity. This guide provides a foundational overview of the CTV landscape, including its definition, comparison to other formats, and strategies for marketers to capitalize on its growing presence in the media mix.
What is Connected TV (CTV)?
Connected TV refers to any television connected to the internet that streams content through apps. This includes smart TVs with built-in streaming platforms (such as Hulu, Disney+, and Netflix), as well as TVs connected to streaming devices like Roku, Apple TV, or gaming consoles.
While CTV refers to the device, the content streamed through it often falls under a related term: over-the-top (OTT).
Connected TV (CTV) vs over the top (OTT): What’s the difference?
To clarify the evolving terminology, let’s break down the difference between Connected TV (CTV) and over-the-top (OTT) video delivery: OTT is a delivery method, or if it helps, the “pipe.” It’s the streaming of video content over the internet rather than through a cable box. OTT can be watched on internet-connected devices, including smartphones, tablets, laptops, and connected TVs.
In short, all CTV is OTT, but not all OTT is CTV. Watching Hulu on your iPhone? That’s OTT. Watching it on your Roku-equipped living room TV? That’s both OTT and CTV.
Why CTV matters now
From live events to binge-worthy series, streaming has transformed how people consume video content. And as audiences increasingly cut the cord and shift toward streaming, marketers are following suit through CTV advertising. CTV ad spend is projected to grow 16.8% this year alone, fueled by the promise of combining the scale of linear TV with the precision and performance of digital. It offers a way to reach viewers on the biggest screen in the house in a context that mirrors the premium feel of traditional TV, but with the targeting and flexibility of digital.
For marketers looking to maintain relevance, reach fragmented audiences, and adapt to shifting media habits, understanding CTV isn’t just helpful—it’s foundational.
How marketers reach audiences on CTV—and how it compares to linear TV
With linear TV (traditional broadcast or cable television, where programming is scheduled and viewers tune in at set times), ads are typically purchased in bulk during specific programs or dayparts, targeting broad audience segments, such as Adults 18–49. Everyone watching that show at that time sees the same ad, regardless of their location, interests, or household demographics.
With CTV, marketers can take a more precise and data-driven approach to their advertising. Ads are delivered dynamically, meaning that different viewers watching the same content on different devices can be served unique messages based on who they are, where they are, and what’s relevant to them. This shift gives marketers more control over who sees their ads, and how often, while still benefiting from the immersive, full-screen experience that TV offers.
- Targeting: CTV enables far more granular targeting, including by geography, behavior, household demographics, and device type.
- Predictive CTV targeting: Predictive CTV targeting takes targeting one step further by analyzing thousands of audience and content signals in real time to determine which impressions are most likely to drive desired outcomes. These capabilities minimize waste and maximize the impact of every media dollar.
- Measurement: CTV provides insight beyond delivery or video completion rates (VCR). With CTV, advertisers can measure and optimize campaigns based on real-world outcomes. Moreover, CTV can be measured in conjunction with other campaign channels, providing a holistic and unified view of campaign performance.
- Flexibility: While linear often requires upfront buys and limited campaign changes, CTV can be planned and adjusted in real-time.
That said, CTV and linear are not in competition: they’re complementary. Marketers who utilize them together can achieve a broader reach, better frequency control, and increased campaign efficiency.
FAST, AVOD, and vMVPD: Three ad-supported streaming models
There are three types of ad-supported formats offered by streaming platforms: Free Ad-Supported Television (FAST), Ad-Supported Video On Demand (AVOD), and Virtual Multichannel Video Programming Distributor (vMVPD).
Free Ad-Supported Streaming Television (FAST)
These are linear-style channels streamed over the internet, where viewers tune into a live feed of scheduled programming. FAST access is often built into or pre-installed on smart TVs— think Pluto TV or the Roku Channel.
Ad-supported Video on Demand (AVOD)
This model allows viewers to choose what to watch, when they want to watch it, with ads included. Examples include Hulu (with ads), Peacock, and Tubi.
Virtual Multichannel Video Programming Distributor (vMVPD)
vMVPDs bundle live TV channels via streaming rather than a set-top box, recreating the traditional cable experience online. Subscribers get the same or similar lineup of broadcast and cable networks—complete with live TV ads.
These options all offer distinct viewer experiences and placement opportunities, allowing marketers to reach audiences at scale, often with more flexible and lower-cost inventory than traditional TV.
How marketers access CTV advertising inventory
As previously stated, CTV ads are delivered dynamically, meaning that two viewers watching the same show could see completely different ads based on their individual characteristics or location—even within the same household. This allows for greater control over targeting, ad creative, and pacing than is possible with traditional linear buys.
Marketers can access CTV inventory in two ways:
- Direct buying: Working directly with a publisher or platform to reserve inventory. This approach often provides premium placements but can come at a higher cost.
- Programmatic buying: Using automated platforms to bid on available inventory across multiple publishers. This offers greater scale, flexibility, and data-driven targeting.
Ad formats in CTV include standard 15-, 30-, and 60-second pre-roll or mid-roll ads, as well as interactive or shoppable units, depending on the platform.
Targeting options vary by provider but typically include household-level data, contextual signals, geography, and device type. As with digital advertising, the creative can be personalized based on these factors to improve its relevance.
How CTV measurement and attribution work
CTV measurement has shown significant improvement in recent years. Today, most platforms provide core metrics, including impressions (the number of times an ad is served), viewability (whether the ad is actually visible on screen), and video completion rate (the percentage of viewers who watch the full ad). These basics help marketers understand reach and engagement.
However, advancements in identity resolution and cross-device data enable marketers to go beyond these foundational metrics. Marketers can now gain a clearer picture of who they’re reaching—not just with CTV, but across channels—and how those impressions translate into premium real-world outcomes, such as sales lift, foot traffic, and more.
That said, measurement across CTV isn’t yet fully standardized, and challenges like data hygiene, platform fragmentation, and inconsistent methodologies remain—especially when trying to tie CTV performance to linear or omnichannel results. However, several tools and technologies are helping move the industry forward and make measurement more actionable:
- Automatic Content Recognition (ACR): Provides visibility into what’s playing on screen at the device level
- Clean rooms: Enable privacy-safe data collaboration between marketers and media partners
- Identity graphs: Helps link households, devices, and user behaviors to improve targeting and attribution
While the landscape is still evolving, marketers who prioritize measurement upfront and understand what to ask from their partners will be better positioned to optimize campaigns and prove their impact.
How CTV fits into a modern media mix and omnichannel strategy
CTV works best when it complements your broader media strategy. With the full-screen experience of TV combined with digital-style targeting, CTV can support both awareness and performance goals, helping you bridge any gaps across linear, digital, and social channels.
Retargeting
Take advantage of CTV’s ability to retarget audiences who’ve already interacted with your brand on other platforms. For example, someone who visited your website or added an item to their cart could later be served a brand ad on their smart TV—extending the message to a more immersive format and reinforcing recall in a lean-back environment. You can also retarget based on behaviors such as watching a previous ad to completion, viewing specific content genres, or engaging with social media campaigns.
Sequential messaging
CTV also supports sequential storytelling across channels. You could start with a shortened version of the ad on social media and follow up with a longer version on CTV. Alternatively, you could lead with a high-impact CTV impression and retarget on digital platforms with product- or offer-focused creative. Either way, CTV can help keep your message consistent, well-timed, and adapt your message to each screen’s strengths.
Omnichannel alignment
When planned thoughtfully, CTV helps bridge the gap between awareness, engagement, and conversion. It gives marketers a way to reach audiences who might be underexposed to (not seeing enough) ads on linear TV, or overexposed (are seeing too many) on digital, while offering better control over frequency, more consistent creative delivery, and clearer campaign measurement.
In short: CTV shouldn’t be leveraged in a silo. It can be an incredibly strategic layer that helps unify the media mix and bring your story to life across screens.
Building a strategic CTV strategy
Connected TV is no longer an emerging trend; it has become a mainstream phenomenon. It’s a core part of how audiences consume content. For marketers, it presents an opportunity to combine the reach of television with the precision and performance of digital.