Mastering CTV Advertising |TargetVideo

Connected TV (CTV) has quickly become a key channel for brands and advertisers as more viewers move from traditional TV to streaming platforms. And it’s no wonder! CTV advertising combines TV’s broad reach with the precise targeting of digital advertising — the perfect mix. 

For advertisers and brands looking to follow this industry shift, here’s my guide to CTV advertising — everything you need to know to get started. 

Why Advertisers Are Turning to CTV

For those unfamiliar with the term, CTV refers to TV sets that allow viewers to access the internet and stream video via apps and services. This includes smart TVs and devices like gaming consoles or streaming sticks. CTV advertising, then, means delivering video ads through these connected devices, and this advertising method has been steadily gaining momentum. In 2023, it was revealed that 92% of U.S. households were reachable by CTV programmatic advertising. By 2027, it’s predicted that 121 million U.S. households will have CTVs — such as smart TVs, streaming devices, or gaming consoles.

This opens up a massive opportunity for advertisers to reach engaged viewers in premium, brand-safe environments with advanced targeting and actual measurable results. At the same time, it signals a move away from traditional advertising as audiences shift to digital viewing and advertisers seek more accurate, data-driven results for their campaigns. To summarize, advertisers get growing reach, better performance tracking, and, consequently, more ROI. 

Advantages of CTV Advertising

CTV advertising combines behavioral and contextual targeting. This gives advertisers the tools to reach audiences based on demographics, interests, device type, and viewing habits. A skincare ad before a beauty tutorial or a tech spot ahead of a gadget review — it’s all about relevance and precision. But beyond the standard perks of digital advertising, CTV brings additional advantages that make it a valuable extension to any digital advertiser’s strategy, especially niche brands. So, let’s take a closer look at these key additions:

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Hyperlocal Targeting by IP Data

What makes CTV advertising go the “extra mile” in terms of audience targeting is its ability to use IP-based data. This allows brands to deliver personalized, geographically relevant ads at the household level. This is especially powerful for local businesses or region-specific campaigns, helping reduce wasted impressions and drive higher engagement. 

For example, a food delivery service can promote different restaurant options or limited-time discounts depending on the viewer’s city or neighborhood, making sure that the offer is both timely and accessible. While IP-based targeting isn’t as precise as mobile GPS, it remains highly effective for localizing campaigns and reaching the right viewers within defined geographic areas.

Higher Completion Rates

Video completion rates are typically higher on CTV than on mobile or desktop. This is because viewers are often more focused, watching content from the comfort of their couch rather than on the go. It also helps that a lot of CTV ads are unskippable, naturally increasing the chances of full ad exposure. This creates an ideal environment for delivering longer or more detailed messages without the risk of losing the viewer partway through. In fact, CTV ads as long as 75 seconds had an impressive 95.3% viewer completion rate worldwide in 2022 — a clear sign of stronger engagement.

Premium Content Environments

CTV ads are typically shown alongside premium, professionally produced content — on top streaming platforms, catch-up TV, and major broadcaster apps. That means your brand appears in a high-quality, brand-safe environment, far from user-generated content or low-quality content. And placing ads in premium environments makes your brand appear more valuable. For luxury, lifestyle, or high-consideration products, this kind of ad placement can have a real impact on how your brand message is perceived and received.

Types of Connected TV Ads

CTV ads can be interactive, skippable, and non-skippable. Interactive ads drive engagement through clickable links or QR codes. Skippable ads let viewers skip after a few seconds. In contrast, non-skippable ads require viewers to watch the full ad, usually 15–30 seconds long. All of these can be sorted out into the following ad formats:

Instream Ads: Pre-roll (before), mid-roll (during), or post-roll video ads (after) are shown within video content, similar to traditional TV commercials.
Non-linear Ads: Overlay ads (like banners or animations) that appear without interrupting the content.
Companion Ads: Supporting visuals shown alongside other ad formats to increase brand presence.
Display Ads: Static or animated banners placed on the CTV interface (e.g., home screen, menus).
Audio Ads: Sound-only ads for users streaming music or podcasts via CTV.
360° Videos: Immersive, interactive videos that allow viewers to explore different angles.
AR Ads: Augmented reality elements layered onto the screen for interactive brand experiences. 

For advertisers and brands, the wide variety of CTV ad formats opens up new creative and strategic opportunities. Whether your goal is to boost brand awareness with immersive formats like AR and 360° video or drive direct engagement through interactive or companion ads, CTV offers the flexibility to match your campaign objectives and audience behavior. Choosing the right mix ensures your message fits seamlessly into the viewing experience, without being ignored.

Common Challenges in CTV Advertising (and How to Overcome Them)

Although CTV may be tempting for many, the ecosystem still has some gaps to fill. Before making a full shift in strategy, advertisers and brands need to understand the potential challenges that come with relying solely on CTV. So, let’s take a look: 

Fragmented Streaming Landscape

The CTV landscape is highly fragmented. Content is spread across dozens of apps, platforms, and devices — from Roku and Fire TV to Samsung TV and Xbox. And each one of these platforms has its own technical standards, audience behaviors, and monetization rules, making it difficult for advertisers to scale campaigns effectively or maintain consistency across all devices.

How to overcome it:

Low Adoption of Ad-Supported Tiers

While AVOD (Ad-Supported Video on Demand) and FAST (Free Ad-Supported Streaming TV) are growing, many viewers still prefer premium, ad-free content. This limits the possible ad inventory for CTV campaigns, especially for brands looking to target specific audience segments at scale.

How to overcome it:

• Target hybrid streaming environments where both SVOD and AVOD coexist, such as Netflix and Disney+, which now offer ad tiers.
• Optimize creative and targeting strategies for FAST channels and niche AVOD services, which often offer loyal, high-intent audiences.

Measurement Limitations

CTV still lacks a unified measurement standard. Different platforms track different metrics (e.g., impressions, completion rates, reach). And many still rely on panel-based models or device-level data that may not fully reflect true viewer behavior.

How to overcome it:

Use multi-source attribution models that combine first-party data, pixel tracking, and third-party measurement tools.
Prioritize partners who offer transparent, real-time ad analytics and integrate with your preferred data platforms.

Your Ads Deserve Premium Placements — Partner Up with TargetVideo

TargetVideo offers advertisers access to a premium network of publishers with over 100+ million unique monthly users, covering a wide range of content segments. Our in-house editorial team produces contextually relevant videos across categories like sports, automotive, parenting, DIY, and health — creating ideal environments for impactful brand placements. 

Our advertisers can also choose from various instream and video seeding formats. These include the popular Matched InStream® and Hero Stories®, which integrate brand messaging with influencer-driven content. In addition, we support brands with end-to-end creative services, developing unique concepts and delivering tailored ad formats through our Brand Solutions offering. Get in touch with our sales team to learn more about our advertising solutions!

CTV Advertising FAQ