What is CTV Advertising and How Does It Work? (2026 Guide)

Most TV ads still run without a clear link to outcomes. You can see impressions, but you can’t easily see what viewers do afterward. That gap makes reporting harder, slows down decision-making, and leaves you guessing about where to invest next.

Connected TV (CTV) changes that by bringing digital targeting and measurement to the biggest screen in the home.

But working with CTV raises real questions for many marketers:

• Which audiences should I focus on?
• How does CTV fit with channels like search, social, and online video?
• What should performance look like?
• And how do I build a campaign that drives measurable results?

This guide answers those questions. We’ll break down how CTV advertising works, why it’s booming, and how to build high-impact campaigns that convert.

Let’s start with the basics.

What is connected TV?

Connected TV is any internet-connected television used to stream video content on services like Amazon Prime. Some common CTV devices include:

• Smart TVs from manufacturers like Samsung or Sony that come with an operating system and preloaded apps.
• Set-top boxes or streaming devices like Roku that transform ‘dumb’ TVs into internet-connected devices that can access streaming content.
• Gaming consoles like the Xbox that allow users to stream movies, TV shows, and music in addition to playing video games.

What is connected TV advertising?

Connected TV advertising means showing ads to people who watch streaming content on internet-connected TVs, whether through smart TVs or devices like Roku and Fire TV.

Because CTV ads are delivered digitally, they offer several advantages over traditional commercials:

• Precise Audience Targeting: Reach specific demographics, interests, and viewing habits.
  
  
• Real Time TV Measurement: Track ad impressions, clicks, and conversions in real time.
  
  
• Cross-Device Retargeting: Re-engage viewers who have previously interacted with your brand online.
  
  
• Holistic Attribution: Gain a comprehensive understanding of how your CTV campaigns contribute to overall marketing goals.

As such, media buyers placing ads on CTV gain the ability to pinpoint relevant buyers and track viewer activity following exposure. This paves the way for more data-driven and personalized campaigns that drive business results.

While the definition above provides a high-level explanation of CTV, it is also helpful to break down how CTV differs from other TV environments and streaming formats.

CTV vs. linear TV

Linear TV delivers scheduled programming with a broad audience reach but limited targeting. CTV, on the other hand, delivers ads one household at a time, allowing advertisers to tailor messaging based on behaviors, interests, or past interactions.

What streaming platforms does CTV include?

There are three main types of streaming platforms that fall under CTV:

• AVOD (ad-supported video on demand) services like Hulu, Max with Ads, and Disney+
  
  
• FAST (free ad-supported streaming TV) platforms like Tubi, Pluto TV, and The Roku Channel
  
  
• Live-streaming CTV, such as YouTube TV, Amazon Prime’s NFL broadcasts, and Netflix’s growing lineup of live events

All of these can have a massive reach. For example, the biggest all-time live-streamed event drew over 108 million live global viewers. That’s a real-world proof point showing the scale that CTV can deliver when major events stream exclusively on connected platforms.

These environments give advertisers access to high-quality, brand-safe inventory and a broad reach across demographics and viewing behaviors.

How CTV views are measured

Because people normally stream on a shared device (like a TV), CTV ads often use household-level IP addresses, device graphs, and privacy-compliant data partnerships to understand who is likely watching. This helps advertisers deliver more relevant ads and connect TV exposure to actions taken later on phones, tablets, or laptops within the same household.

Taken together, these factors make CTV advertising both a continuation of traditional TV’s storytelling power and a significant leap forward in how campaigns are targeted, measured, and optimized.

OTT advertising vs. CTV advertising

CTV and OTT (short for over-the-top) are often used interchangeably, but a key distinction exists between the two:

1. OTT is the delivery method (streaming video over the internet).
   
   
2. CTV refers to a specific subset of devices used to access OTT content on a large screen (smart TVs, streaming devices, etc.).

So OTT (over-the-top) refers to the delivery of streaming content over the internet. CTV refers specifically to devices like smart TVs, Roku sticks, Fire TVs, Apple TVs, and gaming consoles that people use to access OTT content. In fact, 87% of US households with TVs have at least one CTV device.

All CTV is OTT, but not all OTT viewing happens on a television screen. Screen size matters because attention, co-viewing, and recall are significantly higher on TV screens than on mobile devices. 

CTV is thus a more premium subset of OTT that focuses on big-screen TVs where co-viewing is more common (resulting in more ad impressions) and viewers are more engaged. 

Media buyers need to understand this distinction. After all, a YouTube ad that plays while a user listens to music videos on their mobile device is not as valuable as a commercial that airs during a live broadcast of the Olympics.

7 benefits of CTV advertising in 2026

CTV offers all the benefits of TV advertising, combined with the precision targeting and measurement of digital media. Here are some of the many advantages of placing ads on streaming TV. Here’s a look at the key advantages.

1. Hypertargeted and localized

When running programmatic CTV campaigns, marketers can target specific audience segments. This replaces the spray-and-pray approach of linear TV with a much more precise strategy. 

CTV targeting can take many different forms. At Strategus, we’re proponents of layering first- and third-party data sources to build custom audiences for each campaign.

Check out our CTV targeting deep dive to learn more →

2. Personalized and relevant

In this way, CTV allows brands to reach the right people at the right time with the right message by customizing their creative based on the targeted customer segments. 

Say a tourism board was running campaigns to three key customer segments: ski and snowboard enthusiasts, outdoor adventurers, and luxury travelers.

The ad creative could be personalized as follows:

• Ski and snowboard enthusiasts: For this segment, the ad could showcase the most well-known ski resorts with an early bird promo for lift tickets.
  
  
• Outdoor adventurers: These ads might combine shots of breathtaking hikes, pristine lakes, and idyllic camping locations, with a call to action (CTA) directing users to the website for more information.
  
  
• Luxury seekers: For this segment, the creative could focus on luxury spas, gourmet dining experiences, five-star hotels, and exclusive VIP deals.

The result is more relevant and actionable ads on the biggest screen in the house.

3. Omnichannel Retargeting

Since CTV ads run in digital spaces, advertisers can reach the same viewers again on other devices. For example, a tourism campaign could follow up CTV ads with YouTube videos, Spotify audio ads, and Instagram posts.

This kind of full-funnel approach is rare in CTV, but it’s central to our strategy at Strategus. We use deterministic matching (powered by identity graph partners) to make sure we’re only retargeting people who’ve already seen a brand’s CTV ad. This keeps ads relevant and effective.

4. Cost-Effective and High-Performing

With CTV, media buyers only pay for ads that reach their desired audience. This eliminates wasteful ad impressions served to the wrong viewers, all while boosting performance with more relevant experiences.

Strategus Co-Founder Joel Cox explains:

“Programmatic advertising brings new capabilities to more mid-market companies who can now afford more precise targeting, and therefore more accessible budgeting and reach. The opportunities for more advertisers are democratized by new technology. 

We want to move the market more toward where it should go, where ads are targeted to individuals in the audience, who see ads that are relevant to them, as opposed to the old way, where ads are targeted more toward the content that people are watching. The data-driven approach makes so much more sense as the content is exploding with digital streaming over the internet. Serving relevant ads to the right people at the right time is where the advertising industry has wanted to go for generations.”

5. Real-Time Tracking and Multi-Touch Attribution

CTV gives marketers access to detailed data. This means you can see what happens after someone sees your ad, such as whether they make a purchase online, visit a store, or look up your product.

Need an example? The University of Washington worked with Strategus to boost ticket sales for its sports teams.

The campaign brought in $296,000 in revenue and gave the school clear insights they couldn’t get before.

Brian Bowsher, the associate athletic director, explains:

“It was always hard to track the impact of our ads that ran on ESPN or NBC Nightly News. Working with Strategus, we’re now able to report data showing how many people saw our spots, how many took the next step and went to our website, and what percentage of those engagements resulted in transactions. This has really helped quantify our ROI.”

6. Big-Screen, Multimedia Impact

Many of the advantages above can be attributed to CTV’s digital nature. But CTV also has something that other digital channels lack: Big-screen delivery to hyper-engaged viewers.

With sight, sound, and motion, CTV ads make a more memorable impact than static display ads or skippable YouTube ads. This is all the more true when they run during live or premium content like a sporting event or a season premiere.

7. Ongoing Optimization

CTV advertising is flexible and easy to update. But if you just “set it and forget it,” you’ll miss chances to improve. Taking a more hands-on approach helps you test what works and build better campaigns over time.

With detailed data on engagement and conversions, marketers can keep testing and adjusting to get better results. Of course, not everyone has the time or team to do this. That’s where a managed CTV services partner like Strategus can help by handling all the details for you.

So, while CTV provides you with the tools to keep improving, the real advantage comes from knowing how to utilize them. In the next section, we’ll break down how to choose the right CTV buying approach so you can decide what level of support your team actually needs.

How to choose between self-serve, programmatic, and managed-service CTV

Once you understand how CTV works, the next question is simple: How should you actually buy it? Most advertisers end up choosing between self-serve platforms, programmatic buying through a DSP, or a managed-service partner. Each option can work well, but the right fit depends on your team’s expertise, bandwidth, and performance expectations.

Self-serve CTV platforms

Self-serve platforms are often the easiest way to get started. They’re built for speed and simplicity, giving advertisers a straightforward dashboard to launch basic campaigns with minimal setup.

Pros

• Easy to spin up campaigns
• Full control over budget, bids, and pacing
• Clear workflows for small teams

Cons

• Limited access to premium inventory and advanced targeting
• Basic attribution, often restricted to platform-level metrics
• No expert optimization, which can lead to wasted spend or uneven performance

Self-serve tools work best for teams exploring CTV for the first time or running small, test-and-learn campaigns.

Programmatic CTV via DSP

Buying CTV through a demand-side platform (DSP) offers more power and flexibility. Advertisers gain access to broad inventory, enhanced targeting capabilities, and customized data integrations. But with that power comes complexity.

Pros

• Wide access to inventory across multiple publishers
• Advanced targeting options and data partnerships
• Ideal for in-house teams with strong programmatic experience

Cons

• Steep learning curve and time-intensive campaign management
• Requires specialists who understand bidding, frequency, identity, and pacing
• Attribution setup can be complex, increasing the risk of underperformance

DSP buying is best suited for larger teams that already manage programmatic display or video and have the talent to run CTV in-house.

Managed-service CTV (Strategus model)

A managed-service partner handles campaign setup, targeting, optimization, and reporting for you. This model blends programmatic scale with hands-on strategy.

Pros

• Expert-led optimization, targeting, and pacing
• Access to premium inventory and full-funnel attribution which is not available in many self-serve tools
• Light lift for your team, freeing you from daily campaign management

Cons

• Less DIY control 
• Requires close partnership and shared goals, and transparent reporting to keep everything aligned

A managed-service model fits teams that want strong performance without building a full programmatic operation internally.

How to buy CTV ads

You can buy CTV ad inventory in a few different ways, like through:

1. Direct sales
   
   
2. Self-serve DSP
   
   
3. Partnering with a managed service provider like Strategus 

While directly purchasing ad space takes a more content-specific approach akin to legacy TV, programmatic ad-buying with either a DSP or managed services provider allows media buyers to place ads on a per-viewer basis.

Almost 90% of CTV buys are transacted programmatically today due to the benefits of programmatic placement.

Here’s a closer look at each category:

How does programmatic CTV work?

If you go with a DSP or managed service provider like Strategus, your ads will be placed programmatically through real-time bidding. The process can be summarized in five steps.

1. A user settles in for their favorite show on a streaming app like Hulu, Tubi, or YouTube TV.
   
   
2. The app sends a bid request to a supply-side platform (SSP) looking for advertisers to compete for the ad spot. The request includes information about the user’s digital footprint, such as their viewing habits, demographics, location, and other relevant details.
   
   
3. An ad exchange connects the SSP with demand-side platforms (DSPs) to centralize and automate media buying across multiple sources.
   
   
4. A DSP or an ad network connects advertisers to the exchange, allowing them to set parameters for how they target ads, and then make purchases via real-time bidding.
   
   
5. In a split second, the highest bidder wins the ad slot, and the viewer is served a relevant commercial without any noticeable lag.

And while it sounds simple enough, don’t let this explanation lead you astray. The CTV ecosystem grows in complexity each day — with countless ad networks, DSPs, ad exchanges, and more vying for media buyers’ attention. 

That complexity also extends to how audiences are identified and matched.

Unlike display ads, which rely heavily on cookies and device-level identifiers, CTV uses a mix of IP-based householding, device graphs, and privacy-safe identity partners to understand who is watching. Because several people may share the same TV, CTV identity resolution focuses on linking a household to a set of likely viewers, then tying exposure on the big screen to actions taken later on laptops, tablets, or mobile devices. This household-level matching is what enables cross-device attribution.

CTV buying also differs from programmatic display or online video in one important way: inventory is far more premium and far more scarce. Every ad slot appears during professionally produced content with high viewer attention, so bids tend to be more competitive and rely more on audience quality than aggressive bid shading or volume tactics. As a result, successful CTV campaigns depend less on sheer scale and more on smart identity, thoughtful targeting, and ongoing optimization.

CTV attribution & measurement

One of the biggest advantages of CTV is finally being able to see what happens after someone watches your ad. Linear TV has always struggled here, as you could measure reach, but tying that exposure to real outcomes mainly was a matter of guesswork. CTV changes that by using digital signals to connect big-screen viewing with actions people take later on other devices.

A core part of this is view-through attribution (VTA). Because CTV ads aren’t clickable, VTA looks at whether someone who saw your ad later visited your website, searched for your brand, downloaded your app, or took another meaningful action. It captures natural behavior in a way that click-based models never could. Viewers watch an ad on TV, and when they’re ready, they follow up on a phone, tablet, or laptop.

CTV also supports incrementality and lift studies, which help you understand the true impact of your campaign. These studies compare households that saw your ad with a control group that didn’t. If the exposed group converts at a higher rate, that difference represents incremental lift—the impact your CTV ads created, not just demand that already existed. It’s one of the clearest ways to prove ROI.

Under the hood, CTV attribution works because of household-level identity resolution. Since multiple people often share a single TV, CTV doesn’t track individual users. Instead, it uses IP addresses, device graphs, and privacy-safe identity partners to understand which household saw the ad. From there, exposure can be matched to activity across phones, laptops, and tablets in the same home.

This leads to another major advantage: cross-device tracking. People naturally switch screens as they research, browse, and buy. CTV lets you follow that journey. Someone watches your ad, looks up your brand on their phone, compares products on their tablet, and checks out on their laptop. Cross-device measurement connects those dots, allowing you to see the full customer path.

These capabilities give advertisers access to a wide range of useful KPIs, such as:

• Impressions and reach
• Completion rates
• View-through conversions
• Website visits and product pageviews
• Add-to-cart or purchase activity
• Store visits or offline conversions
• Incremental lift metrics like new conversions or revenue

Together, these metrics bring digital-level clarity to TV. You can show real outcomes, justify your spend, and optimize campaigns with far more confidence than traditional television ever allowed.

How connected TV аudiences аre targeted

CTV targeting depends heavily on the ad tech stack you’re using. Some DSPs still rely on basic, prebuilt segments that only scratch the surface of who your audience really is. And when campaigns are paced through direct sales, targeting often becomes even more limited because you’re restricted to the publisher’s own data. That’s why the quality and depth of your targeting partner matter so much in CTV.

At Strategus, we take a layered, multi-signal approach designed to reach the right households with far more precision. 

Instead of leaning on generic segments, we build custom audiences using a mix of demographic, firmographic, behavioral, and contextual data. This gives advertisers a more complete picture of who they’re trying to reach and why that household is a strong fit for the campaign. 

• Demographic targeting includes factors like age, gender, income, family composition, and other household descriptors that shape purchase behavior
  
  
• Firmographic targeting serves B2B advertisers by filtering audiences based on industry, company size, revenue, job function, and workplace location
  
  
• Behavioral targeting looks at what people do, like what they browse, buy, watch, or research across devices
  
  
• Contextual targeting focuses on what people are consuming in the moment, aligning ads with relevant content or real-time search intent

Those foundational layers are then combined with CTV-specific tactics that make campaigns even more precise. These include:

• Website retargeting: Re-engage warm visitors and abandoned carts with big-screen visibility
  
  
• First-party data activation: Match CRM lists to household devices for personalized messaging
  
  
• Lookalike modeling: Expand reach by finding new audiences similar to your best customers
  
  
• Location-based retargeting: Reach people who visited your stores—or those of your competitors
  
  
• Contextual audiences: Target based on browsing behavior, search keywords, or page content
  
  
• ACR (automatic content recognition): Align ads with specific TV viewing habits and interests
  
  
• Linear TV extension: Extend the reach and frequency of your traditional TV buys
  
  
• Amazon data: Tap into purchase behavior to reach active shoppers with high intent

Together, these tactics create a targeting foundation that’s more accurate and actionable than what most programmatic channels can provide. 

How connected TV maintains privacy and compliance

CTV operates in a privacy-first environment, which means audience targeting and measurement rely on anonymized, household-level signals rather than individual user tracking. Instead of cookies or device-level identifiers, CTV uses IP addresses, device graphs, and encrypted IDs to understand which household viewed an ad without revealing who in the home was watching.

To ensure compliance with this process, CTV platforms and partners operate within strict data governance frameworks. 

Most audience data comes from opt-in, privacy-safe data partnerships, including ACR providers, retail media networks, CRM onboarding partners, and third-party data suppliers that adhere to standards such as SOC 2, CCPA, and GDPR. These partners supply anonymized audience attributes, enabling advertisers to reach relevant households without compromising user privacy.

Due to these constraints, the most effective CTV strategies strike a balance between precision and respect for consumer protections. This safeguards viewer trust while still enabling accurate attribution and targeting at scale.

CTV Marketing Best Practices for Driving Leads

CTV advertising sits at the intersection of linear TV and digital advertising, allowing marketers to reach engaged viewers in a targeted and measurable way. But you still need to approach it strategically to drive results

We’d recommend prioritizing the following best practices when getting started.

Technical best practices

A strong CTV campaign starts with clear goals and well-defined audience segments. Knowing whether you want to drive awareness, website visits, or in-store traffic shapes everything from targeting to measurement. Once your objectives are set, your campaign should support precise audience delivery by using layered targeting, household-level identity, and lookalike expansion when appropriate.

Technical execution is equally important. Frequency caps help prevent overserving the same households, while sequential messaging allows you to guide viewers from awareness to action by presenting ads in a planned order. Cross-device orchestration brings this full funnel together by reinforcing CTV impressions with follow-up messages across mobile, desktop, and social platforms.

CTV also benefits from continuous learning. Lift testing helps determine whether your campaign is producing incremental results, and ongoing optimization keeps pacing, engagement, and conversion signals aligned throughout the flight. The most successful CTV campaigns are managed actively rather than left on autopilot.

Creative best practices

Creative quality also has a significant impact on CTV performance. Ads should be designed for the big screen with clear branding, high-contrast visuals, and a single strong message. 

Ad length also matters. Fifteen and thirty-second spots tend to work best, but both should be focused, easy to follow, and not overly dependent on audio cues.

You should also plan to iterate on your creative. Testing different openings, calls to action, visuals, or product highlights can reveal which versions resonate with different audience segments. Tailoring creative based on targeting signals, such as adjusting visuals for specific interests or highlighting different benefits, helps your messaging land more effectively.

Finally, every CTV ad should give viewers a clear next step. Whether your goal is an app install, a purchase, or a store visit, use on-screen prompts, QR codes, or direct offers to turn attention into measurable action. Strong creative does not need to be complicated. It simply needs to guide viewers toward the outcome you want.

Why CTV is the future of TV advertising

Streaming keeps growing—U.S. adults now spend over 123 minutes a day on CTV.

Live sports, once the last holdout for cable, are moving to platforms like YouTube TV, Amazon Prime, and Netflix, driving even more cord-cutting.

At the same time, ad-supported streaming is the norm. Netflix, Disney+, and Max now offer ad tiers, while FAST services like Tubi and Roku Channel rely entirely on ads.

Viewers have already shifted. Now live sports are following. That’s why CTV ad spend keeps rising, while linear TV keeps shrinking.

Media Universe Cartographer Evan Shapiro explains:

“Media buyers are moving money away from non-digital platforms, where they are far more certain about the return on their marketing investment (ROMI). And, that movement is accelerating…

This was already happening before the writers' union shut down TV. But, when you add the strike, mix in the subscription apocalypse, sprinkle on the rise of FAST, add a dash of Bob Iger floating ESPN and Disney for sale, knead in YouTube’s acquisition of NFL Sunday Ticket, and bake it all at 450 degrees of shitty-ass measurement… You get a perfect recipe for the death of traditional media as we know it.”

Let Strategus be your CTV partner

With Strategus as your partner, you get the broad reach, data integrations, and expertise required to drive CTV results. Our combination of premium inventory and data-driven targeting ensures precise ad placement focused on your viewers, thus maximizing campaign results.

Some other advantages of working with us include:

1. Big Screen Focus

Our CTV-first strategy captures your audience’s attention on the largest screen in the household. Sight, sound, and motion bring your brand to life in a way that no other marketing channel can recreate.

2. Cross-Device Retargeting

We keep your audience connected across every screen by re-engaging them with follow-up ads across other devices, reinforcing your message and driving conversions.

3. Data-Driven Strategies

Our ecosystem of 200+ data providers ensures targeting and attribution like never before, enabling us to develop informed strategies and adapt on the fly based on what the data reveals.

4. Multi-Publisher Control to Manage Frequency

As a vendor-agnostic partner, we make it easy to reach your audience, regardless of what they’re tuning into — while also capping frequency and conducting measurements across the entire OTT ecosystem.

The results speak for themselves, which is why we have countless real-world success stories of agencies and brands that have worked with us to turn connected TV into a performance marketing channel.

Contact us today to get started → 

Frequently asked questions 

How much does it cost to advertise on CTV?

CTV ad costs vary based on targeting, inventory quality, and buying method. CPMs typically range from $20 to $50. Premium placements during live events or on top-tier platforms can cost more. Programmatic buying helps control costs by letting advertisers pay only for impressions that match their target audience.

How to advertise on CTV?

To advertise on CTV, choose a method: direct deals with publishers, self-serve demand-side platforms (DSPs), or managed service providers like Strategus. Define your audience, upload a compliant video creative, and set campaign goals. Programmatic platforms use real-time bidding to deliver your ad to the right viewers on smart TVs.

How is CTV measured?

CTV measurement includes metrics like impressions, completion rates, click-throughs, conversions, and view-through rates. Advanced tools also track offline actions like store visits and sales. Marketers often use multi-touch attribution and integrate first-party data to connect ad exposure with real business outcomes across devices and channels.

What types of advertisers benefit from connected TV?

Brands with broad or niche audiences, including ecommerce, automotive, healthcare, education, and local businesses, benefit from CTV. It works well for marketers who want measurable results, hyper-targeting, and a strong visual presence. CTV is especially effective for campaigns focused on awareness, consideration, or driving conversions.

How to implement CTV/connected TV for app businesses?

App businesses can use CTV to drive installs and engagement by targeting relevant audiences through behavioral or contextual data. Link your mobile measurement partner (MMP) with a DSP to track conversions. Use QR codes or short URLs in your CTV ads to drive direct app actions from viewers.

What are the best data sources for TV advertising?

Top data sources include first-party CRM data, website behavior, location data, purchase history, and ACR (automatic content recognition) from smart TVs. Advertisers also rely on third-party providers, such as Nielsen, Experian, or Amazon, to enrich audience segments and enable precise targeting across the programmatic TV ecosystem.

How to track TV advertising?

Track TV ads by combining impression logs with pixel tracking, unique URLs, QR codes, or coupon codes. Use attribution platforms to connect ad exposure to online and offline actions. For CTV, integrate DSP reporting with tools that track multi-device behavior, purchases, or in-store visits.

How do you start in CTV advertising?

Start by assessing your media mix and identifying where CTV fits in the funnel. Choose a DSP or partner with a managed service. Upload video assets, define audience segments, and launch test campaigns. Monitor performance, retarget across channels, and adjust creative to align with campaign objectives.

What challenges stand in the way of holistic ad measurement across linear and CTV?

The biggest challenges include siloed data, inconsistent metrics, and a lack of cross-platform identifiers. Linear TV lacks user-level targeting, while CTV operates in fragmented digital environments. Bridging these systems requires unified attribution tools and partnerships with vendors that can aggregate and normalize performance across both ecosystems.

What's the best CTV advertising and measurement?

Top solutions include The Trade Desk for programmatic buying, Innovid and Google Campaign Manager for cross-platform measurement, and Strategus for managed CTV services. These platforms offer advanced targeting, real-time optimization, and consolidated dashboards that help marketers manage performance and prove ROI across multiple screens.