Streaming Advertising on TV: 2025 Guide to Streaming Ads

Streaming now drives nearly 40% of TV viewership, with ad-supported HVOD and FAST platforms expanding inventory and precision targeting. Even live sports are moving to streaming, creating high-impact ad opportunities.

Winning on CTV requires more than repurposed TV spots, it demands programmatic strategy, custom creative, and the right partner. This guide shows you how.

What Is Streaming TV Advertising?

Streaming TV advertising means showing video ads to people while they watch TV through the internet instead of cable. These ads appear on smart TVs, streaming apps, or connected devices like Roku or Fire TV. It lets brands target specific viewers and track results more easily than traditional TV.

Also called CTV advertising, streaming TV advertising describes ads that play during video content that’s delivered over the internet — such as any commercial you’ve ever watched on Hulu, Sling TV, or a FAST service like Amazon Freevee.

Streaming TV ads now support both video-on-demand (VOD) content and linear programming, but they still differ from traditional TV ads in a number of ways. Let’s learn about it in detail.

How Is Advertising on Streaming TV Different From Traditional TV?

Advertising on streaming TV uses data to target specific audiences, not just broad demographics like traditional TV.

It runs on internet-connected devices, supports interactive formats like QR codes, and allows real-time tracking and optimization. Traditional TV offers reach, but streaming delivers precision, flexibility, and measurable performance across devices.

Benefits of Streaming TV Advertising

Let’s zero in on the benefits of CTV advertising:

1. Programmatic targeting: Unlike the spray-and-pray approach of traditional TV advertising, streaming lets marketers pinpoint their audience in a fully customized manner. Trying to reach foodies? With OTT advertising, you can serve commercials specifically to gluten-free, vegetarian, or keto viewers.
2. Measurement and attribution: The digital nature of internet-delivered TV provides marketers with access to a ton of data. In this way, streaming TV ads tie marketing dollars to quantifiable outcomes, providing insight into how many people made online purchases, visited a brick-and-mortar location, or researched the advertised products following ad exposure.
3. Full-funnel retargeting: It’s also possible to supplement streaming TV ad efforts with cross-device retargeting strategies that drive conversions across supplementary channels. For instance, John Doe might see a display ad for the same pair of Nike’s when he checks the weather on his laptop that evening, making the CTV campaign as close to clickable as possible.
4. Cost effective: TV advertising of yore was only feasible for big businesses with even bigger budgets. That’s not the case with streaming. These ads can be purchased on a per-viewer basis, making it an affordable channel for all kinds of companies. What’s more, marketers only have to pay for actual views using cost per mile (CPM) rates. In this way, streaming TV advertising brings small local businesses into the realm of TV advertising.

Why Is CTV Advertising Growing?

Streaming has shifted from ad-free to ad-supported. Platforms like Netflix, Disney+, and Amazon now offer cheaper, ad-funded plans. FAST services like Pluto TV and Tubi skip subscriptions entirely and run solely on ads.

The takeaway is that ad-supported streaming is the future, driven by cost-conscious viewers and new monetization strategies.

So what’s the source of this big shift toward streaming with ads? It comes to a number of factors:

1. Streaming fatigue: Consumers have grown sick of paying exorbitant prices for ten different services, resulting in churn as many cancel premium subscriptions in favor of cheaper (and sometimes free) ad-supported alternatives.
2. Economic pressures: Subscription video on demand (SVOD) services like Disney+ have wracked up billions of dollars in losses by prioritizing subscription growth over profitability. The economic pressures of 2023 have shifted this approach forcing some companies to move away from offering ad-free streaming services. By adding commercials, OTT platforms can reduce churn and increase cash flow.
3. Content bottleneck: The writers’ and actors’ guild strike has created a roadblock in new content production, making it even more difficult to justify paying premium-priced services when there's nothing new to watch. If all you’re watching is reruns, it makes a lot more sense to do so on free or cheap ad-supported video on demand streaming services than coughing up big bucks for ad-free viewing.

There’s also something to say for the improved experience of watching ads on streaming services. Take it from Eric John, VP of the Interactive Advertising Bureau’s Media Center:

“People don’t hate advertising. They hate irrelevant advertising."

When done right, streaming TV delivers pertinent ads that match the needs of individual viewers, creating a more enjoyable commercial break and overall experience. People are generally receptive to ads when watching streaming TV, especially if the streaming services with ads use precise targeting to align ads with the right audience.

What Streaming Platforms Serve Ads

Due to the growth of ad-funded monetization, the majority of streaming platforms serve advertisements today. The chart below groups some of the top services by category.

How to Advertise on Streaming Services

Advertising on streaming platforms like Hulu, Pluto TV, or Amazon Freevee isn’t the same as buying a TV spot. It’s faster, more data-driven, and more flexible. Here’s how to get started:

1. Choose the Right Streaming Ad Environment

Decide whether you want to advertise on:

• AVOD (Ad-supported Video on Demand) platforms like Hulu
• FAST (Free Ad-Supported TV) channels like Tubi or Pluto TV
• vMVPDs like Sling TV or YouTube TV

Each offers different inventory, audience types, and pricing models.

2. Select Your Buying Method

You can go two routes:

• Direct buys from platforms like Hulu for guaranteed placements
• Programmatic buying through a DSP or managed partner for flexibility, scale, and targeting precision

Programmatic is ideal for real-time optimization and cross-device reach.

3. Integrate First-Party Data

Use your own CRM, site traffic, or purchase data to target known audiences. This improves relevance and performance while protecting against signal loss from cookie deprecation.

4. Use Advanced Targeting Options

Streaming platforms support granular targeting by:

• Household demographics
• Viewing behavior
• Geography
• Device type

This helps ensure your ads reach the right people at the right time.

5. Track Performance Across Channels

Streaming campaigns don’t operate in a vacuum. Use attribution tools to measure lift in web visits, conversions, or in-store traffic after ad exposure. Then, compare it across your digital channels.

Best Practices for High-Performing CTV Campaigns

To drive performance on streaming TV, you’ll need more than just reach. Unlike traditional TV, success here depends on following these practices:

• Identify your audience and KPIs in advance: Because this medium allows you to target individual viewers and measure campaign performance, you’ll want to align on ideal customers and priority KPIs from the start. We’d recommend nailing down who your target audience is, what your objectives are, and how much budget you’d like to allocate to this segment.

• Create digital-first creative: Rather than running a generic awareness, it’s a good idea to use digital-first creative for these campaigns that drives response with a clear call to action. If that’s not feasible, it’s also possible to adapt standard TV assets with interactive overlays.

• Continuous optimization: Last but not least, you’ll want to test, test, test — and continuously optimize your campaigns based on the data. A “set it and forget it” mentality leads to missed opportunities and wasted spend when advertising on streaming TV. 

As you gain more insights, there are always opportunities to improve performance and better align your ads with the streaming content and your audience.

Obviously, this comes with additional resource requirements. For this reason, many brands and agencies lacking in-house expertise chose to enlist the help of a managed services partner like Strategus to extend their team.

Learn more about CTV best practices here.

Advertise on Streaming TV With Strategus

Running effective streaming TV ad campaigns is complex and requires dedicated resources. That’s why Strategus partners with agencies and brands to deliver high-performance CTV campaigns with measurable results.

As the only pure-play CTV managed service partner, we deliver effective campaigns that make the most out of your investment — backed by results you can see in real-time. By partnering with our team of experts, you’ll benefit from:

• CTV-first tactics: We specialize in CTV and take a CTV-centric approach to advertising through comprehensive campaigns that leverage the rest of the programmatic ecosystem to deliver results.
• Proven partnership: Our dedicated team of programmatic CTV advertising experts provides personalized strategies and hands-on execution, resulting in impactful campaigns that simplify the complexities of CTV.
• Measurable results: By leveraging our industry-leading attribution and measurement capabilities, you’re able to quantify ROI at every touchpoint and continuously optimize your campaigns based on real-time data.

So what are you waiting for? Find out how Strategus can help you deliver high-performance CTV campaigns with ease.

Contact us today.

Frequently Asked Questions

How Much Does It Cost to Advertise on Streaming Services?

Streaming ad costs vary based on targeting, platform, and inventory. Most platforms charge using CPM (cost per thousand impressions), typically ranging from $20 to $50. You only pay when your ad gets viewed. Smaller brands can start with budgets under $10,000, while national campaigns often exceed six figures.

How Do I Create TV Ads That Deliver Results?

Start by identifying your target audience and campaign goal. Then, craft short, engaging messages with a clear call to action. Use dynamic visuals, optimized audio, and brand consistency. Test variations to see what resonates. Always tailor content for streaming rather than repurposing generic broadcast creatives.

What's the Best Platform to Launch a Streaming TV Ad Campaign?

The best platform depends on your target audience and budget. Hulu offers premium inventory and high engagement. Pluto TV and Tubi provide scale at a lower cost. Roku gives strong device-level targeting. Choose based on your goals, creative format needs, and audience behavior across platforms.

How Can I Effectively Advertise on Emerging Streaming Channels and Devices?

Focus on audience data and platform trends. Use adaptable creatives that display well across devices like smart TVs, Roku, or mobile apps. Partner with a platform that supports real-time optimization. Monitor performance closely and adjust targeting, bidding, and creatives based on viewer behavior and conversion data.

How Are Hulu Ads Chosen?

Hulu uses a mix of viewer data, content relevance, and advertiser targeting preferences to match ads with users. The platform analyzes age, location, viewing history, and device type. Advertisers can layer in their own audience segments to refine reach and improve relevance during the ad auction process.

What Ad Formats Work Best for VOD in the US?

Short-form video ads between 15 and 30 seconds work best on VOD. Interactive overlays, QR codes, and sequential storytelling drive higher engagement. Non-skippable formats help with brand recall, while skippable formats encourage better user experience. Choose the format based on your campaign goal and placement.

Why Do Paid Streaming Services Have Ads?

Paid services like Netflix and Disney+ now offer lower-cost subscription tiers that include ads. This model helps them reduce churn, increase revenue, and attract price-sensitive users. It also allows advertisers to reach viewers who previously opted out of traditional ad-supported models in streaming environments.

How to Create Engaging Ad Content for Streaming TV?

Hook viewers within the first five seconds. Use high-quality visuals, clear messaging, and a strong call to action. Tailor content for each audience segment. Keep it short and mobile-friendly. Test multiple variations and refine based on performance data to improve viewer retention and campaign ROI.

What Types of TV Advertising Packages Are Available?

Advertisers can choose from fixed placements, impression-based buys, or programmatic packages. Options include geo-targeted local buys, national reach packages, daypart-specific bundles, and platform-exclusive placements. Some platforms also offer bundled CTV and mobile retargeting. Choose based on your campaign goals, reach requirements, and creative capabilities.

How Is the Rise of Streaming Impacting the Future of TV Advertising?

Streaming shifts ad budgets toward digital-first strategies. Brands now use data to target households, track performance, and optimize in real time. This increases efficiency and reach across devices. Traditional TV still offers scale, but streaming enables personalized, cost-effective campaigns that support full-funnel marketing goals.