What is CTV advertising? How it works, why it wins, and how to launch a campaign

Connected TV (CTV) is changing the way brands reach audiences. With more people streaming content on smart TVs and fewer watching traditional broadcasts, marketers are moving their budgets to CTV — and seeing stronger results. In this article, we break down what connected TV advertising is, how it works, and why it’s becoming an essential part of the digital media mix.

“CTV ad spend is projected to exceed $40B globally by 2028.” (Source: EMARKETER)

What is CTV and how does it differ from OTT and linear TV?

Connected TV (CTV) refers to television sets that are connected to the internet, either directly or via external devices. These TVs allow users to stream digital content from platforms like Netflix, Hulu, and YouTube, bypassing traditional cable or satellite services.

CTV includes:

• Smart TVs (e.g., Samsung, LG, Sony)
• Streaming devices (e.g., Amazon Fire TV Stick, Apple TV, Roku)
• Gaming consoles (e.g., Xbox, PlayStation)

It’s easy to confuse CTV with OTT (over-the-top) advertising, but they’re not quite the same. OTT refers to the delivery method of video content via the internet, regardless of the device — think smartphones, laptops, tablets, or TVs. CTV is a subset of OTT, referring specifically to content streamed on a television screen via an internet connection.

To understand where CTV fits in, it helps to compare it to linear TV — the traditional model where content is broadcast at scheduled times across channels.

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While OTT covers the broader universe of streaming, CTV is where advertising becomes most impactful on the big screen—and most comparable to traditional television viewing.

Segmented TV

While CTV dominates in markets like the US, in Europe a large share of digital TV advertising runs through Segmented TV. Unlike CTV, where advertisers work directly with publishers, Segmented TV targeting relies on subscriber data from telecommunications providers.

This model involves three collaborators:

• Advertiser – supplies campaign objectives and first-party data
  
  
• TV channel – provides the broadcast inventory
  
  
• Telco provider – identifies the households watching via set-top boxes and provides targeting data

The telco first works with the TV channel to match viewing households, and only then can the channel collaborate with advertisers to activate first-party data from both sides.

Because data is being exchanged across multiple parties, a data clean room solution is ideal for enabling these collaborations securely. It allows audience building, targeting, and measurement without exposing personal information.

For telcos, Segmented TV also creates a new revenue stream: the ability to monetize subscriber data in a privacy-compliant way. For advertisers, it’s an opportunity to combine the reach of traditional broadcast with the precision of digital targeting.

Key takeaway: CTV combines the scale and visual power of television with the precision and measurability of digital channels.

How CTV advertising works

CTV advertising refers to video ads shown to viewers streaming content on internet-connected TVs. These ads are typically delivered through streaming apps on smart TVs or devices like Roku, Amazon Fire TV, Apple TV, or gaming consoles.

Unlike traditional TV ads, which are scheduled in advance for mass audiences, CTV ads are delivered dynamically, often through programmatic platforms, based on who is watching and when. 

This enables advertisers to target audiences with much greater precision, reduce wasted impressions, and track performance in real time.

Where CTV ads appear

CTV ads can be served across a wide range of ad-supported streaming platforms, such as:

• Freevee
• Pluto TV
• Hulu (ad-supported tier)
• Tubi
• YouTube on TV
• Live sports and FAST channels

These ads typically appear in similar placements to traditional TV:

• Pre-roll ads: shown before the content starts
• Mid-roll ads: shown during natural breaks in programming
• Post-roll ads: shown after the content ends
• Companion ads: shown alongside content (e.g., a banner while the show plays)

Some platforms are also enabling interactive or shoppable CTV ads, which let viewers engage using their remote or mobile device.

How CTV ads are bought and delivered

Most CTV advertising today is delivered via programmatic advertising platforms, which automate the buying and targeting process. Advertisers define their goals, budgets, and target audiences, and the platform handles the delivery across multiple streaming apps and publishers.

Programmatic CTV campaigns can be managed directly through a demand-side platform (DSP) like Amazon Ads or StackAdapt.

Why more brands are moving budget from linear TV to CTV

Advertisers are shifting budget from linear TV to connected TV (CTV) for one simple reason: CTV reaches more engaged viewers and drives better results.

Linear TV is no longer where most audiences spend their time. In fact, according to Nielsen’s report, streaming accounts for 44.8% of total TV viewership, surpassing the combined share of broadcast (20.1%) and cable (24.1%) for the first time ever.

Linear TV’s declining impact

While linear TV still offers reach, it comes with growing limitations:

• Limited targeting — demographic- or region-based targeting lacks precision
• High waste — advertisers pay to reach large swathes of uninterested viewers
• Minimal measurement — viewership doesn’t equal impact
• High cost of entry — upfronts and long-term planning cycles
• Ad fatigue — repeated exposure with no frequency capping

CTV solves these issues by combining the impact of TV with the precision of digital.

Why CTV performs better

CTV enables advertisers to:

• Target by audience, not just demographics — including behavior, location, and interest
• Optimize in real time — adjust bids, creative, or budgets mid-campaign
• Track measurable outcomes — from reach to conversions
• Optional use of first-party data for precision targeting

It’s not just theory. A 2025 report by INCRMNTAL—based on $2 billion in ad spend across 50+ brands—found that CTV generated 10× more conversions than linear TV, despite using just 60% of the media budget.

This shift reflects a broader move in strategy: brands now see CTV as a performance marketing channel, not just a tool for brand lift. With access to premium streaming inventory and visibility on the biggest screen in the home, advertisers get reach and accountability in one.

Key takeaway: The numbers are clear. CTV outpaces linear in both attention and performance, making it the smarter choice for many modern brands.

Key benefits of CTV advertising for marketers

CTV doesn’t just change where your ads appear, it transforms what your advertising can achieve. For marketers seeking performance, control, and reach, CTV offers a powerful alternative to traditional TV and a compelling complement to digital campaigns.

Here’s why brands are embracing it.

1. Target the right audience, not just the right time

CTV enables audience-based targeting using behavioral, contextual, geographic, and even customer relationship management (CRM)-based inputs. Instead of buying a time slot aimed at a broad demographic, marketers can reach specific viewers based on actual signals.

According to LG Ads’ 2025 report, campaigns that incorporate both CTV and linear TV with audience-first targeting deliver 3× more efficient reach than linear alone. Similarly, combining CTV with first-party data can reduce cost per unique reach by up to 47%.

This makes CTV ideal for brands that want exposure and relevance.

2. Reduce wasted ad spend

In CTV environments, impressions are more targeted, and frequency can be capped to avoid oversaturation. According to Innovid’s 2025 CTV Insights report, CTV accounted for just 38% of impressions but drove over 63% of attributable conversions across their cross-platform data set.

That means marketers spend less to reach more valuable audiences, and waste far fewer impressions than with traditional TV.

Learn more about how to reduce wasted ad spend with first-party data.

3. Deliver ads in premium, high-attention environments

CTV ads appear on the largest screen in the home, full-screen and often unskippable, making them more immersive than mobile or desktop formats. Mountain Research found that CTV commands a 70% higher attention rate than mobile and a 40% higher rate than desktop.

For brand campaigns, that matters: it’s not just if the ad was shown, but whether it was remembered.

4. Measure what matters in real time

CTV supports real-time campaign measurement across key metrics:

• View-through rates (VTR)
• Completion rates
• Incremental lift
• Post-ad conversions

Volvo saw a 35% increase in dealership visits by running interactive CTV campaigns that invited users to engage directly with the ad [Source: Marketing Dive].

5. Make faster, smarter optimizations

With CTV, advertisers can:

• Pause or adjust budgets mid-flight
• Test different creatives or offers
• Optimize delivery across different platforms or audiences

Flexibility like this makes CTV feel less like TV and more like a true digital channel.

6. Reach viewers when they’re actually watching TV

CTV brings advertising back to the living room without the noise of multitasking. According to BrightLine, CTV ads achieve an attention rate of 56.1%, compared to just 34.5% on linear TV. Mountain’s data also shows that interactive streaming ads increase brand recall by 36%.

With fewer distractions and more control over content, CTV is where engaged viewers are actually watching, and where brands can make an impression that sticks.

How to launch a CTV advertising campaign

Getting started with CTV advertising doesn't require a massive budget or a team of specialists. With the right strategy and tools, brands of all sizes can launch high-impact campaigns that rival or even outperform traditional TV buys.

Here’s a step-by-step guide to launching your first (or next) CTV campaign.

1. Define your objective

Start with a clear goal: are you looking to boost brand awareness, drive site traffic, increase conversions, or test a new market? Your objective will shape everything from your audience strategy to creative format and attribution method.

2. Select your platform or partner

Most CTV campaigns are executed through:

• Demand-side platforms (DSPs) like Amazon Ads or StackAdapt, which let you programmatically buy inventory across multiple streaming publishers

• Direct publisher partnerships with AVOD or FAST platforms such as Hulu, Roku, or Paramount, which allow for bespoke placements or content alignment

If you're using sensitive first-party data (e.g., customer email lists or purchase behavior), you can strengthen targeting and measurement by securely collaborating with first-party data providers via privacy-first clean rooms like Decentriq — especially useful in pre-campaign planning or post-campaign attribution.

They strengthen media-buying platforms by enabling:

• Audience targeting with compliant data
• Attribution using encrypted datasets
• Insights without exposing personal information

This allows brands to target with precision and accountability—without compromising user privacy.

When evaluating platforms, look at:

• Targeting capabilities
• Inventory access (e.g,. AVOD, FAST, live sports)
• Reporting tools and measurement transparency

3. Build your target audience

Use the targeting levers available to define who you want to reach. Options may include:

• Behavioral interest segments (e.g., fitness enthusiasts, gamers, travellers)
• Contextual signals (e.g,. streaming live sports or entertainment content)
• Geographic and time-based targeting
• Securely matched first-party data (read more about building first-party data insights without sharing data here)

4. Launch and monitor performance

Once your campaign goes live, monitor performance metrics in real time:

• View-through rate (VTR)
• Completion rate
• Unique reach
• Cost per completed view (CPCV)
• Incremental lift (if measured)

Adjust bidding, targeting, or creatives as needed. Some platforms allow mid-flight optimization, which is especially valuable during short windows like product launches or seasonal campaigns.

5. Measure outcomes and attribute results

Once your campaign has delivered, it’s time to move beyond basic performance metrics and understand what actually worked and why.

CTV platforms will show you indicators like view-through rate and completion rate. But for deeper insight, brands often use privacy-first data clean rooms to securely join first-party data with media logs, run incrementality tests, and measure outcomes across partners, all without exposing personal information.

The role of privacy in CTV: why secure data collaboration matters

CTV advertising thrives on data, but that data is becoming harder to access, share, and activate responsibly. With the decay of third-party cookies and increasing regulation around personal data, advertisers face growing pressure to find privacy-compliant ways to target and measure audiences.

That’s where data clean rooms come in.

Clean rooms allow advertisers and media partners to collaborate on data without exposing personally identifiable information (PII). For CTV, this unlocks several advantages:

• Use first-party data to build audiences across streaming platforms — without leaking sensitive information
• Run measurement and attribution analysis using encrypted data, without centralizing it in one place
• Maintain compliance with GDPR, CCPA, and similar frameworks while still delivering relevant, effective advertising

In a fragmented media environment, privacy-first infrastructure also enables brands to:

• Reduce reliance on opaque or black-box data solutions
• Build direct, trusted data relationships with publishers and platforms
• Future-proof their targeting and measurement strategy as ecosystems shift

The principle is simple: the more you can connect and activate valuable data without exposing it, the stronger your CTV campaigns become. But in practice, how you do this depends on the type of CTV provider you’re working with, which we’ll explore next.

How to improve CTV targeting with your first-party data

While some CTV providers have the infrastructure to directly onboard advertisers’ first-party data, many do not. This can make it harder for brands to bring their own customer insights into targeting and measurement.

The good news is, privacy-first solutions like data clean rooms make this possible — enabling advertisers to activate their own data while keeping it protected and maintaining a competitive edge.

The approach you take will depend on the type of CTV provider you’re working with. Two common scenarios are:

Case 1: Providers with their own first-party data and PII

Some providers — for example, subscription-based streaming platforms — have a direct relationship with their viewers. Customers sign up, log in, and the provider holds valuable first-party data, including PII.

In these cases, a clean room allows you to securely onboard your own data alongside the provider’s to enhance targeting and improve measurement, such as:

• Attribution of online/offline sales
• Measuring incremental lift
• Calculating unique reach across channels (CTV vs. linear TV)

Because CTV platforms often have high logged-in user rates, these metrics are far easier to compute than in traditional linear TV environments.

Case 2: Providers with partial data but no PII

Other providers — such as traditional TV channels with some online presence — may have limited first-party data from streaming viewers, but none from those watching via broadcast.

Typically, viewers watch the broadcast on a smart TV via a set-top box, in which case the telecom provider holds the subscriber data. This is the model used in Segmented TV, where the telco, the channel, and the advertiser must work together.

Because more stakeholders are involved, collaborations can become more complex. A data clean room is the most effective way to enable secure data matching, audience building, and measurement without exposing sensitive information.

Decentriq already works with a network of onboarded CTV publishers that advertisers can securely collaborate with — and activate campaigns on — without having to start from scratch. You can see the full partner network list here.

A privacy-safe path to smarter CTV targeting with Decentriq

Decentriq enables secure, privacy-first collaboration through confidential computing-based clean rooms—ideal for joining sensitive customer, purchase, or media data for targeting or measurement without exposing raw information.

The results: sharper performance, stronger compliance, and zero trade-offs.

For brands working with sensitive or siloed data, Decentriq offers a future-proof way to improve targeting, measure outcomes with confidence, and complement your broader CTV strategy.

Discover how our advertising data collaboration solutions can unlock your next campaign’s full potential!