Connected TV: The Key to Effective Advertising in the Streaming Era

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Research shows that the number of streaming platform users continues to grow each year—along with the share of those accessing content through Connected TV (CTV) devices like Smart TVs, game consoles, and streaming sticks. Notably, nearly half of subscribers (47%) say they’d consider cheaper, ad-supported subscription options. CTV use is rising across all age groups, even as traditional TV viewership declines.¹ ²

This shift in viewing habits opens new opportunities for advertisers to reach audiences directly on their preferred devices, with highly targeted ads based on demographics, interests, and viewing behavior. What’s more, CTV is often more cost-effective than traditional TV—making it a smart, efficient channel for building brand awareness.

¹ VideoTrack 8, Wavemaker

² Nielsen 2023, ATV in hours & minutes per day

What Is Over-The-Top (OTT)?

Connected TV is closely linked to Over-The-Top (OTT) — a term for delivering video content via the internet, bypassing traditional cable or satellite providers. While related, the two aren't the same. OTT refers to the method of content delivery; CTV refers to the internet-connected devices used to view that content.

Buying CTV Advertising

Unlike web or mobile ads, which are typically bought through open auctions, CTV inventory is mostly sold via reservation deals. This is due to limited inventory and its premium positioning. Tools like Display & Video 360 (DV360) enable programmatic buying on major streaming platforms like Netflix, Disney+, Hulu, Warner Bros. Discovery+, YouTube, and several VOD services. While availability may vary by region, more countries are being added regularly.

Want to learn more about inventory access via DV360? Get in touch with us.

YouTube on Connected TV

DV360 is the only demand-side platform (DSP) that lets you buy YouTube ad inventory on CTV devices—a channel that continues to see rapid growth. Ads can be purchased via open auction or Instant Reserve, which supports formats like Masthead and In-Stream (bumper, skippable, non-skippable).

A unique feature of YouTube on CTV is co-viewing: 48% of YouTube watch time on Smart TVs involves more than one viewer, according to Google. Co-viewing is tracked through real-time, population-level surveys and modeled across variables like time of day, location, and user demographics.

These insights let you better understand your audience, estimate total impressions, and increase reach. You can also benchmark your YouTube campaigns against other CTV and traditional TV efforts, using report templates that go beyond co-viewing to cover performance and optimization metrics.

Why Advertise on Connected TV?

1. Precise Targeting

CTV goes beyond traditional TV demographics. You can target viewers based on detailed data—like age, interests, behaviors, or even content preferences. Publishers also offer their own audience segments, such as “Top Shows” or “Top Audiences.” For example, a fitness apparel brand can target viewers who recently watched workout videos or searched for gym gear.

Source: Display&Video 360

2. Higher Engagement

CTV viewers are often more focused and engaged with what they’re watching. This attention carries over to the ads—especially when using interactive formats, like QR codes that drive instant action.

3. Data-Driven Optimization

Advanced measurement and attribution tools now available in the CTV space let you track performance and conversions with greater accuracy. These insights help refine strategy and improve ROI.

4. Cost-Effective Flexibility

CTV allows for real-time bidding on individual impressions. This level of control helps prevent wasted spend by targeting only relevant viewers—unlike traditional TV buys, which often include broader, less defined audiences.

5. Diverse Ad Formats

CTV supports various ad types—from interactive spots to branded content and personalized messages—giving you more creative freedom and opportunities to connect with your audience.

6. Cross-Channel Integration

CTV fits seamlessly into broader digital strategies. With tools from Google Marketing Platform—like DV360 for display and CTV, Search Ads 360 for search, and Campaign Manager 360 for centralized reporting—you can run unified, multi-channel campaigns that reinforce your message and build brand consistency.

7. Brand Safety & Transparency

CTV platforms offer robust brand safety controls. In DV360, for example, you can exclude specific content categories to ensure your ads appear in brand-appropriate environments.

📘 Download our guide: Best Practices for Connected TV Campaigns

In Summary

CTV is a fast-growing advertising channel that combines the reach of traditional TV with the precision of digital targeting. As streaming becomes the new norm, brands have a powerful opportunity to engage viewers on the big screen with personalized, measurable video ads.

CTV helps you reach the right people with compelling content—building brand awareness, strengthening market position, and driving results.

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