Connected TV (CTV)

Connected TV (CTV) is transforming how audiences engage with content and how brands deliver their messages. This glossary provides clear definitions of key terms related to CTV advertising, technology, platforms, and measurement.

What is Connected TV? 

The term Connected TV (CTV) refers to any television set that can access the internet to stream video content, either through built-in smart TV features or external devices like Roku, Apple TV, or gaming consoles. CTV allows users to watch on-demand and live content via apps, making it a key platform for advertisers to reach viewers beyond traditional broadcast or cable.

How does Connected TV Work? 

Connected TV (CTV) technology delivers digital video content through televisions connected to the internet, allowing users to stream shows, movies, and advertisements via apps and streaming platforms instead of relying on traditional cable or satellite services. This shift provides a more flexible, on-demand viewing experience and enables advertisers to reach audiences more precisely.

Here’s how it works: 

1. A content provider (such as Netflix, Hulu, or Disney+) uploads video content to a streaming platform.
2. Viewers use Smart TVs or connected devices like Roku, Amazon Fire TV, or Apple TV, which are connected via Wi-Fi or Ethernet. 
3. When a user selects a show or app, the device sends a request to the platform’s servers. The video is then streamed in real-time back to the television. 
4. Viewers access content via installed apps, which send a request to the content servers. 
5. Many platforms support dynamic video ad insertion, which allows personalized ads to be shown based on user data, enhancing ad relevance and engagement.

What are the Most Used Connected TV Platforms?

Some of the most widely used Connected TV (CTV) platforms include Roku, Amazon Fire TV, Apple TV, Android TV (Google TV), and Samsung Smart TV. These platforms host popular streaming apps like Netflix, Hulu, Disney+, and YouTube, allowing users to watch content on demand. These platforms support targeted advertising, making them popular among marketers.

What is CTV Advertising?

Connected TV (CTV) advertising uses programmatic technology to deliver video ads through internet-connected TVs and streaming devices. It relies on tools like Demand-Side Platforms (DSPs) to purchase ad inventory and ad exchanges to enable real-time bidding and placement. This automation allows advertisers to target viewers more precisely based on behavior, demographics, or location.

CTV ads can appear as in-stream video ads, interactive overlays, or pause screen ads. As more viewers shift to streaming, CTV advertising offers brands a way to reach cord-cutters and deliver high-impact messaging. 

How are Connected TV Audiences Targeted?

Connected TV (CTV) allows advertisers to target audiences with precision using data-driven techniques. Unlike traditional TV, which targets broad demographics, CTV leverages first-party data, device IDs, IP addresses, and behavioral insights to deliver personalized ads. Targeting options include geography, age, interests, viewing habits, and even purchase intent.

Advanced targeting is made possible through programmatic platforms and partnerships with data providers, enabling brands to reach the right viewers at the right moment. This level of targeting improves engagement and helps advertisers optimize campaigns for performance and return on ad spend (ROAS).