CTV advertising: what it is and where small businesses can buy it

The definitions come from the IAB (Interactive Advertising Bureau), mainly its OTT Streaming Video Playbook (December 2019). Platform facts come from each platform's own pages, and each platform has its own guide on our site with the detail: YouTube ads on TV screens, Roku Ads Manager and Amazon streaming TV ads.

What CTV means

CTV stands for connected TV. The IAB defines it as "a television set that is connected to the internet via OTT devices or has built-in internet capabilities (i.e., a Smart Television)." So a CTV can be a smart TV with apps built in, or an ordinary TV with a streaming stick, box or games console plugged in. The IAB treats a smart TV as "a subset of Connected TV, usually with the streaming hardware and software built into the television, versus through an external device."

CTV advertising is the video ads that play inside the streaming apps on those screens: in breaks before or during a show, film or live event, and in some cases on the TV's home screen. Because the ad is delivered over the internet, it can be targeted and counted more like an online video ad than a traditional TV spot, while it is still watched on the big screen in the living room.

CTV vs OTT

The two terms are often used as if they meant the same thing, but in the IAB's terms one is the content and the other is the screen:

• OTT (over-the-top) streaming video is "content streamed over the internet to a connected device (primarily connected TV, as well as other devices) without the need for set top boxes or converters."
• CTV is the TV set itself, connected to the internet as described above.

The IAB playbook admits that "The exact definition of OTT streaming video is a subject of ongoing debate in the industry today." Some people count any streamed screen, including phones and laptops; the IAB's own definition focuses on the big screen. Platforms use their own words too: Amazon calls its product streaming TV ads, Roku says CTV, and Google Ads calls the device type TV screens. When you compare offers, check which screens a CTV or streaming TV buy actually includes, because some also deliver to mobile and desktop.

How CTV ads are bought

There are two broad routes.

Self-serve platforms. Some streaming platforms sell their own ad space through a self-service tool, where you set the budget, audience and video yourself. Roku's getting-started article describes Ads Manager as "Our self-service ad platform" and its Ads Manager page says you can "go live in minutes (no DSP fees)". Google sells TV-screen placements through ordinary Google Ads video campaigns, and Amazon's streaming TV ads page offers them in "both managed-service and self-service packages". These tools sell the platform's own inventory (and, in Roku's and Amazon's case, some partner apps), each with its own minimums and rules.

Programmatic and direct deals. Larger buyers use a demand-side platform (DSP) to buy across many publishers' apps in one place, or buy directly from a streaming service. Our programmatic advertising guide explains DSPs and deal types. The IAB's OTT video overview mentions "options to buy directly from OTT content providers". Its 2018 Advanced TV Targeting overview said "Use of automation (programmatic) exists largely in private marketplace (PMP) environments", meaning invitation-only deals between buyers and publishers rather than an open auction. This route usually goes through an agency or a DSP account and is built for larger budgets.

For a small business, the self-serve route is the realistic starting point: no DSP contract, and the platform handles placement.

Where a small business can buy CTV ads

Short summaries only; the linked guides have the specs, minimums and set-up steps.

YouTube on TV screens (Google Ads)

YouTube is watched on smart TVs, consoles and streaming sticks, and ordinary Google Ads video campaigns can reach those screens unless you exclude the TV screens device type. Google also sells placements on the Google TV home screen and on the YouTube TV live service. Our YouTube ads on TV screens guide explains the formats, skipping, QR codes and how the three products with TV in the name differ.

Roku Ads Manager

Roku's self-service tool runs ads on The Roku Channel and other ad-supported apps. Roku's getting-started article says "Ads Manager runs non-skippable CTV Ads in the US". Budgets, targeting, specs and the action ads text-message format are in our Roku Ads Manager guide.

Amazon streaming TV ads

Amazon sells video ads on Prime Video, Twitch, Fire TV Channels and third-party apps. Amazon says the ads are open to brands in the U.S. "whether or not they sell on the Amazon store". Placements, package minimums, specs and interactive formats are in our Amazon streaming TV ads guide.

Other streaming services

Many other streaming services sell ads, often through their own sales teams or through DSPs rather than a self-serve tool for small budgets. If a service does not offer self-serve buying, an agency or a DSP account is usually the way in.

Targeting

Because the TV is online, CTV ads can be aimed at households instead of whole TV audiences. The IAB playbook lists common options: demographics, location (country down to zip code), behaviour and interests, content and app, first- and third-party data, and cross-device retargeting. It also warns that "the narrower the target, the more difficult it can be to scale" and advises: "Always begin with clear campaign KPIs before determining targeting parameters." Each platform offers its own subset, so check the platform guide before planning an audience.

Measurement basics

TV has traditionally been measured with reach, frequency and gross rating points. The IAB explains that in streaming, "a metric is impressions (which enable confirmation of which households viewed the ad)", and adds: "Quartiles can be leveraged to determine how much of the ad was viewed, while video ad completion rates can measure the percentage of all ads that play through for their entire duration."

Two things are different from phone or desktop video:

• Several people may watch one ad. Google's co-viewing definition says that when "multiple people watch YouTube on a connected TV (CTV) device together and view an ad at the same time, it could lead to more impressions and reach for your campaign." Not every platform counts co-viewers, so compare reports with care.
• Viewers rarely click. A TV remote is not a mouse, so results are usually read through QR-code scans, visits to a dedicated landing page or offer code, brand lift studies, or sales over the campaign period rather than clicks.

The IAB also recommends that advertisers "Leverage frequency capping where possible from specific publishers or platforms", so the same household does not see your ad too often. Our frequency capping guide covers how that works in Google Ads.

Where to start

This is our own view, not guidance from the IAB or any platform:

• If you already run Google Ads video campaigns, look at how they perform on TV screens first; it costs nothing to check the device report.
• For a first dedicated TV test with a small budget, a self-serve tool such as Roku Ads Manager or YouTube on TV screens is easier to start with than a DSP.
• Make one video built for a big screen with the sound on: a clear brand in the first seconds, a 15 and a 30 second cut, and a QR code or simple web address for the next step.
• Decide before launch how you will judge it (QR scans, a landing page, branded searches or sales in the target area), because clicks will not tell you much.
• If your goal is to bring people to a local shop rather than build awareness, local search placements such as Apple Maps ads may fit better than TV.

For help planning video and TV campaigns, see our services.

Frequently asked questions

What does CTV advertising mean?

Video ads shown on internet-connected TVs (smart TVs, or TVs with a streaming device or console) inside streaming apps, rather than on broadcast or cable channels.

What is the difference between CTV and OTT?

In the IAB's terms, OTT is the streamed content delivered over the internet without a set-top box, and CTV is the internet-connected TV set it is watched on. OTT can also be watched on phones and computers.

Which platforms sell CTV ads to small businesses?

Self-serve options include YouTube on TV screens through Google Ads, Roku Ads Manager in the US, and Amazon streaming TV ads. Many other streaming services sell through sales teams or demand-side platforms.

How are CTV ads measured?

Mostly by impressions, completion rates and how much of the ad was watched, plus co-viewing on some platforms. Because viewers rarely click, results are usually judged with QR scans, landing pages, brand lift or sales.

Do I need an agency for CTV advertising?

Not for the self-serve platforms, where you set up the campaign yourself. Programmatic buying across many apps through a demand-side platform usually goes through an agency or a DSP account.