What is CTV?

A few years ago, TV advertising meant buying broad reach and hoping the right people were watching. Today, your audience is still watching TV. They just are not watching it the way they used to.

They are streaming. They are skipping channels. They are watching across devices. And they expect relevance, not repetition. That shift is exactly why Connected TV has become one of the most powerful forces in modern advertising.

CTV sits at the intersection of traditional television storytelling and digital precision. It merges streaming behavior, first-party data, and measurable performance into a single channel. This article breaks down what is CTV, how it differs from OTT and linear TV, how CTV advertising works, what addressable advertising really means, and why CTV has become essential to a modern media mix.

Let’s start with the basics.

What is CTV?

Connected TV refers to internet-connected televisions or devices that stream content. This includes smart TVs as well as devices like Roku, Amazon Fire Stick, Apple TV, Chromecast, and gaming consoles.

To understand what is CTV in advertising, it helps to clarify how it differs from related terms.

OTT, or Over-The-Top, refers to the content itself that is delivered over the internet. Netflix, Hulu, Peacock, and YouTube TV are all OTT services. OTT describes how content is distributed, not where it is viewed.

Linear TV refers to traditional broadcast and cable programming that follows a fixed schedule. Ads are purchased based on time slots and programs, with limited targeting or measurement.

CTV is the device ecosystem through which OTT content is delivered. That distinction matters because CTV gives advertisers digital-style targeting, optimization, and measurement on the biggest screen in the home.

Marketers looking for a deeper comparison can explore OTT vs CTV to understand how each fits into a media strategy.

CTV advertising brings digital precision to television. So what is CTV advertising in practice?

Advertisers buy CTV inventory programmatically through demand-side platforms. Instead of purchasing a show or time slot, they bid on impressions tied to specific households or audience segments.

Ads are served to viewers who match targeting criteria, not just anyone watching a program. Campaigns can be optimized in real time based on completion rates, frequency, reach, and lift.

Common CTV ad formats include pre-roll, mid-roll, interactive units, and increasingly shoppable CTV experiences that let viewers take action immediately. CTV ad spend continues to accelerate. Industry forecasts project CTV ad spend to exceed $40 billion in 2026 as brands shift budgets away from linear TV.

Addressable advertising is one of the most powerful reasons CTV has transformed media buying.

Addressable CTV allows marketers to deliver personalized TV ads to specific households or audience segments rather than broad program placements. Instead of buying a time slot on a show, advertisers buy access to the right viewer using real data.

Modern addressable CTV targeting can include age, income, household composition, and geography, interests and lifestyle segments derived from first-party data, device type or streaming platform preferences, time-of-day targeting, and purchase intent signals.

For example, if a user recently searched for “best plant-based protein shakes,” that intent signal can be activated to serve a relevant CTV ad later that evening through data partnerships and predictive modeling.

Leading CTV marketplaces like Roku, Samsung Ads, and The Trade Desk allow brands to bid in real time on verified audience segments. This ensures efficiency, relevance, and reduced waste.

This approach aligns directly with Power Digital’s strength in cross-channel audience targeting and performance measurement.

As more advertisers ask what is CTV marketing, the answer becomes clearer through its benefits.

CTV offers precise and privacy-compliant audience targeting using household and contextual signals rather than third-party cookies. It delivers measurable performance metrics that go far beyond impressions. It extends reach to cord-cutters and cord-nevers who are invisible to linear TV. And it gives brands creative flexibility to test, learn, and iterate storytelling.

Unlike traditional television, CTV delivers both brand lift and performance outcomes in a single channel. Brands exploring omnichannel CTV for CPG brand awareness can see how CTV integrates with retail media, paid social, and digital channels to drive full-funnel impact.

As Joy Commodore, Group Director of CPG at Power Digital, puts it:

“The brands that succeed are the ones that take a step back and look at the full landscape. They invest in the right measurement tools, embrace a longer timeline for results, and understand that omnichannel success is about balance — not just one metric.”

Measurement is where CTV truly separates itself.

CTV performance can be evaluated through completion rates, incremental reach beyond linear TV, brand lift across awareness, favorability, and intent, cost per completed view, and conversion attribution across devices.

CTV data can be integrated with other digital channels to provide a full-funnel view of performance. This allows marketers to understand how TV exposure influences search behavior, site visits, and downstream conversions.

For a deeper dive, marketers should explore how to measure CTV brand lift and understand how incremental impact is quantified.

CTV continues to evolve rapidly. Shoppable and interactive CTV formats are closing the gap between awareness and action. AI-powered ad placement and creative optimization are improving efficiency and relevance. Cross-device retargeting allows brands to follow CTV exposure with paid search or social. Privacy-first targeting ensures durability as cookies continue to phase out.

Power Digital helps brands implement these advanced tactics through integrated planning and execution across channels, supported by expert paid media services.

CTV is no longer experimental. It is foundational. Connected TV brings together the emotional impact of television and the accountability of digital advertising. It reaches modern audiences, supports measurable outcomes, and integrates seamlessly into omnichannel strategies.

As more marketers ask what is CTV, the answer becomes simple. It is how modern brands connect storytelling to performance on the biggest screen consumers still love.

“CTV ads offer impactful, typically non-skippable ad messaging in a lower clutter environment.  More and more we have the ability to layer on 1P or 3P data to reduce wasted impressions and drive business results for our clients.” – Kate Palmer, Programmatic Senior Strategist at Power Digital

For brands ready to modernize their media mix, CTV is not optional. It is essential.