What is CTV Advertising?

Connected TV (CTV) involves a device that is connected to or embedded in a Smart TV that supports video streaming platforms, such as Hulu, Netflix, Amazon Prime, Disney+ or many others. These devices have pre-loaded and ready-to-watch video on-demand (VOD), that requires no download time on the part of the viewer. Today, there are more than 200 video-streaming services that are accessible through CTV.

This differs from linear TV, where a viewer tunes in to a TV program that is scheduled to air at a specific time and is broadcast by the original network, such as Showtime or CNN. Whereas with CTV, the viewing time is flexible and at the discretion of the viewer, often with a full season of a TV series pre-loaded.

CTV includes both streaming video and the digital advertisements that appear between or during these programs. Many video streaming platforms provide the option to pay a higher premium to access content uninterrupted by ads. According to a 2021 Deloitte digital media trends survey, 65% of respondents said they’re comfortable watching ads to eliminate extra subscription costs.

For advertisers, CTV poses a unique opportunity to target audiences that complement or overlap with linear TV demographics. Because CTV is connected to automatic content recognition (ACR) technology, brands looking to advertise on streaming platforms can enjoy ACR’s robust data collection, which they can gather by employing a trusted ad technology partner, such as a demand-side platform (DSP). This DSP gathers this data to inform your precise audience targeting goals. From this detailed audience data, you can expect increased conversion for your ad campaign, including when taking the campaign to scale.

The connected TV landscape presents a new opportunity in the world of advertising, as streaming becomes part of the regular video consumption mix for households nationally. The LG Ad Solutions survey in 2023 highlighted that 81% of CTV users are influenced by TV ads in their shopping decisions, and 63% often discover new brands and products through CTV ads. Additionally, 47% of CTV users have made a purchase after seeing a TV ad in the past three months, with most completing the purchase on their mobile devices. This astronomical rate of trust only means more opportunity for advertisers to invest their dollars into the CTV space and monetize on this trend.

Is connected TV (CTV) the same as streaming?

Contrary to popular belief, connected TV (CTV) and streaming are not interchangeable terms. Connected TV refers to a television — or device connected to a television — able to stream video content from the web. On the other hand, streaming refers to data or content that is transmitted through a continuous stream.

An iPhone, for instance, can be referred to as a streaming device. It would be wrong to call this device a connected TV, though, because it is not connected to a television. In other words, all connected TV devices stream video content — but not all streaming devices are connected TVs.

How can Simulmedia help you facilitate CTV advertising placements?

At Simulmedia, our TV+® planning and buying platform allows advertisers to craft target audiences and run personalized ad experiences that are also measurable, so every household receives a unique, tailored experience of your brand or product. Plus, our proprietary Cross Channel Insights Dashboard provides detailed information as to how your target audience is distributed across both linear TV and CTV, including the overlap of those audiences; viewing behaviors of each household; intel as to which networks, programs, and dayparts the user is most engaged with; and more.

Armed with this information, no prospect from your target audience will be left unreached through the use of advertising technology that allows you to confidently execute media buys across the entire linear and CTV landscape.