What is Connected TV?
Connected TV (CTV) refers to any television set or device connected to the internet that can stream video content. This includes smart TVs, streaming devices (like Roku, Apple TV, and Fire Stick), gaming consoles, and set-top boxes. Unlike traditional linear TV broadcast to all viewers simultaneously, Connected TV allows advertisers to reach audiences with targeted, measurable campaigns.
How Connected TV Works
When viewers watch content through streaming apps or services – whether that's Netflix, Disney+, YouTube, or ITVX – advertisers can display ads tailored to specific audiences. The technology uses data about viewing habits, demographics, and interests to serve relevant advertisements. Each impression is tracked and measured, giving advertisers detailed insights into campaign performance.
Connected TV vs. Linear TV
Linear TV broadcasts the same content to everyone in a region at the same time. Connected TV, conversely, delivers personalized content and ads on-demand. This shift matters because it mirrors how audiences actually consume television today – 40% of UK households now use at least one streaming service regularly.
Why Connected TV Matters for Advertisers
Precision Targeting: You can reach audiences by location, age, interests, income level, and even purchase intent – far more granular than traditional TV buying.
Measurable Results: Unlike linear TV's estimated impressions, CTV provides exact viewing data, click-throughs, and conversion tracking.
Cost Efficiency: You pay for actual impressions delivered to your target audience, reducing wasted ad spend on irrelevant viewers.
Premium Environment: Ads appear alongside high-quality, trusted content from major brands and streaming services, enhancing brand perception.
Types of Connected TV Advertising
Pre-roll Ads: Play before content starts (typically 5-15 seconds)
Mid-roll Ads: Interrupt content mid-stream, similar to traditional TV breaks
Post-roll Ads: Appear after content concludes
Pause Ads: Display when viewers pause playback
Practical Examples
A UK fitness brand launching a new protein shake could use CTV to target health-conscious viewers aged 25-45 watching fitness and wellness content. The campaign delivers ads only to this specific segment across streaming platforms, tracking how many viewers clicked through to the website or downloaded an app.
Alternatively, a holiday company might serve seasonal ads to affluent households watching premium drama series, appearing contextually relevant within their entertainment consumption.
Key Metrics in Connected TV
- Impressions: Number of ads served
- Completion Rate: Percentage of viewers who watch the entire ad
- View-through Rate (VTR): Portion of impressions that were actually viewed
- Cost Per Thousand (CPM): Price paid per 1,000 impressions
- Attribution: Ability to track whether an ad led to a website visit, app download, or purchase
The Growing Importance of CTV
As cord-cutting accelerates and audiences fragment across multiple streaming platforms, Connected TV has become essential for reaching modern viewers. Major brands now allocate significant portions of their video budgets to CTV campaigns, recognizing it combines the impact of television advertising with the precision of digital targeting.
Common Misconceptions
Many assume CTV is only for large brands with big budgets. Actually, programmatic CTV platforms now make it accessible to SMEs, with flexible spending and detailed performance data helping businesses of all sizes measure ROI effectively.