What Is Connected TV? How CTV Advertising Works (2026)
The MNTN Team | 15 Min Read
Quick Takeaways
What marketers need to know about Connected TV advertising.
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U.S. CTV ad spend could reach $38 billion in 2026.
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CTV targeting uses location, behavior, interests, demographics, and customer data.
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Real-time reporting connects TV exposure to visits, conversions, and ROAS.
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Ad-supported tiers and FAST services expand inventory across streaming platforms.
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Strong creative, frequency controls, and optimization improve results over time.
TV isn’t what it used to be, and that’s unlocking massive opportunities for performance marketers. The U.S. market is expected to direct $38 billion to CTV advertising in 2026. That scale puts the television screen firmly in the performance mix, with digital-style audience controls and measurement.
In this guide, we’ll break down what CTV advertising is. We’ll also cover how it works and key reasons it’s become a core part of the modern marketer’s toolkit. It doesn’t matter if you’re launching your first TV advertising campaign or trying to scale; here’s what you need to know to make Connected TV work harder for your brand in 2026.
What Is Connected TV?
Connected TV is a television set that streams video over an internet connection. Viewers can connect through built-in smart TV features or add-on hardware such as streaming sticks, gaming consoles, and set-top boxes.
Internet connectivity expands the viewing menu well past scheduled broadcast programming. Audiences can watch streaming services, on-demand video, and internet-based apps.
What Is CTV Advertising?
CTV advertising is the delivery of audience-specific advertisements during streaming programming. You can reach households that have moved away from cable (aka cord-cutters) while applying the audience controls common to digital advertising.
The viewing setup determines where a CTV ad appears. Because there are so many devices out there these days, ads may run in a smart TV app or during a stream opened through Roku, Apple TV, or a gaming console.
But CTV isn’t the only thing you should know. Several other TV advertising terms are often thrown around alongside CTV, but they differ slightly in meaning. Let’s take a look.
TV Advertising Terms, Mapped
These terms overlap, but each answers a different question: how video arrives, where it appears, how audiences are selected, or whether programming follows a schedule.
CTV Advertising
Streaming video ads viewed on internet-connected television screens. CTV sits within OTT advertising and supports performance-focused targeting and measurement.
Addressable TV Advertising
Addressable TV advertising uses audience data to deliver different messages to selected households across pay TV, CTV, and other streaming environments.
OTT Advertising
OTT advertising covers video delivered through the internet, whether viewers watch on a television, smartphone, tablet, or desktop computer.
Linear TV Advertising
Linear TV advertising places ads within scheduled broadcast or cable programming, typically with broader targeting and less granular measurement.
Benefits of CTV Advertising
Where to begin? The advantages of Connected TV advertising are numerous, and more and more advertisers are tapping into them every day. Here are just a few:
1. Precision Audience-Based Targeting
Rather than buying against broad programming assumptions, advertisers can build audience groups using first and third-party signals. These can range from interests and individual behaviors to demographic traits. In fact, 76% of marketers say CTV provides better audience targeting than traditional linear TV (and we agree).
2. Show Up in Premium Content
CTV ads run alongside professionally produced, long-form programming in a relaxed, lean-back environment. That gives your message room to land on the biggest screen in the house. It also boosts your brand’s credibility when viewed alongside premium content on major networks.
3. High Video Completion Rates
CTV gives each spot a stronger chance of holding attention throughout the full message. Industry benchmarks put the average CTV video completion rate at around 95%. In other words, your complete story is much more likely to land on the big screen.
4. Accurate, Real-Time Measurement
A real-time view of ROAS, revenue, site visits, and cross-device conversions gives marketers ample evidence to adjust campaign performance as it develops. And that visibility matters. In 2025, nearly 47% of U.S. brand and agency marketers named attribution and measurement as a leading investment priority.
5. Automated Campaign Optimization
AI-powered automated optimization reduces the need for constant hands-on changes while helping budgets work more efficiently. It’s one reason CTV can generate significantly stronger conversion performance than linear television. In some cases, up to 10x higher.
How CTV Campaigns Work
TV advertising used to be intimidating. Not anymore. Getting started is easy if you follow these five simple steps.
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Build Your Audience
Use first-party data or provider-supplied segments to define high-intent audiences. Retarget site visitors to move them closer to conversion.
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Choose the Budget and Objective
Set the campaign goal, budget, and start date. Automated optimization adjusts bids to find premium inventory suited to your targets.
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Upload or Build Your Creative
Upload your video or pull in assets from connected storage, then confirm everything meets CTV specs. Need a fresh version? Use built-in tools to make new creative from what you already have.
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Launch Your Campaign
Deploy ads across CTV channels. Add companion ads on other devices to extend reach and reinforce your big-screen message.
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Report in Real Time
Review site visits, revenue, ROAS, conversions, and cross-device attribution as the campaign runs. Ride the winners and use the results to improve efficiency.
Where Are Connected TV Ads Shown?
Connected TV ads are shown on both paid and free ad-supported streaming networks and apps, which are accessed through smart TVs and other connected devices. The networks and apps are household names—think ESPN, MTV, ABC, and CBS—while the devices are in almost every living room in America (Apple TV, Roku, PlayStation, etc).
Nearly every major streaming service offers ad-supported tiers. This wasn’t always the case, but research has shown that cost-conscious streamers (who often cut the cord due to cable’s high cost) are looking for a lower bill. Ad-supported streaming is offered at a lower cost than ad-free services, so more subscribers sign up. It’s just a math equation, and the data backs that up.
How Are Connected TV Audiences Targeted?
We touched on this lightly earlier in the article, but we’ll expand on it a bit here.
Connected TV targeting starts with a clear picture of the audience you want to reach. Marketers can build segments using demographic signals such as age, income, education, marital status, and household size, then narrow delivery by location (from a single ZIP code to the entire country). Behavioral and interest-based targeting adds another layer by using signals such as website activity, search behavior, past purchases, hobbies, and content preferences to make each ad more relevant.
Established brands can also put their own customer data to work. First-party sources such as CRM lists, email subscribers, loyalty members, and past purchasers help advertisers reconnect with valuable audiences. At the same time, retargeting gives recent website visitors another reason to return and convert. Cross-device targeting carries that message across CTV, phones, and tablets, creating a more consistent experience wherever audiences spend their time.
CTV Metrics and Measurement
This would be a lot less fun if you couldn’t track the results. Fortunately, you can. Most familiar digital marketing metrics are also available on CTV.
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IMP Impressions
The total number of times an ad is served to viewers.
What it tells you: The overall scale of campaign delivery.
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ROAS Return on Ad Spend
The revenue generated in relation to the campaign’s total ad spend.
What it tells you: How efficiently advertising investment produces revenue.
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CPCV Cost per Completed View
The average amount spent for each viewer who watches an ad in full.
What it tells you: The cost efficiency of completed ad views.
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CPA Cost per Acquisition
The average amount a campaign spends to secure one customer acquisition.
What it tells you: The cost efficiency of customer acquisition.
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Reach Reach
The number of individual viewers who see an ad at least once.
What it tells you: How many unique viewers the campaign reaches.
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Freq. Frequency
The average number of times each viewer receives an ad.
What it tells you: The level of repetition across the reached audience.
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GRP Gross Rating Point
An estimate of total campaign exposure calculated using reach and frequency.
What it tells you: The campaign’s total exposure within an audience.
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CPP Cost per Point
The amount an advertiser pays to earn one gross rating point.
What it tells you: The cost efficiency of audience exposure.
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TRP Target Rating Point
The percentage of an advertiser’s target audience exposed to its advertising.
What it tells you: Campaign exposure among the intended audience.
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X-Screen Cross-Screen Measurement
The tracking of video performance across television, Connected TV, mobile, desktop, and out-of-home screens.
What it tells you: How audiences engage with a campaign across devices and screens.
How Much Do Connected TV Ads Cost?
Connected TV advertising costs are far more transparent and controllable than traditional linear TV buys. CPMs vary widely depending on your campaign parameters. While they commonly range from the mid-teens on efficient FAST channels to the mid-$60s for premium, highly targeted inventory, most performance-focused efforts land comfortably in the $20-$40 CPM range.
The exact TV advertising costs depend on a handful of key variables, giving smart marketers real levers to optimize spend without sacrificing results.
- Audience targeting precision: The more specific your segments, the higher the CPM, but the stronger the relevance and performance you’ll see.
- Inventory quality and content environment: Ads running against premium networks and popular streaming programming command higher rates than those on more abundant FAST or standard inventory.
- Ad length and format: Longer 30-second spots or advanced creative formats generally carry different pricing than shorter 15-second ads, though the right platform helps keep things efficient.
- Seasonality and market demand: CPMs rise during peak periods such as holidays, major live events, or upfront buying cycles, when competition for inventory intensifies.
- Geographic scope: Hyper-local or Media Market-specific targeting can deliver different economics than broad national campaigns.
Connected TV Devices
There are quite a few CTV devices to choose from, and there are many ways to stream CTV or OTT content. These are also the platforms where your CTV advertising campaigns will be shown.
Tablets, Phones, Desktops
You don’t need a TV to actually watch TV anymore. Although traditionally considered OTT devices, household devices like tablets, phones, and desktops have been transformed into mini-television sets that stream content.
OTT/CTV Devices
OTT and CTV devices connect to your TV to enable continuous streaming, as long as your internet connection isn’t disrupted. Popular examples are Roku, Google TV Streamer, Amazon Fire TV Stick, Apple TV, and the major gaming consoles.
Smart TVs
If you’re buying a big screen these days, you’re most likely buying a Smart TV. This type of television has a built-in Internet connection; no sticks or dongles are required.
CTV Marketing Best Practices
Use this checklist to build CTV campaigns that reach the right viewers, make a splash, and improve over time.
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Understand Your Audience
Define the viewers you need to reach before developing the campaign. Shape the message and creative around their needs, interests, and behaviors.
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Use High-Quality, Engaging Creative
CTV offers premium inventory on the biggest screen in the house. Use polished video creative that matches the viewing environment.
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Use Advanced Targeting
Move beyond broad awareness by focusing campaign spend on specific audience groups that fit your goals.
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Add Interactive Elements
Give viewers a clear way to take the next step, whether that means learning more, visiting your website, or making a purchase.
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Apply Frequency Caps
Control how often viewers receive an ad to reduce fatigue and maintain a better viewing experience.
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Measure and Optimize
Review real-time reporting to see what is working, then refine creative, targeting, and campaign settings as results develop.
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Build a Cross-Device Strategy
Extend the campaign beyond the television screen to reach audiences across the devices they use throughout the day.
CTV Advertising Examples
There are tons of great CTV ad examples to demonstrate true “living room quality.” Here are a few of our favorites.
MNTN
Our first example is one put forward by MNTN (that’s us), starring our very own Chief Creative Officer, Ryan Reynolds. We admit we may be partial, but it’s for good reason. We deploy our platform to boost our brand, and it works. Take a look!
Rumpl
Rumpl explored CTV advertising with a remarkable commercial showcasing their incredibly stylish and cozy blanket made entirely from recycled materials. This compelling ad instantly draws the viewer in and deeply resonates with the adventurous wanderer’s spirit.
Replacements
For those who enjoy sophisticated and stylish dining table decorations, Replacements is a perfect fit. This CTV advertisement adheres to a proven strategy, outlining a common issue, offering a resolution, and demonstrating the solution, all within a 30-second window. Right to the point!
1Password
Let’s take a look at another ad featuring Ryan Reynolds. Why not? This CTV example spotlights 1Password, a state-of-the-art cybersecurity password manager designed to secure all your digital information. It’s another funny and memorable creative that doesn’t beat around the bush.
CTV Marketing With Performance TV
Ready to take the reins on your CTV advertising? MNTN’s performance-driven platform is all about driving real wins—not just racking up empty impressions. Picture this: you’re hitting premium audiences, tweaking things as you go, and tracking every single conversion like a pro.
Here’s what you get with MNTN Performance TV:
- MNTN Matched – AI-driven targeting pinpoints your ideal audience and serves ads at the perfect moment.
- Verified Visits™ Attribution – Connects ad views to site visits and conversions with industry-leading precision.
- Automated Optimization – AI continuously fine-tunes your campaigns to maximize performance without manual effort.
- Premium CTV Inventory – Get guaranteed placement on top streaming networks, putting your brand in front of engaged viewers.
- Reporting Suite – View real-time performance data and understand your campaign results to make informed decisions.
Power up your CTV strategy with MNTN’s self-serve software—sign up today to get started.
Connected TV Advertising: Final Thoughts
U.S. CTV ad spending is projected to reach $38 billion in 2026, and the channel’s blend of premium programming and digital-style control helps explain the momentum. CTV advertising combines targeted audience selection, real-time analytics, and interactive formats to help brands craft big-screen messages for the viewers they want to reach.
With Connected TV statistics showing rapid adoption and steadily growing viewer engagement, there’s never been a better opportunity for marketers to leverage this powerful channel.
Want a Closer Look?
Discover how Performance TV delivers revenue, conversions and more through the power of Connected TV. Request a demo today to speak to an expert.