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What is CTV?

In 2018, the IAB (Interactive Advertising Bureau) found that roughly 13.5 million households had completely abandoned traditional television subscriptions. In place of traditional TV, users have migrated to CTV by way of Smart TVs, gaming consoles with internet capabilities, or plug-in TV devices such as Roku, Google Chromecast, and Apple TV.

CTV ads are seen during streaming of content on ad-supported services like Pluto, or other popular streaming apps by networks like Discovery, CBS, FOX, and more. These ads are viewed on both large and small screens - whichever platform a viewer is using to consume their media on an ad can be shown. This includes televisions, but also laptops, portable gaming devices, tablets, and mobile phones.

Why CTV Advertising?

Across the numerous streaming platforms available, 80% of CTV users are subscribed to a package that includes ads. The majority of CTV users are in the ideal age range for advertising of 25-54. In February of 2020, in a study done by Statista, only 12% of users were in the 18-24 age range. With the vast majority of users in the ideal audience age range, your advertising efforts will be more impactful by hitting that ideal demographic.

Unlike other forms of advertising - like display - where an ad is likely to only be seen by 1 person, TV watching is more commonly a group activity where an entire family or group of friends may all see the same ad, thereby increasing the number of individuals who have been exposed to your brand or product.

How to make CTV Work for you.

Best practices say you want to account for $0.75 per individual in your audience. For example, if your audience size is 10,000 people, you’d want to set your advertising budget for that audience to $7,5000 per month.

But how are you able to figure out the size of your target audience? Similar to search and display advertising, you can target campaigns to your ideal audience using familiar parameters such as geofencing, behavioral, demographic, and retargeting. Additionally, a unique feature of CTV advertising is the ability to target specific programming verticals to make sure messages really resonate with your ideal audiences.

The current global pandemic has people spending more time indoors and searching for content on their connected TVs than ever. One study shows average streaming time is up 20% globally and 26% in the United States since the start of the pandemic. Pricing for CTV advertising is currently budget-friendly, but with others catching on to the spike in screen

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