What is CTV Advertising?
Connected TV (CTV) advertising refers to the delivery of video ads to viewers through internet-connected television devices. This includes smart TVs with built-in streaming capabilities (Samsung, LG, Vizio, Sony), dedicated streaming devices (Roku, Amazon Fire TV Stick, Apple TV, Chromecast), and gaming consoles (PlayStation, Xbox) used for streaming.
CTV advertising represents one of the fastest-growing segments in the digital advertising industry. As viewers shift from traditional cable and broadcast television to streaming services, advertising budgets are following. In 2026, CTV ad spend continues to grow at double-digit rates, with industry forecasts projecting it to surpass traditional TV ad spend within the next several years.
CTV vs. OTT vs. Linear TV: Clearing Up the Confusion
These terms are often used interchangeably but mean different things:
- Linear TV: Traditional television with scheduled programming delivered via broadcast antenna, cable, or satellite. Ads are bought upfront or in scatter markets, and targeting is based on program demographics, not individual viewers.
- OTT (Over-The-Top): Content delivered over the internet, bypassing traditional distribution (cable, satellite). OTT can be viewed on any device — phones, tablets, computers, and TVs. Netflix, Hulu, and YouTube are OTT services.
- CTV (Connected TV): A subset of OTT — specifically, OTT content viewed on a television set via an internet-connected device. CTV advertising targets the big-screen, lean-back viewing experience that most closely resembles traditional TV.
For advertisers, CTV combines the impact of television (large screen, sight-sound-motion, lean-back attention) with the precision and measurability of digital advertising.
The CTV Advertising Ecosystem
CTV Platforms and Devices
The CTV landscape is anchored by several major device platforms:
- Roku: The largest CTV platform in the US by hours streamed. Roku both manufactures devices and licenses its OS to TV manufacturers. It operates The Roku Channel (AVOD) and Roku Ads, its advertising platform.
- Amazon Fire TV: Amazon's streaming platform, spanning Fire TV Sticks and Fire TV Edition smart TVs. It provides access to Amazon Freevee (AVOD) and integrates with Amazon's advertising ecosystem.
- Samsung Tizen: Samsung's smart TV operating system powers the world's best-selling TV brand. Samsung Ads offers advertising across the platform, including Samsung TV Plus (FAST channel).
- LG webOS: LG's smart TV platform with built-in ad capabilities and LG Channels (FAST).
- Apple TV: Apple's streaming device, known for premium audiences but more limited ad inventory.
- Google TV / Android TV: Google's TV operating system, used by Sony, TCL, Hisense, and others.
Content Types
CTV content falls into several categories, each with different advertising models:
- AVOD (Ad-Supported Video on Demand): Free content supported by ads. Examples: Tubi, Pluto TV, Peacock (free tier), The Roku Channel.
- FAST (Free Ad-Supported Streaming Television): Linear-style channels streamed for free with ads. Growing rapidly, with services like Samsung TV Plus, Pluto TV, and Xumo.
- Hybrid / Ad-Supported Tiers: Premium services that offer a cheaper, ad-supported tier. Examples: Netflix Basic with Ads, Disney+ with Ads, Hulu (ad tier), Max (ad tier).
- SVOD (Subscription Video on Demand): Paid, ad-free streaming. Examples: Netflix (premium tier), Disney+ (premium tier), Apple TV+. Not relevant for advertising.
Programmatic CTV Advertising
A growing share of CTV advertising is transacted programmatically, using the same automated, data-driven approach as web and mobile advertising:
How Programmatic CTV Works
- Viewer starts streaming: A viewer opens a CTV app and begins watching content.
- Ad break triggered: When the app reaches an ad break, it sends bid requests to its SSP or ad server.
- Auction runs: The SSP sends bid requests to connected DSPs, which evaluate the opportunity based on targeting (device, geography, content genre, viewer data) and return bids.
- Winner selected: The highest bid wins, and the ad creative (typically a 15- or 30-second video) streams to the TV.
- Viewer watches: CTV ads are typically non-skippable, resulting in 95%+ completion rates.
CTV Ad Formats
- Pre-roll: Video ads that play before content begins
- Mid-roll: Video ads inserted during content breaks (most common)
- Post-roll: Video ads that play after content ends
- Interactive: Ads that include clickable overlays, QR codes, or voice-activated responses
- Pause ads: Ads displayed when the viewer pauses content
- Home screen ads: Display ads on the CTV platform's home screen (Roku, Fire TV, Samsung)
CTV Targeting and Measurement
Targeting Capabilities
CTV advertising offers more precise targeting than linear TV:
- Geographic: DMA, ZIP code, or even household-level targeting
- Demographic: Age, gender, and household income (via device registration and data partnerships)
- Content / genre: Targeting by the type of content being viewed
- Behavioral: Based on viewing habits, app usage, and purchase data
- First-party data: Advertiser CRM data matched to CTV households
- ACR (Automatic Content Recognition): Some smart TVs detect what is on screen, enabling targeting based on viewing history
Measurement Approaches
- Completion rate: The percentage of ads viewed to completion (typically 95%+ for CTV due to non-skippable formats)
- Reach and frequency: Measuring unique households reached and ad exposure frequency
- Brand lift: Survey-based measurement of ad impact on awareness, consideration, and intent
- Website / app attribution: Tracking whether CTV ad exposure leads to website visits, app downloads, or other digital actions
- Purchase attribution: Matching CTV ad exposure to in-store or online purchases through data partnerships
- Cross-screen deduplication: Identifying when the same household is reached across CTV, mobile, and desktop
Transparency in CTV: app-ads.txt
Transparency in CTV advertising relies on app-ads.txt, the mobile/CTV equivalent of ads.txt. CTV app developers host app-ads.txt files on their developer website domain, declaring which SSPs and ad networks are authorized to sell their ad inventory.
However, app-ads.txt adoption in CTV has lagged behind web ads.txt adoption. Many CTV apps still lack app-ads.txt files, creating transparency gaps that sophisticated buyers are beginning to address through supply path optimization and stricter buying policies.
How Red Volcano Helps with CTV Intelligence
Red Volcano's CTV Discovery product tracks apps across major CTV platforms:
- CTV app database: Comprehensive catalog of apps across Roku, Amazon Fire TV, LG webOS, and other CTV platforms.
- App-ads.txt analysis: Track which CTV apps have app-ads.txt files, which SSPs they authorize, and how their authorization data changes over time.
- SDK detection: Identify which advertising SDKs and monetization technologies CTV apps use.
- SSP market share: Understand which SSPs dominate CTV supply across different platforms and app categories.
- Opportunity identification: For SSPs and ad networks, find CTV apps that are monetizing with competitors but not yet in your network.