What Is CTV Advertising? Definition, Platforms, and How It Works

Connected TV (CTV) advertising is paid media delivered through internet-connected television devices: smart TVs, streaming sticks (Roku, Amazon Fire TV, Apple TV, Chromecast), and gaming consoles. The category produced roughly $30 billion in US advertising revenue in 2024 and is the fastest-growing video advertising format. Hulu, YouTube TV, Roku, Amazon Prime Video with ads, Netflix's ad tier, Disney+ ads tier, Tubi, Pluto TV, and Peacock anchor the category.

CTV vs OTT vs Linear TV

CTV (Connected TV)

Video advertising delivered to the television screen through internet connection. The screen is a TV; the delivery is internet-based; the ad is typically full-screen and non-skippable.

OTT (Over-The-Top)

Broader category covering all internet-delivered video including CTV plus mobile, desktop, and tablet viewing. CTV is a subset of OTT defined by the TV screen.

Linear TV

Traditional broadcast and cable television delivered through over-the-air, cable, or satellite. Linear remains the largest video advertising category by revenue but has been losing share to CTV across the past decade.

The Major CTV Platforms

• Hulu (Disney): mature ad-supported tier with substantial premium content inventory
• YouTube TV and YouTube CTV: Google's CTV inventory across live and on-demand
• Roku: platform operating system plus owned-and-operated Roku Channel
• Amazon Prime Video with ads: launched 2024, immediately substantial scale
• Netflix ads tier: launched 2022, expanding inventory across 2024-2026
• Disney+ ads tier: launched 2022, integrated with Hulu sales infrastructure
• Peacock (Comcast): ad-supported and ad-free tiers
• Tubi (Fox) and Pluto TV (Paramount): free ad-supported streaming TV (FAST) services
• Samsung TV Plus, LG Channels, Vizio WatchFree: manufacturer-operated FAST services

How does CTV buying actually work?

CTV inventory is bought through three primary paths. Direct platform deals with major streamers (Hulu, Netflix, Disney+) for premium inventory at higher CPMs. Programmatic buying through DSPs (The Trade Desk, DV360, Amazon DSP) for scale and targeting. Specialized CTV platforms (MNTN, Vibe, tvScientific) for performance-focused CTV with attribution infrastructure. The buying skews more sophisticated than traditional digital because of premium content adjacency, household-level targeting, and the need for cross-device measurement.

What makes CTV different from other video advertising?

• Full-screen, non-skippable, sound-on ad delivery: the user attention is closer to broadcast TV than to mobile video
• Household-level rather than individual targeting: the TV is shared, the IP is the household identifier
• Premium content adjacency: inventory runs against scripted series, sports, films rather than user-generated content
• Measurement infrastructure still maturing: cross-device attribution remains a sustained industry challenge
• Fragmented inventory: dozens of platforms vs the three broadcast networks that dominated linear TV

How is CTV advertising measured?

CTV measurement combines platform-reported metrics (impressions, completion rate), third-party measurement (Nielsen, Comscore, iSpot.tv), and outcome measurement (incremental sales lift, footfall attribution, brand lift studies). Marketers running disciplined CTV programs invest in measurement infrastructure that connects CTV exposure to downstream conversion.

The bottom line on CTV advertising

CTV advertising is video advertising delivered to internet-connected televisions through streaming platforms and FAST services. The category is the fastest-growing video advertising format and now exceeds $30 billion in annual US revenue. The major platforms, Hulu, YouTube TV, Roku, Amazon Prime Video with ads, Netflix ads tier, Disney+ ads tier, Peacock, Tubi, Pluto TV, anchor the category. The discipline rewards marketers who invest in measurement infrastructure alongside the media spend.