CTV Advertising: How it Works and Why it Matters

You've probably noticed the term "CTV" appearing more often in marketing discussions. While it sounds like just another piece of industry jargon, it represents a significant shift in how we think about the screen in the living room.

To understand why this is a priority for modern advertisers, we first have to look at how the technology functions.

The Breakdown: Hardware vs. Content

In the simplest terms, Connected TV (CTV) is the hardware. It is any television that reaches the internet — whether it is a Smart TV with built-in apps or a standard TV connected to a device like a Roku, Apple TV, or gaming console.

OTT (Over-the-Top) is the service that delivers the video. These are platforms like Hulu or Peacock that "stream" content over the internet, bypassing traditional cable or satellite boxes. When we talk about CTV advertising, we are talking about placing your message within that streaming experience.

How it Works: Household Precision

The primary difference between CTV and traditional TV is how you reach your audience.

Instead of broadcasting a message to an entire city at once, CTV allows for precision targeting at the household level. Because these devices are connected to the web, we can serve ads to specific households based on real-world data, such as interests, purchase history, intent, or geographic location. This ensures the message reaches the people most likely to find it relevant.

Tactical Data: Results from an Auto Dealership Campaign

To show how this works in practice, we recently ran a campaign test for a Florida-based auto dealership. We used a 30 second advertisement that was initially intended for YouTube, but was perfectly compatible with the CTV format.

Rather than buying broad airtime, we targeted approximately more than 10,000 households that were identified as being in the market for a new vehicle. Over the course 

of the campaign, we maintained a frequency of 8.1, which made sure the brand stayed top-of-mind during the decision-making process.

The results were measurable and direct:

• Web Engagement: The campaign drove 1,955 web sessions directly from the CTV ads.

• Cost Efficiency: The cost-per-page-view on the dealership's site was $0.39.

• Conversions: The campaign generated 12 direct leads for the sales team.

The Bottom Line

A common misconception is that TV advertising requires a massive budget. In reality, because you are only paying to reach households that fit your specific customer profile, CTV is accessible for growing brands. It allows you to appear on the big screen with the same tactical precision you expect from your other digital channels.