CTV EXPLAINED: FROM STREAMING TO ADVERTISING AND NEW OPPORTUNITIES

Navigating the Space Between Traditional TV and Digital Precision

Connected TV (CTV) represents a new way of consuming television - personalized, flexible, and digital. More consumers are streaming content straight to their TVs through the internet, choosing what they wish to watch on their favorite platforms, whenever they want. But CTV is more than just streaming; it provides advertisers with a unique blend of TV’s broad reach, precise digital targeting, and measurable results in a TV-like environment.

What exactly is behind the term, and why is it essential for brands looking to grow digitally?

What is Connected TV?

Connected TV refers to internet-enabled television devices—either Smart TVs or traditional TVs t enhanced with streaming devices like sticks or gaming consoles. Users access streaming content through these devices, on platforms like Netflix, YouTube, or Joyn.

Unlike traditional television, CTV is not tied to a linear broadcast schedule. Content is streamed on demand, meaning users decide what to watch and when. This changes not just viewing habits but also how Connected TV advertising operates.

CTV, OTT, and Traditional TV: What are the Differences?

• CTV refers to the internet-capable devices used for streaming, such as Smart TVs or set-top boxes.
• OTT (Over-the-Top) stands for the content delivered over the internet to any device—including tablets, smartphones, or laptops.
• Linear TV is traditional television with fixed broadcast times—no personalization, no interaction.

For marketers, the distinction is vital: Connected TV merges the immersive experience of TV with the targeting and analytics offered by digital platforms, allowing targeted ads to reach living rooms in a premium environment.

Why CTV Appeals to Advertisers

1. New Audiences, New Touchpoints

CTV particularly reaches hard-to-reach audiences—like 18–39-year-olds who rarely watch linear TV. These consumers almost exclusively use streaming platforms, often within ad-supported CTV offerings. CTV reach thus becomes an important component of the media mix.

2. Precise Targeting

Unlike traditional TV, Connected TV allows for precise audience targeting—based on age, interests, geolocation, or usage patterns. This means campaigns can not only be deployed more efficiently but also programmatically connected with other digital channels.

3. Capturing Attention

CTV users consciously choose content, often viewing it on large screens with sound in a relaxed setting. This creates an attentive advertising environment superior to standard social media or display ads, especially for branding goals.

4. Digital Control and Transparent Measurement

With Programmatic CTV, many campaigns can now be booked, managed, and optimized automatically. Known KPIs like View-Through Rate, Completion Rate, or even Conversions—depending on the setup and data foundation—can be employed. This measurability makes CTV marketing particularly appealing for performance-oriented brands.

Conclusion: The Opportunity Between Two Worlds

Connected TV sits at the crossroads between TV tradition and digital innovation. For advertisers aiming to grow brand awareness while leveraging digital precision, CTV represents a strategic channel that demands consideration beyond a minor role in media plans.

Understanding and adapting to this new viewing trend allows brands to enhance communication strategies effectively—right now, not later.

Sources:

*1: ARD/ZDF-Medienstudie 2024

Author: Sandra Schierhorn (Marketing Lead - Business Development)