Advertising on connected TV (CTV) is booming and it comes with good cause. As more people ditch traditional cable and satellite TV, advertisers are shifting to smart TVs and streaming services to reach their audiences in exciting new ways.
If you’re an advertiser and unsure how CTV advertising fits into your marketing strategy, this guide is for you. We’ll break it down in simple terms and show you why this is a game-changing opportunity you don’t want to miss.
What Is CTV Advertising?
CTV advertising is an act of serving video ads on smart TVs, gaming consoles, and other over-the-top (OTT) devices through streaming platforms. Unlike traditional TV ads that air on cable networks, CTV ads are digital. It means that they give marketers the power to track performance, personalize content, and optimize campaigns in real time.
The Differences of CTV, OTT, and Linear TV
This is the summarized definition of CTV, OTT, and linear TV for you to learn and understand:
Connected TV (CTV): CTV refers to the physical device you use to stream content on a big screen, like a smart TV or a streaming stick. While users enjoy their favorite shows and movies, ads may appear just like they do on traditional TV.
OTT: OTT is any content streamed over the internet without relying on traditional cable or satellite providers. Unlike CTV, which is mainly for TVs, OTT lets you watch on almost any device—smartphones, tablets, laptops, and more, where users stream what they want when they want!
Linear TV: This is the traditional way of watching TV, where shows air on a set schedule through cable, satellite, or broadcast networks. Users tune in at a specific time, just like in the old days, rather than choosing when to watch.
The ability to use digital targeting and advanced analytics to achieve greater precision for advertisers is the main benefit of CTV and OTT advertising over linear TV.
The Growth of CTV
Numbers don’t lie. The use of connected TV has increased dramatically in recent years. CTV ad expenditure in the United States is expected to increase from $24.6 billion in 2023 to an incredible $42.4 billion by 2027, according to the latest research from Statista. According to Convergence Research, by 2025, about 72% of American families are anticipated to cut the cord, and this trend is not slowing down.
Furthermore, a wide range of viewers, from corporate and B2B decision-makers to young audiences, consume CTV content for entertainment and even business opportunities. In fact, Gen Z and millennials are leading the charge, with 80.2% of 13–18-year-olds streaming content through CTV. By 2025, over 62.6 million millennials and 56.1 million Gen Zers in the U.S. are expected to watch CTV regularly. With one-third of U.S. viewers using their CTV devices to complete purchases after seeing an ad, brands are increasingly investing in this growing digital space (StackAdapt, Statista).
CTV Advertising for Young Audiences
Unlike traditional TV, CTV delivers content through streaming services on smart TVs, gaming consoles, and other internet-enabled devices. It’s exactly where younger demographics spend their screen time.
With the decline of cable subscriptions and the rise of on-demand viewing, Gen Z and Millennials are increasingly consuming content through platforms. This shift presents a unique opportunity for advertisers to reach them in a non-intrusive, personalized way, leveraging data-driven targeting to ensure the right message reaches the right viewer at the right moment.
Why Use CTV Advertising to Reach Young Audiences?
Young consumers crave relevant content, engaging, and seamlessly integrated into their viewing habits. CTV advertising enables brands to:
Reach Cord-Cutters & Cord-Nevers – Many younger viewers have never subscribed to traditional cable, making CTV the most effective way to engage them. Additionally, young decision-makers, including Gen Z, Millennials, and Gen X, consume CTV programming regularly.
Leverage Advanced Targeting, Less Wasted Impression – CTV allows for precise targeting based on demographics, interests, and behavior, ensuring your ads resonate with the right audience. This results in a fewer wasted impression.
Enhance Engagement – Unlike traditional TV ads, CTV commercials can be interactive, clickable, and customized, driving higher engagement and conversion rates.
Measure & Optimize Performance – Real-time analytics provide insights into ad performance, allowing brands to refine their strategies for maximum impact.
As digital habits continue to evolve, CTV advertising stands out as a powerful tool for capturing the attention of younger generations—where they are, how they watch, and in ways that truly connect.
Targeting Features of CTV
CTV advertising’s data-driven targeting features are among its biggest benefits. CTV enables advertisers to target particular demographics, interests, behavior, and even purchase intent.
The targeting features include:
Targeting by demographics and geography: location, age, economic level, and more.
Behavioral targeting: Target viewers according to their surfing or streaming habits via behavioral targeting.
Device targeting: Display advertisements to consumers according to the device they are using via device targeting.
Retargeting: Show advertisements to those who have already interacted with your previous online campaign.
Advertisers can hyper-segment their customers and send highly relevant messages to the right people at the right time by utilizing CTV first-party data.
Pro tip: Target young audiences on CTV by leveraging first-party data, popular content genres, and interactive ad formats to maximize engagement.
CTV Advertising Measurement
CTV’s digital nature allows for more sophisticated measurement. Advertisers can use CTV to gauge campaign success in the following ways:
Impressions & eCPMs: See how often your ad is shown and measure cost-effectiveness.
View Completion Rates: Track how many viewers watch your ad from start to finish. It;s a key of engagement metric.
Attribution Models: Use advanced tracking and identity graphs to see who viewed your ad and retarget them with follow-up digital campaigns.
Connecting ad exposure to real business outcomes is one of CTV’s biggest advantages. Research shows that 88% of consumers consider purchasing a product after seeing a CTV ad, helping brands move potential buyers through the sales funnel faster (LinkedIn Analytics).
With these advancements, advertisers can now easily link their CTV campaigns to key ROI metrics like conversions, sign-ups, and sales, making it simpler than ever to measure success and optimize future campaigns.
Why Advertisers Should Use CTV to Reach Young Audience?
Connected TV (CTV) is the key to engaging young audiences, combining the storytelling power of TV with the precision of digital marketing.
As the fastest-growing digital ad channel, CTV offers advanced targeting, in-depth analytics, and high engagement, making it essential for brands looking to connect with younger viewers.
Advertisers using CTV are seeing lower CPMs and higher ROIs, whether aiming for brand awareness or driving action.
Want to revolutionize how you reach young audiences? Explore CTV advertising with Ampliffy today!