Connected TV Advertising Guide: From Setup to Success in 2025

U.S. adults now spend nearly 2 hours daily streaming content on connected TVs, transforming how advertisers reach audiences. This guide explains CTV advertising, its benefits, and key considerations for marketers entering this rapidly growing channel

What is CTV Advertising?

CTV (Connected TV) advertising delivers targeted video ads to viewers streaming content on television screens through smart TVs and internet-connected devices like Roku, Apple TV, or gaming consoles (Xbox, PlayStation).

CTV marketing allows advertisers to precisely target specific audiences on different streaming services (Hulu, Netflix, Peacock, etc.) and measure ad campaigns with a variety of metrics.

Benefits of CTV Advertising

Massive Reach: 88% of U.S. households have at least one internet-connected TV

Highly Engaged Audience: CTV is typically watched on larger screens with focused attention paid to the content. This means ads are more likely to be seen and remembered by viewers.

Targeting Precision: Reach exact audiences based on geography, behaviors, and device usage.

Real-Time Performance: Monitor analytics and adjust campaigns as they run.

Higher Completion Rates: Ads on CTV see video completion rates up to 95.92% for 30-second ads.

Cost-Effectiveness: CTV advertising offers competitive pricing compared to traditional TV advertising and provides higher ROI through programmatic buying capabilities.

Reach Streaming-First Audiences: As viewing habits evolve and more people embrace streaming services, CTV advertising ensures you connect with audiences across their preferred platforms, complementing traditional TV reach. For local businesses, CTV's targeting precision can be particularly powerful—Metro Vein Centers reached their niche audience in just 4 states while avoiding wasted impressions in markets without clinic locations.

Cross-Device Impact: Influence viewers across mobile, tablet, desktop, and TV within the same household.

Non-Intrusive Experience: CTV ads are designed to respect the viewing experience, appearing at natural breaks rather than interrupting content, while still delivering relevant messages to engaged viewers.

How to run a CTV Ads Campaign?

Building a successful CTV campaign requires strategic planning across several key areas:

1. Set Clear Campaign Goals

Define what success looks like for your campaign. CTV can drive results across the marketing funnel:

• Upper-funnel: Brand awareness, reach, brand lift
• Lower-funnel: Website visits, conversions, app downloads

Your goals determine your KPIs, targeting strategy, and creative approach. Track reach and completion rates for awareness campaigns; focus on conversion rates and ROAS for performance campaigns.

2. Define Your Target Audience

CTV offers sophisticated targeting capabilities to reach specific viewers:

• Demographic targeting – Age, gender, income, education
• Geographic targeting – DMA, zip code, or radius targeting
• Behavioral targeting – Purchase intent, lifestyle, interests
• Contextual targeting – Genre, content type, daypart
• Retargeting – Previous website visitors or customers
• Lookalike audiences – Similar viewers to your best customers

For Deeper understanding read our CTV Ad Targeting 101

Simulmedia’s Case Study: Metro Vein Centers successfully used CTV's precision targeting to reach a niche audience (adults with varicose veins in just 4 states). By combining demographic targeting (women 40-64) with geotargeting around their clinic locations, plus retargeting website visitors, they reduced their cost per visitor by 85%. See the full case study.

Tip: Avoid over-targeting. While precision is valuable, too narrow an audience can limit scale and increase costs. Start broader and refine based on performance.

3. Choose the Right Platforms

Select platforms based on where your audience watches:

• Roku – Largest reach with 48% market share
• Amazon Fire TV – 28% market share, strong purchase data
• Hulu, Peacock – Premium content, engaged audiences
• FAST channels (Pluto TV, Tubi) – Free ad-supported, cost-effective reach

Each platform has different audience demographics, content types, and pricing. Premium platforms typically range from $25-40 CPMs while FAST channels offer $10-15 CPMs.

4. Develop Your Creative Strategy

CTV creative must capture attention immediately while meeting technical requirements:

Key creative considerations:

• Use 15 or 30-second formats (most common)
• Front-load your message in the first 5 seconds
• Ensure brand visibility throughout
• Consider interactive elements like QR codes

Technical requirements vary by platform but generally include:

• Resolution: 1920x1080 (16:9)
• File type: .mp4 or .mov
• File size: Under 1.78 GB

Ad Formats Available:

• In-stream video ads – Pre-roll, mid-roll, and post-roll placements
• Interactive ads – Clickable overlays, QR codes, and companion banners that drive engagement

For complete creative best practices and emerging trends, see our CTV creative & CTV ad specs guides

5. Plan Timing and Budget

Campaign duration: Run campaigns for at least 4 weeks to gather meaningful data; 8-12 weeks is optimal for most objectives.

Frequency management: Cap exposure at 3-5 times per week per household to avoid fatigue while maintaining effectiveness.

Budget planning: CTV budgets vary significantly based on your objectives, target audience, and desired reach. Rather than one-size-fits-all recommendations, successful CTV campaigns require customized budget planning that accounts for:

• Your specific audience size and targeting parameters
• Platform mix and inventory costs
• Seasonal fluctuations (Q4 and major events can impact pricing)
• Campaign duration and frequency goals

6. Select Technology Partners

Choose the right tools to execute and measure your campaign:

• DSPs for programmatic buying
• Measurement partners for tracking performance
• Attribution providers for cross-device insights

Key questions when evaluating partners:

• Can they match your first-party data?
• What inventory sources do they access?
• How do they handle frequency capping across devices?
• What measurement and optimization capabilities do they offer?

Remember: Successful CTV marketing strategy combine strategic planning with continuous optimization. Start with clear objectives, test different approaches, and scale what delivers results.

How to buy CTV Ads?

CTV advertising can be purchased through two main methods: direct deals with specific streaming services or publishers, and programmatic buying through automated platforms that access multiple inventory sources. Most advertisers use a combination of both approaches to balance premium inventory access with scale and efficiency

Direct deals involve manual negotiations with publishers and include:

• Direct Insertion Orders – Guaranteed impressions at fixed rates, ideal for premium placements and brand safety
• Sponsorships – Reserved premium slots like first-break positions

Programmatic buying uses automated technology and includes:

• Programmatic Guaranteed – Combines automation with guaranteed delivery
• Private Marketplace (PMP) – Invitation-only auctions with premium inventory
• Open Exchange – Real-time bidding with maximum scale but less control

Currently, about 70% of CTV inventory is still bought directly, though programmatic is growing rapidly as advertisers seek efficiency and scale.

CTV Ads Metrics: How to measure success?

Effective CTV measurement goes beyond tracking basic metrics to understanding their strategic application and limitations. Here's what to measure and how to use each metric effectively:

Core Performance Metrics

Video Completion Rate (VCR) Measures the percentage of viewers who watch your entire ad. CTV typically sees 95%+ completion rates due to the lean-back viewing experience. While high completion indicates engagement, pair it with other metrics like CPV for the full picture.

Reach & Frequency

• Reach: The number of unique households exposed to your campaign. Essential for awareness campaigns, but doesn't indicate audience quality
• Frequency: How often viewers see your ad. Research shows 3-7 exposures optimize impact, but over 10 exposures can reduce purchase intent by 4%+

CPM (Cost per Thousand Impressions) Your efficiency metric for managing budgets. CTV CPMs run higher than linear TV due to better targeting, but don't optimize solely on CPM—low costs may indicate poor-quality inventory.

Conversion & Attribution Metrics

Conversion Rate & CPA Track the percentage of viewers taking desired actions (purchases, sign-ups). CTV attribution uses household graphs to connect TV exposure with actions on other devices, making cross-device measurement possible. For example, Metro Vein Centers achieved a $14.86 cost per website visitor in their first CTV campaign, then reduced it by 85% through optimization and retargeting.

ROAS (Return on Ad Spend) Measures revenue per dollar spent—critical for proving financial impact. However, focusing only on ROAS can limit new customer acquisition. Balance performance with reach objectives.

Advanced Measurement

Incremental Reach For campaigns running across linear and CTV, measure the net-new viewers CTV adds to your total reach. Essential for understanding CTV's unique contribution.

Brand Lift Studies Compare exposed vs. control groups to measure impact on awareness, consideration, and purchase intent. Particularly valuable for upper-funnel campaigns.

CTV Campaign Optimization Tips

Select metrics based on objectives:

• Awareness campaigns: Prioritize reach, frequency, completion rates
• Performance campaigns: Focus on conversions, CPA, ROAS
• Hybrid campaigns: Balance both sets of metrics

Avoid common pitfalls:

• Don't over-optimize on any single metric
• Watch for suspiciously high metrics that may indicate fraud
• Set realistic attribution windows (1-day, 7-day, 30-day)

For strategic insights on the pros and cons of each metric, check our CTV metrics optimization guide.

Remember: No single metric tells the complete story. Successful CTV campaigns use a balanced scorecard approach, tracking multiple metrics aligned with campaign objectives.

Conclusion

CTV is not the future — it's the now. It bridges the storytelling power of TV with the targeting precision and real-time feedback of digital. As more consumers stream content across devices, marketers who lean into Connected TV will reap the benefits of smarter spend, broader reach, and measurable results.

For brands looking to maximize impact, CTV advertising platform like Simulmedia's TV+ unify CTV and linear media buying, ensuring consistency across screens, smarter targeting, and full-funnel performance insights.