What Is Connected TV (CTV) Advertising? A Complete Guide for Businesses

Connected TV advertising is one of the fastest-growing channels in digital marketing — and one of the most misunderstood. This guide breaks down exactly what CTV is, who should use it, and how to run campaigns that actually work.
What Is Connected TV (CTV)?
Connected TV (CTV) refers to internet-connected television sets that deliver streaming content through apps and platforms such as Netflix, Hulu, Amazon Prime Video, and YouTube. If your household has "cut the cord," you're already a CTV viewer.
CTV devices include:
- Smart TVs with built-in streaming apps
- Streaming sticks and boxes (Roku, Chromecast, Apple TV, Fire TV)
- Gaming consoles (PlayStation, Xbox)
CTV vs. OTT: What's the Difference?
Over-The-Top (OTT) refers to video content delivered over the internet without a traditional cable or satellite subscription. CTV is a subset of OTT — the key difference is the screen.
CTV | Large screens | (TVs)Smart TVs, Roku, Apple TV
OTT | Any device | Smartphones, tablets, laptops
The quick version: CTV = big screen. OTT = any screen.
What Is Online Video (OLV)?
Online Video (OLV) refers to video ads served on websites, social platforms, and apps — think pre-roll ads on YouTube or video units in a news feed. OLV typically runs on desktop and mobile, while CTV is exclusive to the television environment.
Who Should Advertise on Connected TV?
CTV advertising works across industries, but certain business types see the strongest returns:
Direct-to-Consumer (DTC) Brands — CTV gives DTC businesses a direct path to audiences who no longer watch traditional broadcast TV.
Local Businesses — Geographic targeting allows local businesses to serve ads to viewers in a specific city, zip code, or radius — something traditional TV rarely offered at an affordable scale.
E-Commerce Retailers — CTV drives upper-funnel awareness that supports product discovery and can be measured against downstream website traffic and purchase activity.
Subscription Services — Streaming services, SaaS platforms, subscription boxes, and online education businesses can use CTV to acquire new subscribers and reduce churn.




