What is CTV (connected TV) in advertising?

Short answer. In advertising, CTV (connected TV) means a large TV screen connected to the internet, either as a smart TV or through a games console or streaming device, and CTV advertising is video bought to run on that screen. The abbreviation has other meanings outside advertising; this page is about connected TV.

The definition

IAB UK, working with its CTV members and IAB Europe, published shared definitions on 26 August 2022. It says: "CTV is a subset of OTT. A large TV screen that is connected to the internet, either directly (like a Smart TV) or through a gaming console or streaming device (e.g. Apple TV, Roku etc.)." It adds that "A media buy of CTV inventory can generally be assumed to be running in a large screen format."

CTV vs OTT

The two terms get mixed up, and two respected sources frame them differently. For IAB UK, OTT is the wider category: it "includes all devices (mobile, desktop, consoles) and environments (apps, web) and is not exclusive to connected TV (CTV)." AppsFlyer, a mobile measurement partner, separates them by device and content instead: "Connected TV is the physical device that connects to the internet and streams content. Over-the-top, or OTT for short, specifically refers to the content and streams that are being shown on a connected TV." Either way, when you buy CTV you are buying the big screen in the room.

Formats

AppsFlyer's glossary names three main CTV formats: "in-stream video ads, interactive video ads, and display ads." It says in-stream ads "typically range from 15 to 30 seconds", and that interactive ads may use "a clickable button on the screen, a carousel, or a QR code."

A worked example (illustration)

These numbers are made up to show the arithmetic. A 30-second spot serves 1,000,000 impressions at a $30 CPM, so the buy costs $30,000. If 2,000 viewers scan the on-screen QR code, the cost per scan is $15. That scan count is only the visible part: most of the effect of a TV ad shows up later on another device, which is why the scan rate alone undersells or oversells it.

What a good or bad reading tells you

AppsFlyer is candid that "CTV measurement is still maturing". A strong completion rate tells you the spot was watched, not that it drove installs or purchases. The honest reading is a lift test: compare regions or periods with and without CTV and see whether total results move. See incrementality and our note on incrementality testing for creative.

In games and in consumer brands

Our read: on a TV there is no thumb on the screen, so the ad has to make someone pick up their phone later. For a game that usually means one clear image of the game and its name said out loud. For a consumer brand it means a product and a reason that survive being watched from across a room.

Common mistakes

• Putting a vertical phone ad into a horizontal TV slot. We cover why in running the same ad on every platform.
• Judging CTV on last-click attribution, which credits whatever the viewer tapped later on their phone.
• Treating CTV and OTT as interchangeable when buying, so the ad runs on phones you did not plan for.

Flixr's view

We think the big screen rewards the produced, cast work that phone feeds stopped paying for, which is the argument in high-end creative still has a place. We cast actors where trust has to land; our live-action and CTV page shows that side of the work.