Connected TV (CTV) & Streaming Advertising: Complete Guide 2025

Introduction to CTV Advertising

The CPG brand had spent 20 years buying TV the same way: upfronts, Nielsen ratings, hoping the right people saw their ads. Then they shifted 30% of their TV budget to CTV. For the first time, they could see exactly which households watched, which converted, and which needed retargeting. Same creative, same budget allocation—27% higher ROI.

Television advertising just got accountable.

The streaming revolution is complete: By June 2025, streaming hit 46% of total TV viewing time—surpassing broadcast and cable combined for the first time in history. CTV ad spend will reach $33.35 billion in 2025, growing 16.8% annually—the fastest rate of any major advertising channel. And CTV delivers 23% higher ROI than traditional TV, because precision targeting eliminates the waste that defined broadcast buying.

But CTV isn't just "digital ads on TV." The viewing environment is fundamentally different: lean-back, sound-on, high-attention. Campaigns that repurpose display creative miss the opportunity. Winners create for the living room while leveraging digital's targeting power.

This guide reveals how to master Connected TV advertising. Whether you're building video strategies or integrating with programmatic, you'll learn to capture the attention that streaming commands.

The Completion Advantage: CTV ads achieve 90-98% completion rates versus 10-20% for display. When ads play, people actually watch them.

The CTV Value Proposition

Why CTV Outperforms Traditional TV:

The fundamental shift: CTV brings digital accountability to the highest-impact ad format—television.

CTV Market Landscape 2025

Understand the rapidly expanding CTV advertising market.

Ad Spend Growth

Market Size:

Historic Milestone

Surpassing Traditional TV:

By 2028, CTV ad spend will surpass traditional TV:

• Digital-first generation
• Measurement advantages
• Targeting precision
• Performance accountability

Marketer Investment

Budget Trends:

56% of marketers increasing CTV spend in 2025:

• Up from 53% in 2024
• Essential media channel
• Cross-platform integration
• Full-funnel capabilities

Platform Growth

Ad-Supported Dominance:

57% of new subscriptions are ad-supported:

• Nearly half of total subscriptions include ads
• Netflix ad tier: 94 million monthly users
• FAST channels growing rapidly
• Hybrid models succeeding

Audience Reach & Demographics

Reach massive, engaged audiences through CTV.

Household Penetration

Device Ownership:

Streaming Share

Viewing Distribution:

Streaming's share has grown dramatically:

• March 2025: 43.8% of TV time
• June 2025: 46% of TV time
• 10-point increase in two years
• Continued linear decline

Generational Demographics

Age Breakdown:

Young Viewer Behavior

Gen Z & Millennials:

82% watch ad-supported CTV weekly:

• Prefer free streaming
• Accept ads for content access
• Higher engagement rates
• Brand discovery channel

CTV Ad Formats & Creative

Leverage CTV ad formats effectively.

Standard Formats

Available Options:

Interactive Ads

Enhanced Engagement:

Interactive CTV capabilities:

• QR codes for mobile action
• Shoppable overlays
• Remote control navigation
• Second-screen experiences

Creative Best Practices

High-Impact Creative:

Design for TV viewing distance

Use bold visuals

Clear audio messaging

Strong branding early

Single clear CTA

Dynamic Creative

Personalization:

Leverage data for relevance:

• Weather-based messaging
• Location customization
• Daypart variations
• Audience-specific versions

Targeting Strategies

Maximize CTV targeting precision.

Targeting Options

Available Methods:

Household Targeting

Addressable TV:

Target at household level:

• Device graph matching
• IP-based targeting
• Deterministic identification
• Cross-device reach

Audience Segments

Data Sources:

Build audiences from:

• First-party CRM data
• Purchase behavior
• Content consumption
• Cross-device activity

Retargeting Strategies

Sequential Messaging:

Connect CTV to conversion:

• Exposed household tracking
• Mobile/desktop retargeting
• Sequential storytelling
• Full-funnel attribution

Performance & Measurement

Track CTV advertising effectiveness.

Completion Rates

Viewability Excellence:

Key Metrics

Performance Indicators:

Track these KPIs:

• Video completion rate (VCR)
• Reach and frequency
• Brand lift
• Conversion attribution

ROI Performance

Return Comparison:

CTV delivers 23% higher ROI than traditional TV:

• Better targeting efficiency
• Reduced waste
• Clearer measurement
• Optimization capability

Attribution Challenges

Measurement Solutions:

Address CTV attribution:

• Incrementality testing
• Brand lift studies
• Foot traffic measurement
• Multi-touch attribution

Campaign Optimization

Optimize CTV campaigns for maximum performance.

Frequency Management

Optimal Exposure:

Balance reach and repetition:

• Monitor household frequency
• Cap by campaign duration
• Platform deduplication
• Cross-publisher frequency

Budget Allocation

Investment Strategy:

Testing Framework

Optimization Approach:

Creative testing

Audience comparison

Platform evaluation

Frequency analysis

Daypart optimization

Cross-Screen Integration

Holistic Video:

Connect CTV with digital:

• Sequential messaging
• Audience extension
• Unified measurement
• Coordinated creative

Best Practices & Future Trends

Execute CTV excellence and prepare for evolution.

Success Factors

Critical Elements:

Premium inventory focus

Clear measurement framework

Creative excellence

Strategic targeting

Cross-platform integration

Common Mistakes

Avoid These Errors:

2025 Trends Reshaping CTV Advertising

Your CTV Advertising Roadmap

Building a High-Impact Streaming Strategy:

Define Measurement First: Establish how you'll track CTV impact before launching campaigns

Create for the Living Room: Design sound-on, lean-back creative—not repurposed display

Leverage First-Party Data: Use CRM data for targeting and suppression to maximize efficiency

Control Frequency Carefully: Monitor household frequency across all platforms and publishers

Integrate Cross-Screen: Connect CTV exposure to mobile/desktop retargeting for full-funnel impact

The 23% ROI Edge: CTV delivers 23% higher ROI than traditional TV—but only if you're measuring correctly and optimizing based on actual household-level data.

Launch your CTV advertising with AdsMAA's streaming ad platform. Reach 242 million CTV viewers, achieve 23% higher ROI than linear, and drive measurable results across connected TV environments.