CTV stands for Connected TV: any television set that streams video content over the internet, either because the TV itself is internet-connected or because an attached device — a streaming stick, box, or console — makes it so. When a viewer watches an ad-supported show or channel on that screen, the ad break is filled digitally, and that is the inventory CTV advertising buys.
The term is often used interchangeably with OTT (over-the-top), but buyers should separate them. OTT describes the content delivery method — video streamed over the internet, bypassing cable or broadcast distribution — and includes phones, tablets, and desktops. CTV is the subset of that viewing happening on a television screen. Most premium brand campaigns care specifically about the big-screen subset, which is why 'CTV' appears in deal names and inventory packages.
CTV inventory comes from several distinct sources, and knowing which one you are buying matters more than any other single detail:
Each source differs in audience composition, content environment, ad load, and the buying paths available. A plan that treats 'CTV' as one undifferentiated pool usually ends up over-indexed on whatever supply is cheapest and easiest to access — which is rarely the supply a brand would choose deliberately.
- Subscription services with ad tiers — major streaming platforms that carry ads in their lower-priced plans
- FAST channels — free, ad-supported streaming TV services that run scheduled, linear-style channels
- Broadcaster and network apps — ad-supported apps from TV networks and station groups
- Virtual pay-TV services — live channel bundles delivered over the internet
- Device-native inventory — home-screen placements and ad-supported apps sold by TV and streaming-device manufacturers
Almost all CTV inventory is bought programmatically, but 'programmatic' covers three very different deal structures:
The right structure depends on the campaign. Broad reach goals can lean on the open auction; brand-sensitive, context-specific, or sponsorship-adjacent buys usually belong in PMP or guaranteed deals where the package contents are known in advance.
1.Open auction
You bid against every other buyer in real time across a broad pool of supply. Maximum scale and the lowest barrier to entry, but the least control over exactly where ads appear and the most exposure to low-quality or mislabeled inventory.
2.Private marketplace (PMP)
A seller curates an inventory package and invites defined buyers to bid on it through a deal ID. Fewer bidders, clearer pricing, and far better visibility into what you are buying. This is the structure most buyers use for premium supply.
3.Programmatic guaranteed
Fixed pricing and a committed volume on both sides, executed automatically through the same deal-ID mechanics. Closest to a traditional TV upfront buy, with digital execution.
CTV targeting is meaningfully better than traditional TV and meaningfully weaker than web display. Buyers can typically target by geography (down to ZIP or designated market area in many platforms), device type, content genre or channel, daypart, and audience segments built from first-party or third-party data. Household-level addressable targeting exists but depends on the platform, the seller, and the data available for the specific deal.
Two constraints surprise buyers coming from web advertising. First, there are no cookies on the TV screen, so identity resolution runs through household graphs and platform logins, and coverage varies. Second, targeting can only narrow within the inventory a deal actually contains — if the package has no children's content, no amount of audience targeting will put your ad there. Confirm what a deal includes before layering targeting on top of it.
CTV measurement typically reports impressions, completion rates (which are high, because most CTV ads are non-skippable), reach and frequency, and — where the setup allows — outcome metrics such as site visits, app installs, or purchases attributed to exposed households.
Verification is the buyer's responsibility to arrange, not a default. Third-party verification vendors can measure invalid traffic, brand safety, and viewability-like signals, but vendor support varies by app and device, and some environments pass limited data. Before launch, confirm which verification vendors are supported inside the specific inventory you are buying and get the tags accepted by the seller.
CTV is bought on a CPM basis, and prices vary widely with the quality and scarcity of the supply. Broad open-exchange inventory clears at the low end; curated premium packages, live sports, and marquee streaming environments command significantly higher CPMs. Geography, targeting narrowness, ad length, and seasonality all move the number.
Treat any quoted CPM as a starting point for a specific package, not a market rate. Two deals at the same CPM can deliver very different value depending on what content is inside them, how much of the audience is actually in your target, and what verification confirms after the fact.
1.Define the audience and geography
Who you need to reach and where, including any regions to exclude. This determines which supply sources can even serve the campaign.
2.Decide what content environments qualify
List the genres, channels, or app categories you want — and the ones you will not run against. This is what turns 'CTV' from a pool into a plan.
3.Choose a deal structure
Open auction for scale, PMP for curated quality and transparency, programmatic guaranteed for committed volume at fixed pricing.
4.Confirm your buying platform
Deals are activated through a DSP. Confirm your platform supports the deal types and inventory sources you want, and have your account identifier ready for sellers.
5.Prepare creative to spec
VAST-hosted video at the required durations, plus any tracking and verification tags. Creative approval timelines can make or break a flight.
6.Set measurement before launch
Agree on the metrics, the verification vendor, and the reporting cadence before spend starts — retrofitting measurement mid-flight rarely works.
- Buying 'CTV' as an undifferentiated pool without knowing which apps and channels are inside
- Layering targeting narrower than the deal's own inventory, starving delivery
- Assuming verification works everywhere instead of confirming vendor support per environment
- Comparing CPMs across deal structures without comparing what the packages contain
- Leaving creative approval and deal-access setup until after the flight dates are committed