Television is undergoing one of the most significant transformations in its history. As viewers shift from traditional cable to streaming services, Connected TV (CTV) has become the new frontier for both brands and publishers.
By 2025, 86.3 million US households are expected to be CTV viewers, surpassing the reach of traditional TV. This shift presents an unparalleled opportunity for advertisers to engage with audiences in more personalized, measurable, and data-driven ways.
However, for CTV to reach its full potential, the industry must overcome challenges related to data fragmentation, standardization, and transparency. The future of CTV is about unlocking efficiencies, optimizing targeting, and fostering collaboration between advertisers and publishers.
- CTV 101: What It Is and How It Works.
- Why CTV Is Winning Over Advertisers and Publishers.
- Solving CTV’s Biggest Challenges: Data, Measurement, and Standardization.
- What’s Next for CTV Advertising?
- Why CTV Is the Future of Advertising.
CTV 101: What It Is and How It Works
CTV advertising refers to video ads delivered through internet-connected TV devices, such as Smart TVs, streaming sticks (Apple TV, Roku, Fire Stick), gaming consoles, and set-top boxes.
Unlike traditional TV ads, CTV advertising is highly targeted, using demographic, behavioral, and contextual signals to deliver relevant ads to viewers.
CTV ads can be inserted dynamically into streaming content and measured using real-time performance metrics, giving advertisers insights into:
- Who saw the ad.
- How they interacted with it.
- Whether they took an action after viewing.
"Household adoption of Smart TVs is set to exceed 80% in the U.S. within the next five years."
As more consumers shift to ad-supported streaming models, brands and publishers must rethink their ad strategies to capitalize on this expanding ecosystem.
Why CTV Is Winning Over Advertisers and Publishers
The shift toward CTV advertising is not just a response to changing consumer behavior, it’s a strategic move toward more efficient, measurable, and cost-effective advertising.
For Advertisers: A Smarter Way to Engage Consumers
"Studies show that CTV achieves an attention rate of 82% vs. 69% for linear TV."
This increased engagement makes CTV one of the most powerful digital advertising platforms available today. For brands looking to advertise on CTV, key advantages and additional benefits include:
- Precision Targeting – Unlike traditional TV, CTV enables granular audience segmentation, reaching consumers based on interests, viewing history, and demographics.
- Cost Efficiency – With programmatic buying, advertisers optimize their ad spend, reaching the right audience without excessive waste.
- Measurable Performance – Brands can track impressions, engagement, and conversions, ensuring their ads deliver tangible business results.
For Publishers: Unlocking Revenue Opportunities
With ad-supported streaming models growing, publishers have more ways to monetize premium content. Streaming giants like Netflix, Amazon Prime Video, and Disney+ have introduced ad-supported tiers, while over two-thirds of viewers on Peacock, Paramount+, and Hulu are expected to opt for ad-supported plans next year.
For publishers, CTV presents a way to maximize ad inventory and drive higher CPMs, thanks to:
- A more engaged audience – Streaming viewers are actively selecting content, leading to higher ad retention rates.
- Diverse revenue models – Publishers can monetize through pre-roll, mid-roll, and post-roll ads, ensuring a flexible ad strategy.
- Cross-device opportunities – CTV ads can integrate with mobile and desktop campaigns, providing an omnichannel advertising experience.
“By 2028, CTV is projected to grow at a compound annual growth rate (CAGR) of 13%, reinforcing the importance of this format for publishers looking to future-proof their business models.”
Solving CTV’s Biggest Challenges: Data, Measurement, and Standardization
Despite its advantages, CTV still faces hurdles that advertisers and publishers must navigate to fully unlock its potential.
Data Fragmentation and Standardization
One of the biggest challenges in CTV advertising is the lack of uniform data-sharing practices. Log-level data—which provides granular insights into user behavior—remains fragmented across different platforms.
This fragmentation leads to:
- Ad repetition issues – Viewers often see the same ad multiple times in succession, creating negative brand sentiment.
- Limited transparency – Advertisers struggle to track where their ads appear, impacting brand safety and performance measurement.
The industry must work toward standardized data-sharing models that give advertisers and publishers a clearer view of ad performance.
The Role of First-Party Data to advertise on CTV
As third-party cookies continue to decline, first-party data has become the most valuable asset in CTV advertising strategies.
- Better audience insights – First-party data enables precise targeting without infringing on user privacy.
- Privacy-compliant solutions – Cookieless advertising ensures compliance with evolving data regulations.
- Improved ad relevance – Personalized ad experiences lead to higher engagement and conversion rates.
"More than half of the open web and all CTV inventory have already been cookieless for some time."
By harnessing first-party data, brands and publishers can optimize ad placements, reduce waste, and improve targeting accuracy.
What’s Next for CTV Advertising?
The future of CTV advertising is being driven by emerging technologies and new industry standards that improve efficiency and measurement.
1. Programmatic TV & AI-Driven Targeting
Programmatic CTV advertising allows brands to buy ad inventory in real time, ensuring maximum efficiency and reach. AI-driven targeting enhances personalization and performance optimization.
2. New Ad Formats to advertise on CTV
New ad formats specifically designed for CTV are creating more immersive ad experiences, helping brands connect with audiences in meaningful ways.
3. Cross-Device Advertising for Seamless Engagement
CTV will become a seamless part of omnichannel campaigns, integrating with mobile, desktop, and social advertising strategies to enhance user engagement.
“CTV ad revenue is projected to reach $42.5 billion by 2028."
Why CTV Is the Future of Advertising
CTV is no longer an emerging trend—it is the present and future of television advertising. With higher engagement, precise targeting, and measurable performance, it offers a compelling alternative to traditional TV.
For publishers, it provides new monetization opportunities through ad-supported streaming models, maximizing revenue while maintaining a seamless viewing experience. As CTV viewership continues to grow and regulatory restrictions make other channels less effective, CTV campaigns will become an even more powerful way for advertisers to reach their target audiences and brands that advertise on CTV today will gain a long-term competitive advantage.
The industry’s next step is clear: addressing data-sharing challenges and embracing first-party data to improve measurement, targeting, and campaign effectiveness. The brands and publishers that invest in CTV today will gain a long-term competitive advantage.
At Seedtag, we help brands and publishers unlock the full potential of CTV advertising by providing contextual AI solutions that drive performance, ensure brand safety, and optimize targeting strategies. Our technology empowers advertisers to deliver privacy-first, engaging campaigns that reach the right audience at the right time. As CTV continues to grow, our solutions help advertisers maximize impact by refining placements, improving engagement, and enhancing measurement strategies.
Ready to take your CTV advertising strategy to the next level? Contact Seedtag today to explore how our contextual AI solutions can drive results for your brand.
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