A plain-English guide to CTV advertising: how ads are bought, the formats, targeting, measurement, the role of SSAI, and why FAST and AVOD broadcasters should care.
CTV Advertising Explained: How Connected TV Ads Work
By Sampath Mallidi, CEO of Revidd · Last updated June 2026
CTV advertising is the buying and selling of video ads that play on television shows and movies streamed through internet-connected TVs, such as Roku, Apple TV, Fire TV, and smart TVs from Samsung, LG, and Vizio. Ads are inserted into ad-supported streams, targeted to specific audiences using data, and measured digitally, combining the big screen of broadcast TV with the precision of online advertising.
If you run a video library and monetize it with free, ad-supported viewing, CTV advertising is the engine that turns your audience into revenue. This guide explains how connected TV ads are bought, the ad formats, how targeting and measurement work, the role of SSAI, and what broadcasters with FAST and AVOD inventory need to know to sell it.
TL;DR
CTV advertising is video advertising delivered to internet-connected televisions inside streaming apps, FAST channels, and ad-supported VOD.
Ads are bought two ways: programmatically (automated auctions and deals) or direct (negotiated buys with a sales team).
Common formats: standard in-stream video (pre-roll, mid-roll), non-skippable spots, interactive overlays, and pause ads.
Targeting uses household and device data; measurement is digital, with impressions, completion rates, and increasingly outcome metrics.
SSAI (server-side ad insertion) stitches ads into the video stream so they play smoothly on TV and resist ad blockers.
US CTV ad spend reached an estimated $26.6 billion in 2025 and is approaching one-third of all TV ad spending, per the IAB and eMarketer. Broadcasters with FAST and AVOD inventory are positioned to capture a share of that shift.
What is CTV advertising?
CTV advertising is video advertising that plays on a television connected to the internet, served inside a streaming app rather than over a broadcast or cable signal. It is delivered through ad-supported streaming: free ad-supported streaming TV (FAST), ad-supported video on demand (AVOD), and the ad tiers of subscription services.
The "connected TV" part is the device. A CTV is any television that streams over the internet, whether through a built-in smart TV operating system (Samsung Tizen, LG webOS, Vizio) or a streaming device or stick (Roku, Apple TV, Amazon Fire TV, Android TV). When a viewer watches free content on one of these screens, the ad breaks are filled by CTV ad campaigns.
What makes CTV different from both traditional TV and from mobile or desktop video is that it pairs the lean-back, full-screen, sound-on living-room experience with digital targeting and measurement. You get the impact of a TV ad with the addressability of online advertising.
How is CTV advertising bought and sold?
CTV advertising is bought two ways: programmatically through automated platforms, or directly through negotiated insertion orders with a publisher's sales team. Most large broadcasters use a mix of both, keeping premium inventory for direct deals and selling the rest programmatically to fill demand.
Here is how the two models compare.
Programmatic | Direct | |
|---|---|---|
How it's transacted | Automated auctions and deals through a DSP, SSP, and ad exchange | Human-negotiated insertion order between buyer and publisher |
Speed | Real-time, scales instantly | Slower, relationship-driven |
Pricing | Auction-based or deal-based CPM | Negotiated fixed CPM |
Control over buyer | Lower (open auctions) to high (private deals) | Full control over who advertises |
Best for | Filling inventory at scale, long-tail demand | Premium placements, sponsorships, key accounts |
In the programmatic model, advertisers buy through a demand-side platform (DSP). Publishers and broadcasters expose their inventory through a supply-side platform (SSP). The two meet on an ad exchange, where impressions are auctioned in real time or sold through pre-arranged private deals (programmatic guaranteed and private marketplaces). The ad request carries a VAST tag, the IAB standard that tells the player which ad to fetch and how to track it.
The shift to programmatic and self-serve tools is why smaller and mid-size advertisers are now buying CTV at all. The IAB reported that the expansion of self-serve and programmatic ad tools was a major driver of CTV's growth, opening the channel to budgets that could never afford a traditional national TV buy. If you are standing up the auction side of this, our walkthrough on how to set up programmatic ads covers the DSP, SSP, and ad exchange wiring step by step.
For a deeper look at how the free, ad-supported model funds all of this, see our guide to how AVOD works for broadcasters.
What are the main CTV ad formats?
The dominant CTV ad format is the standard in-stream video spot, played before (pre-roll), during (mid-roll), or after (post-roll) the content, usually 15 or 30 seconds and most often non-skippable. Beyond the standard spot, several interactive and native formats exist.
In-stream video (pre-roll, mid-roll, post-roll): the core unit. On FAST channels and live streams, mid-roll breaks are scheduled into the programming the way ad breaks work on broadcast TV.
Non-skippable spots: because CTV is a lean-back experience, most ads run to completion, which is why CTV completion rates are high relative to skippable online video.
Interactive video / shoppable ads: overlays that let a viewer scan a QR code or use the remote to engage.
Pause ads: a static or animated ad that appears when the viewer pauses content.
Branded / sponsored placements: sponsorship of a channel, a content row, or a program block, usually sold direct.
For broadcasters, the practical point is that your ad breaks need to be marked in the stream so an ad platform knows where to insert. That is what SCTE-35 markers do, and it is the same signaling standard broadcast television has used for decades.
Selling FAST and AVOD inventory and not sure your ad stack is set up to capture programmatic demand? Revidd's FAST and AVOD tooling supports SCTE-35 ad markers, SSAI, and IAB VAST tags out of the box. See how Revidd handles ad monetization so your inventory is sellable from day one.
How does targeting work in CTV advertising?
CTV advertising targets audiences using household and device-level data rather than the broad age-and-gender demographics of traditional TV. Because the ad is served over the internet to a specific device, buyers can target by household attributes, viewing behavior, geography, and audience segments, then suppress or frequency-cap across that household.
Common CTV targeting approaches include:
Household and demographic data built from device graphs and first-party or third-party segments.
Geographic targeting, down to the metro or postal level, which matters for regional and local TV stations selling to local advertisers.
Contextual targeting based on the genre or content being watched (sports, faith, kids, news).
Behavioral and interest segments assembled in a data management platform (DMP).
Frequency capping across a household so the same viewer is not shown one ad ten times.
A practical caveat: CTV is largely a logged-out, household-level environment, so targeting is less granular than on mobile, and the industry is moving toward privacy-safe approaches like contextual and first-party data as third-party identifiers fade. For most broadcasters, contextual and geographic targeting are the most reliable levers.
How is CTV advertising measured?
CTV advertising is measured digitally, using impression-level data rather than the panel-based ratings of legacy TV. The baseline metrics are impressions served, video completion rate (VCR), and viewable completed views, with the industry increasingly tying campaigns to business outcomes.
Standard measurement signals include:
Impressions and reach at the household level.
Video completion rate (VCR): the share of ads that play to the end, which is high on CTV because most spots are non-skippable.
Frequency: how often a household saw the campaign.
Outcome and attribution metrics: website visits, app installs, and conversions lifted by the campaign, measured through pixels and identity matching.
The VAST tag that delivers the ad also carries the tracking events (start, quartiles, complete) that feed these reports. For a broadcaster, clean ad signaling and accurate event reporting are what let a buyer trust your inventory and pay a fair CPM for it. To understand how that price is set, see our explainer on what CPM means in streaming, and watch your streaming ad fill rate, the share of ad breaks that actually get filled with paid demand.
What is SSAI and why does it matter for CTV ads?
SSAI (server-side ad insertion) is the technique of stitching ad content directly into the video stream on the server before it reaches the viewer's device, so ads and content play as one continuous feed. It is the preferred way to serve CTV and FAST ads because it delivers a broadcast-quality viewing experience and is far harder for ad blockers to strip out.
With the older client-side approach, the player on the TV fetches ads separately, which can cause buffering, mismatched resolutions, and a visible gap when an ad loads. SSAI removes that by assembling the ad and the content into a single HLS stream server-side. The viewer sees a smooth transition, the same way a broadcast ad break feels on cable.
For FAST channels specifically, SSAI is effectively required. A linear channel runs 24/7 with scheduled ad breaks, and you cannot have every viewer's player negotiating ads independently without breaking the stream. We cover this in depth in our explainer on what SSAI is and how server-side ad insertion works.
Why should FAST and AVOD broadcasters care about CTV advertising?
FAST and AVOD broadcasters should care about CTV advertising because it is the revenue model their inventory is built for, and the money is moving toward it fast. Every free ad-supported stream you run is CTV ad inventory, and CTV ad budgets are growing while traditional TV declines.
The numbers make the case. US CTV ad spend reached an estimated $26.6 billion in 2025, up about 13% year over year, according to the IAB 2025 Digital Video Ad Spend report. eMarketer reports that CTV is nearing one-third of all US TV ad spending, taking share from linear year after year. A meaningful portion of that growth is budget reallocated straight out of linear TV.
For a broadcaster with an existing library, this is addressable revenue. A faith network, a regional station, a sports rights holder, or a diaspora channel can package its audience as CTV inventory and sell it programmatically, directly, or both. The requirements are practical: ad-marked streams (SCTE-35), SSAI to insert cleanly, VAST tag support to connect to ad servers and exchanges, and accurate reporting so buyers trust the numbers. Revidd's ad-tech stack covers dynamic ad insertion (DAI), SSAI, ad-server and SSP/DSP integration, and ad measurement, so a broadcaster can stand up sellable CTV inventory without building an ad platform in-house.
To understand where CTV fits next to OTT and FAST as terms, read our breakdown of OTT vs CTV vs FAST. And to model the revenue side, see how FAST channel revenue works.
Turn your library into sellable CTV inventory
If you own a video library and want it earning ad revenue across every connected TV screen, the gap is rarely the content, it is the ad infrastructure. You need SCTE-35 ad marking, SSAI, VAST tag support, and clean measurement, all running natively on Roku, Apple TV, Fire TV, Samsung, LG, Vizio, and mobile from one integration.
Revidd gives broadcasters that full ad-tech stack as part of a plug-and-play OTT and FAST platform, with no in-house engineering. The platform reaches more than 38 million viewers and a 5.2 million monthly active audience across 15 countries, and broadcasters can go live across every major device in weeks. Request a Revidd demo and we will show you how to make your FAST and AVOD inventory sellable to CTV ad buyers.
FAQ
What does CTV stand for in advertising?
CTV stands for connected TV, meaning any television connected to the internet that streams video, such as a Roku, Apple TV, Fire TV, or a smart TV from Samsung, LG, or Vizio. CTV advertising is the video advertising delivered to those screens inside streaming apps, FAST channels, and ad-supported VOD.
What is the difference between CTV and OTT advertising?
OTT (over-the-top) refers to delivering video over the internet rather than through cable or broadcast, on any device including phones and laptops. CTV is the subset of OTT that plays specifically on a television screen. In advertising, CTV typically commands higher value because it is the big-screen, sound-on, lean-back environment.
How is CTV advertising bought?
CTV advertising is bought either programmatically, through automated auctions and deals on a demand-side platform connected to publisher inventory via supply-side platforms and ad exchanges, or directly, through a negotiated insertion order with the publisher's sales team. Many broadcasters sell premium placements direct and the rest programmatically.
What is SSAI in CTV advertising?
SSAI (server-side ad insertion) stitches ads into the video stream on the server before it reaches the viewer, so the ad and content play as one continuous feed. It delivers a broadcast-quality experience, prevents buffering between ad and content, and resists ad blockers, which is why it is the standard for FAST channels and CTV.
How big is the CTV advertising market?
US CTV ad spend reached an estimated $26.6 billion in 2025, up roughly 13% year over year per the IAB, and eMarketer reports CTV is nearing one-third of all US TV ad spending. CTV ad budgets continue to grow, largely by reallocating dollars away from traditional linear TV.
Do broadcasters need SCTE-35 to run CTV ads?
Yes, for linear and FAST channels. SCTE-35 markers tell ad platforms exactly where ad breaks occur in the stream so ads can be inserted at the right moment. It is the same ad-signaling standard broadcast TV has used for years, and it is what makes a FAST channel's inventory sellable to CTV ad buyers.
