What Is CTV Advertising? Definition and Examples

What is CTV Advertising?

CTV advertising is advertising delivered to viewers watching streaming content on a connected TV, such as video ads inside streaming apps, overlays, home screen placements and interactive units.

Also known as: connected TV advertising, streaming TV advertising

How it works

When someone watches an ad-supported streaming app on a connected TV, the app creates opportunities to show ads. The most common is the in-stream video ad, which plays before, during or after the content, much like a traditional TV commercial. Other formats include:

Overlays. Graphics that appear over part of the screen while content plays.
Home screen placements. Sponsored tiles or banners on the TV or app home screen.
Live streaming ads. Ad breaks inserted into live events or channels.
Interactive units. Ads that invite viewers to respond with the remote, for example to see more information.

Behind the scenes, the app or video player requests an ad when a break comes up. That request can be filled by a direct campaign, a deal such as a private marketplace or programmatic guaranteed arrangement, or an open auction. Many CTV apps use server-side ad insertion, where ads are stitched into the stream so they play smoothly, like TV.

Why it matters

CTV advertising brings a television-like experience to digital buying. Ads appear full screen, often with sound on, in shared household viewing. At the same time, buyers can apply digital controls such as targeting, frequency capping and deal-based access.

For CTV publishers, it is a primary way to fund free or lower-priced streaming. The challenges are real, though. Inventory is spread across many apps and devices. Measurement and identity work differently than on web or mobile. Buyers also care a lot about transparency, wanting to know which app and which content their ads ran in, which is why tools like ads.txt and curated deals are important here.

Example

Example (illustrative): A free streaming app focused on classic films runs four short ad breaks per movie. It sells part of its inventory through a programmatic guaranteed deal to an automotive brand that wants a set volume of full-screen video impressions on the TV. The rest is offered through a private marketplace to a group of approved buyers, with an overlay format added for lighter-touch sponsorships.

IncrementX perspective

CTV is one of the core channels in IncrementX's media representation work. On the CTV page you will find the supported formats: overlay, in-stream video, home screen, live streaming and interactive, with direct deals for premium video.

For CTV and OTT publishers, the CTV representation page explains how IncrementX approaches packaging and demand. For advertisers, CTV and video inventory can be accessed through curated deals, including PMP and PG options, and through dedicated video and CTV curation packages.

CTV Advertising FAQs

They overlap but are not identical. OTT advertising covers ads in streamed content on any device, including phones and laptops. CTV advertising refers specifically to ads seen on a TV screen.

Usually not. Most in-stream CTV ads play in ad breaks that cannot be skipped, which is one reason completion rates are an important measure for CTV inventory.

It can be bought directly from a publisher, through programmatic guaranteed deals, through private marketplaces, or through open programmatic auctions. Premium CTV inventory is often sold through direct or deal-based routes.

CTV ads are delivered digitally, one stream at a time, so they can be targeted, capped and measured more like digital media, while still appearing on the main TV screen.

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