Connected TV, or CTV, is content streamed on a television that connects to the Internet. Instead of using broadcast or cable signals, the TV plays content through installed apps. The term is often mixed up with OTT, smart TVs, and streaming apps, even though they describe different layers of the same setup. In this article, we’ll help clear out the confusion.
CTV means using a TV that connects to the Internet to watch content instead of broadcast or cable signals. If a TV set plays video content through apps, it is considered a CTV.
Common examples help clarify how CTV refers to real devices and setups:
In each case, the screen is still a television, but the delivery method changes.
To understand CTV, it helps to separate the device, the software, and how streaming content reaches the TV screen.
OTT, short for over the top, refers to video content delivered through the Internet, without relying on traditional cable or broadcast systems.
When consumers watch shows on phones, laptops, or tablets using streaming services, they are watching OTT content, even though no TV is involved.
When OTT content plays on a television using an Internet connection, it becomes CTV viewing. In this setup, OTT handles delivery, while the TV acts as the viewing screen.
To break it down:
A smart TV is a type of connected TV device, but the terms are not interchangeable. A smart TV refers to the hardware itself. It is a television built with an Internet connection and preinstalled apps.
When that TV plays streaming content online, it functions as a connected TV device.
Streaming apps are different. They are software, not devices. These apps run on devices and deliver video content to the screen.
This overlap causes confusion, especially in everyday conversations:
Once CTV is defined, the next step is understanding how ads appear, load, and display during streaming TV viewing.
CTV ads appear inside ad-supported streaming apps on CTV devices. These ads play within the video content itself, much like commercial breaks during traditional TV viewing. If a CTV app offers free or lower-cost access, ads are usually part of the experience.
The placement depends on how the streaming app is designed. Some apps show ads before content starts, while others insert them during longer programs.
Common video ads formats on connected TV advertising include:
These CTV ads are built specifically for large screens and shared viewing. They are not banners or overlays.
CTV advertising is delivered through the Internet, not through broadcast towers or cable signals.
When someone opens a streaming app on a CTV device, the app requests ads from online ad servers. Those ads load the same way video content does, using the existing Internet connection. This process is part of digital advertising, even though the ad appears on a television screen.
Targeting in CTV advertising works at a high level and stays less personal than mobile ads. Instead of tracking individuals, advertisers focus on context.
Common targeting signals include:
Measuring CTV advertising focuses on simple delivery signals rather than direct interaction. Since ads run on a TV screen, there are no clicks or taps. Instead, performance is tracked using viewing-based signals that show how video ads were delivered and watched.
The most common CTV metrics include:
These signals help advertisers understand exposure without overcomplicating reporting. Measurement differs from linear TV, where reporting relies on panels and estimates.
With connected TV advertising, delivery is confirmed through the Internet, making results more direct.
At the same time, CTV measurement is not the same as mobile tracking. There are no user-level actions or real-time feedback. Viewing is passive, shared, and screen-based.
Once performance is clear, it helps to see why advertisers combine CTV advertising with other TV advertising channels.
CTV advertising differs from linear television advertising in how ads are delivered, measured, and adjusted.
Linear TV relies on fixed schedules and broad audience estimates. Ads run at set times, often reaching viewers who are not the intended audience. Changes usually take time and affect entire channels.
With connected TV, ads appear during on-demand viewing. Consumers choose what to watch and when to watch it. This reduces wasted exposure and gives advertisers more control over placement.
Measurement is also more direct, since delivery happens through the Internet, not panel-based estimates.
Key differences between CTV and linear TV include:
Unlike traditional TV advertising, CTV advertising fits modern viewing habits, where flexibility and relevance matter more than volume alone.
CTV advertising differs from YouTube and mobile video ads mainly because of screen size and viewing context. CTV runs on a large TV screen, often watched from a distance and shared with others.
On mobile or YouTube, viewing is more personal and interactive. Consumers hold the device, skip quickly, or tap away. That makes those channels better suited for direct actions, while connected TV supports broader messaging.
Because of this setup, advertisers often use CTV to reach specific audiences, rather than drive instant clicks or conversions.
Many CTV apps are free to use and rely on ads to support ongoing operation. Instead of charging users, these apps include video ads during streaming TV playback.
For developers, monetization is less about scale and more about sustainability. CTV advertising supports apps that deliver video content without paywalls, while keeping access simple for audiences.
Common monetization sources include:
Some developers also look at optional tools, such as the Honeygain SDK – a background monetization SDK.
The goal is not aggressive growth, but finding simple ways to monetize an app that help cover hosting, updates, and maintenance.
CTV fits alongside mobile, desktop, and web streaming, rather than replacing them. Consumers use different screens for different moments.
Phones and laptops suit short sessions, while TV screens support longer viewing. Streaming content often moves between devices, but the television remains central for shared or lean-back viewing.
TV screens still matter because of size, sound, and focus. A large television set creates space for high-quality content, including movies, series, and live sports.
Netflix is not a CTV platform. When watched on a TV, it reaches streaming audiences through connected devices, but Netflix itself does not sell OTT advertising.
For advertisers, CTV advertising works as a new channel that supports brand reach on big screens. It fits cord cutters, supports digital content, and offers access to premium CTV inventory.
Key CTV metrics include impressions, reach, and completed view. Reporting may also use third-party data, but results stay high-level and reflect shared TV viewing, not individual actions.
CTV devices include set top boxes, streaming sticks, external devices like Amazon Fire Stick, and apps on gaming consoles. Streaming platforms like YouTube TV or Prime Video run across these CTV platforms.