Why Connected TV (CTV) Demands a New Advertising Playbook

The Connected TV (CTV) ad market is surging, yet many advertisers are stuck using outdated strategies that limit their success. To unlock CTV’s full potential, it’s time to rethink the approach.

Connected TV Explosive Growth

CTV has transformed from a niche channel into a cornerstone of modern media plans. As viewers shift to streaming platforms like Roku, Hulu, and YouTube TV, CTV ad spend is skyrocketing. eMarketer forecasts U.S. CTV ad spend to hit nearly $40 billion in 2025, outpacing traditional TV’s growth and capturing a growing slice of budgets.

However, many advertisers still approach CTV with a traditional TV mindset—focusing on content over audience, relying on legacy metrics, and underutilizing programmatic tools. To succeed, brands must adapt to CTV’s unique strengths.

Key Differences and Winning Strategies

1. Audience-First, Not Content-First

Traditional TV buying targets specific shows or time slots, aiming for broad demographics. CTV shifts the focus to precise audience targeting, leveraging:

• Demographics and psychographics

• Behavioral data (e.g., purchase history or viewing habits)

• Location and household-level data

• Custom and lookalike audiences

Unlike linear TV’s broad strokes, CTV lets advertisers reach the right viewers, not just the right programs.

2. Programmatic Power

CTV’s programmatic capabilities set it apart from traditional TV’s manual, upfront-heavy process. Programmatic CTV enables:

• Real-time access to inventory across streaming platforms

• Precision targeting with first- and third-party data

• Mid-campaign optimization and budget reallocation

• Frequency capping to prevent ad fatigue

• Dynamic bidding for cost-efficient impressions

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This agility allows advertisers to test, refine, and scale campaigns efficiently across the fragmented CTV ecosystem.

3. Actionable Measurement

Traditional TV metrics like GRPs and reach estimates are often imprecise and lack attribution. CTV offers richer insights, including:

• Impression-level tracking

• View-through and completion rates

• Cross-device attribution (e.g., linking CTV ads to website visits or purchases)

• Incrementality and lift studies

• Brand recall metrics

These metrics tie campaigns directly to business outcomes, justifying CTV’s higher CPMs with clear ROI.

4. Creative That Fits the Medium

Repurposing 30-second TV ads for CTV often falls flat. CTV viewers engage differently—watching on-demand across devices in varied contexts. Effective CTV creative strategies include:

• Shorter ads (15s or 6s) for impact

• Contextual alignment with content or platform

• Dynamic creative optimization (DCO) for tailored messaging

• Strong calls to action for engagement

Real-time A/B testing and creative swaps further boost performance.

5. Avoiding the “Digital TV” Misstep

Treating CTV as streamed traditional TV leads to errors like prioritizing reach over precision or sticking to walled garden platforms with limited transparency. CTV is a digital performance channel, blending TV’s storytelling with digital’s precision. Key considerations include:

• Managing ad podding and competitive separation

• Optimizing for device-specific performance (e.g., Smart TVs vs. mobile)

• Navigating streaming platform nuances

• Ensuring viewability and fraud prevention

Purpose-built CTV strategies and partners are essential.

6. Balancing Walled Gardens and Open Web

Major platforms like YouTube and Amazon offer robust CTV inventory but often limit data access and transparency. Open-web CTV solutions provide:

• Greater campaign visibility

• Interoperability with other channels

• Independent measurement options

• Flexibility without platform lock-in

Platforms like Lumeriq deliver scale and precision while maintaining transparency.

7. Hybrid Strategies for Maximum Impact

Traditional TV still shines for massive reach during events like the Super Bowl. However, hybrid models combining linear TV’s scale with CTV’s precision are gaining traction. Benefits include:

• Extending reach beyond cable audiences

• Sequential storytelling across channels

• Retargeting high-value viewers

• Filling gaps in declining live TV viewership

As CTV-only households grow, this balance will tilt further toward streaming.

The Path Forward

CTV is no longer a future trend—it’s here, reshaping video advertising. Clinging to traditional TV tactics risks inefficiency and missed opportunities. Advertisers who embrace CTV’s strengths—audience targeting, programmatic efficiency, and actionable metrics—are driving stronger results and better ROI.

At Lumeriq, we empower brands to thrive in this new landscape with tailored programmatic solutions, from strategy to creative to attribution. The CTV era demands a new playbook. The winners are those who adapt.