Boardroom Definition
Connected TV (CTV) refers to any television set used to stream video content over the internet. This includes Smart TVs, gaming consoles, and streaming devices (e.g., Roku, Apple TV, Amazon Fire Stick). Unlike traditional "Linear TV" which relies on cable or satellite schedules, CTV allows for on-demand consumption and, critically, enables advertisers to serve digital, data-driven ads to specific households rather than broad demographic blocks.
While CPM is the standard purchasing currency, the efficiency of CTV is best measured by the CPCV (Cost Per Completed View), as this accounts for drop-off rates in non-skippable versus skippable environments.
CPCV = Total Cost / Total Completed Views
Additionally, planners utilize a Co-Viewing Factor to estimate true reach. Since CTV is often watched by multiple people in a living room, a single "Impression" (1 device) often equals 1.2 to 1.5 "Viewers."
Total Reach = Impressions * Co-Viewing Multiplier (avg. 1.2–1.5)
The Real Scoop
In 2026, the distinction between "TV" and "Digital Video" has evaporated. CTV is the new hearth of the home. The "Insider" reality is that CTV offers the prestige of TV with the precision of a banner ad.
The real power player here is ACR (Automatic Content Recognition) data. Smart TVs (like Samsung or Vizio) "watch" what is on the glass—recognizing if a user is playing a video game or watching a specific sports match on linear TV—and sell that data to advertisers for retargeting. This allows brands to conquer competitors by serving ads to households that just saw a competitor's commercial on cable.
Watch Outs
- Frequency Cap Failures: Because inventory is bought across multiple apps (e.g., Hulu, Pluto, Tubi), a user often sees the same ad back-to-back. This is a failure of "Universal Frequency Capping" and damages brand sentiment.
- The "CTV" Mobile Trick: Unscrupulous vendors sometimes package mobile or tablet inventory as "CTV" to charge higher premiums. Always verify the Device Type in your reporting to ensure you paid for the "Big Screen" experience.
- Inventory Fragmentation: Unlike buying a slot on NBC, buying CTV often requires stitching together inventory from 10+ different publishers or using an aggregator, which introduces "Tech Tax" layers that eat into working media.
