How to Crack the Connected TV Code

You're scrolling through streaming TV options, debating between Severance, Yellowstone, or catching up on The Pitt. You're not alone. Streaming now accounts for 40% of total TV viewing time. 

But while viewers have enthusiastically embraced streaming, advertisers are still figuring out how to make it work. 

Our new report examines four essential strategies for conquering Connected TV advertising without falling into the common traps of overpriced inventory, inaccurate targeting, or flawed attribution. 

 

 

1. Rethink CTV costs to drive efficiency.

CTV advertising promised accessibility but delivered premium pricing instead. While CPMs are finally dropping (only Netflix and Max are projected to maintain CPMs above $30), the channel remains expensive compared to linear TV. 

The problem? Middlemen. Last year, the average CTV platform authorized 30 supply-side platforms to sell inventory, with resellers charging 39% higher prices than direct sellers. 

Smart advertisers are fighting back by diversifying their platform mix beyond premium publishers, embracing technology solutions, and partnering with agencies who have established direct relationships to secure competitive rates. 
 

2. Target smarter, not narrower.

The myth is that more targeting equals better results. The reality is hypertargeting is fundamentally flawed. 

Most third-party data targeting relies on household IP addresses and third-party data matching, which can't distinguish between different household members. Even worse, one study found about half the data used for CTV targeting is simply wrong. 

Marketers are moving away from layering expensive third-party segments and instead embracing first-party data, retail media partnerships, and machine learning tools that identify high-intent viewers without premium price tags. 
 

3. Prove performance beyond a doubt.

Linear and Connected TV rank among the top three hardest marketing channels to measure. Many marketers believed CTV's digital DNA meant automatic measurability, but they quickly discovered streaming faces unique challenges. 

IP matching struggles with standardization issues, each publisher uses different methodologies, and premium platforms often function as walled gardens limiting data access. 

The solution? Use multiple measurement models simultaneously, from pixel tracking to incrementality testing to media mix modeling, to build a comprehensive view of performance. This multi-pronged approach provides accountability that was impossible just a few years ago. 
 

4. Break down linear and CTV silos.

Despite CTV's growth, linear TV still delivers unmatched reach, accounting for almost 6X more ad viewing time than CTV on TV screens in 2024. 

The most effective strategies aren't choosing sides—they're strategically integrating both channels. This creates opportunities for sequential messaging, maximizes total audience reach while minimizing wasteful overlap, and ensures a unified brand experience. 

How do I get the report?

1. Download the full report here.
2. Or listen to an AI overview produced by NotebookLM.