Similar to traditional TV advertising, CTV advertising involves identifying a target audience, creating engaging ads, and purchasing media slots on streaming services. However, CTV ads are typically sold through auctions in a private marketplace, where advertisers set maximum bids. Unlike traditional TV ads, the exact timing and content pairing of CTV ads are less predictable, as they can appear before, during, or after streaming content, on a wide range of devices including smartphones, tablets, and smart TVs.

CTV advertising offers advanced targeting options, such as behavioral, demographic, and contextual targeting, to ensure ads reach the most relevant audience. Various ad formats, pause ads, and interactive ads enhance engagement. These innovative formats allow advertisers to deliver personalized and interactive experiences that traditional TV ads cannot offer.

Despite the potentially higher costs, CTV ads can be highly effective, with metrics like reach, video completion rate, viewability, and attribution providing insights into campaign performance.