CTV Ad Agency: Connect with your ideal customer

CTV stands for Connected TV. It refers to internet-enabled televisions or devices that allow users to stream video content through apps like Netflix, Hulu, YouTube, and others. This includes:

1. Smart TVs – Televisions with built-in internet connectivity and apps.
2. Streaming Devices – External hardware like Roku, Amazon Fire Stick, Apple TV, or Google Chromecast.
3. Gaming Consoles – Systems like PlayStation, Xbox, or Nintendo Switch that support streaming apps.

Key Features of CTV:

• On-Demand Content: Viewers can access content whenever they want, unlike traditional linear TV with fixed schedules.
• Ad-Supported Models: Many CTV platforms offer free content with ads, creating opportunities for advertisers.
• Precise Targeting: Advertisers can use audience data to serve personalized ads based on interests, geography, or behavior.

Why is CTV Important for Advertising?

CTV advertising allows brands to combine the reach of traditional TV with the targeting and measurability of digital advertising. This makes it a powerful tool for engaging audiences, especially for eCommerce brands looking to drive conversions or build brand awareness.

When creating ads for Connected TV (CTV), adhering to the technical and creative specifications ensures optimal performance. While specifications can vary by platform (e.g., Hulu, Roku, or Amazon Fire TV), here are the general guidelines for CTV ad formats:

1. Video Ad Specifications

CTV ads are typically full-screen and non-skippable, similar to traditional TV ads.

Standard Video Lengths:

• 15 seconds (common for mid-rolls and pre-rolls)
• 30 seconds (standard for branding campaigns)
• Some platforms accept 60 seconds, but these are less common.

Video File Format:

• File Types: MP4 or MOV
• Aspect Ratio: 16:9 (landscape)
• Resolution: Minimum 1920×1080 (Full HD); 4K resolution is ideal where supported
• Frame Rate: 24-30 fps
• Bitrate: 8-16 Mbps

Audio Requirements:

• Format: AAC or MP3
• Channels: Stereo
• Bitrate: 192 kbps or higher
• Sample Rate: 48 kHz

2. Display Overlay Ads

Some platforms allow overlay banners that appear during video playback.

Static Image Overlay:

• File Type: PNG, JPEG, or GIF (non-animated)
• Dimensions: Often 1920×1080 pixels or smaller (varies by platform).
• File Size: Less than 1 MB

3. Interactive CTV Ads

Interactive ads encourage users to engage (e.g., with a QR code).

Additional Elements:

• QR Code: High contrast and scannable at all screen sizes
• CTA: Clear and concise text like “Scan to Shop” or “Learn More”

Dynamic Features (optional):

• Click-through URLs (to direct viewers to websites or apps)

4. Ad Serving Standards

• VAST Support: Most platforms use VAST 4.0/4.1 (Video Ad Serving Template) for delivering ads. Ensure your ad server supports this.
• File Hosting: Some platforms require ads to be hosted on specific content delivery networks (CDNs).

5. Creative Guidelines

• Brand Visibility: Include your logo within the first 3-5 seconds.
• Simple Messaging: Focus on one call-to-action (CTA).
• High Contrast: Use colors and fonts that stand out on all devices.
• No Distracting Elements: Avoid small text, fast cuts, or cluttered designs.

Pro Tip: Confirm exact specifications with the CTV platform or ad network you’re using (e.g., Roku Advertising, Hulu Ad Manager, or Amazon OTT). Some may have proprietary requirements.

The terms CTV (Connected TV) and OTT (Over-The-Top) are often used interchangeably in the advertising world, but they refer to different aspects of streaming media. Here’s a breakdown:

What is CTV?

CTV (Connected TV) refers to internet-enabled television devices used to stream content.

Examples include:

• Smart TVs: TVs with built-in apps (e.g., Samsung Smart TV).
• Streaming Devices: External devices like Roku, Amazon Fire Stick, or Apple TV.
• Gaming Consoles: PlayStation, Xbox, and Nintendo Switch.

CTV is a hardware category—it’s the physical device where people watch streaming content.

What is OTT?

OTT (Over-The-Top) refers to the method of delivering content directly to viewers via the internet, bypassing traditional cable or satellite providers.

Examples include:

• Subscription Services: Netflix, Disney+, Amazon Prime Video.
• Ad-Supported Services: Hulu (with ads), Peacock, Pluto TV, Tubi.
• Live Streaming Services: YouTube TV, Sling TV, and Hulu + Live TV.

OTT is a content delivery method—it’s the service or platform viewers use to stream content.

Key Differences

How They Work Together in Advertising

• CTV Advertising: Targets ads specifically on the CTV device, often within its ecosystem (e.g., Roku-specific ads).
• OTT Advertising: Targets ads within the streaming apps or services (e.g., Hulu or Pluto TV ads). OTT ads can be served on CTVs, mobile devices, tablets, or desktops.

In short, CTV is the “where” (device), and OTT is the “what” (content delivery).

CTV advertising offers a powerful way to engage audiences, but success requires thoughtful planning and execution. Here are CTV advertising best practices to maximize your campaigns’ effectiveness:

1. Understand Your Audience

• Leverage Data: Use first-party and third-party data to identify your target audience’s preferences, behaviors, and demographics.
• Segmentation: Divide audiences into specific segments (e.g., based on viewing habits, geographic location, or interests) for precise targeting.
• Device Usage Insight: Ensure ads are optimized for how your audience consumes content (e.g., smart TVs vs. streaming devices).

2. Craft Compelling Creative

• Focus on Storytelling: CTV ads are often non-skippable, so engage viewers with a strong narrative or emotional appeal.
• Keep It Short: Stick to 15-30 seconds for most ads to maintain attention without overwhelming.
• High-Quality Visuals: Use crisp, visually appealing designs suitable for large screens. 4K video resolution is recommended.
• Clear Branding: Feature your brand logo or name prominently within the first 5 seconds.
• Strong Call-to-Action (CTA): End with a clear, actionable CTA like “Visit Our Website,” “Scan the QR Code,” or “Download the App.”

3. Personalize the Experience

• Dynamic Creative Optimization (DCO): Adapt ads in real-time based on viewer data (e.g., location, time of day).
• Local Targeting: If relevant, personalize messaging to local audiences.
• Interactive Elements: Include QR codes, clickable overlays, or prompts to increase engagement and measure results.

4. Optimize Ad Placement

• Strategic Ad Slots: Focus on premium placements like pre-roll (before content starts) or mid-roll (during content).
• Avoid Over-Frequency: Limit the number of times an ad appears to the same user to avoid fatigue.
• Choose Platforms Wisely: Analyze which streaming services or devices resonate most with your audience (e.g., Hulu, Roku, or YouTube TV).

5. Test and Iterate

• A/B Testing: Experiment with different creatives, lengths, and CTAs to see what resonates best.
• Platform Testing: Evaluate performance across multiple platforms and devices to refine strategy.
• Monitor Engagement Metrics: Pay attention to completion rates, engagement, and conversions.

6. Leverage Data for Measurement

• Track Performance: Use real-time reporting tools to measure impressions, click-through rates, and conversions.
• Attribution Models: Apply multi-touch attribution to understand how CTV contributes to overall campaign success.
• Incrementality Testing: Compare audiences exposed to your ad versus those unexposed to measure true lift.

7. Integrate CTV into Broader Campaigns

• Cross-Channel Alignment: Ensure consistent messaging across CTV, social media, and display advertising for a cohesive brand experience.
• Retargeting Opportunities: Use CTV exposure data to retarget users on other platforms (e.g., mobile or desktop).
• Omnichannel Analytics: Combine CTV data with other digital channels to get a holistic view of campaign performance.

8. Comply with Platform Guidelines

• Follow specific ad specifications and content policies of each CTV platform (e.g., Hulu, Roku, or Amazon Fire).
• Ensure your ads meet technical requirements like resolution, file size, and format.

Pro Tip: Stay Agile

The CTV landscape evolves quickly, with new platforms and ad opportunities emerging frequently. Regularly assess trends, test new formats, and adapt your strategies to stay ahead.

By focusing on precision targeting, creative excellence, and data-driven optimizations, you can maximize ROI from your CTV advertising campaigns.

Finding CTV ad rates can be a bit complex as they vary widely depending on factors like the platform, audience targeting, and ad inventory demand. Here’s how you can gather CTV ad pricing information effectively:

1. Understand the Pricing Models

CTV ads are typically priced on a Cost Per Thousand Impressions (CPM) basis, ranging from $20 to $50+ CPM, depending on:

• Platform: Hulu and Roku often have higher rates compared to smaller or niche platforms like Tubi or Pluto TV.
• Audience Targeting: Advanced targeting (e.g., by demographics, location, or behavior) can increase CPM.
• Ad Placement: Pre-roll ads (before content starts) often cost more than mid-roll ads.
• Content Quality: Premium platforms or exclusive shows may command higher rates.

2. Reach Out to CTV Platforms Directly

Platforms like Hulu, Roku, Amazon Fire TV, and Samsung Ads provide pricing details through their sales teams or self-serve advertising platforms.

• Visit their advertising pages and submit a contact form to inquire about specific rates.
• Example platforms with self-serve tools:
  • Hulu Ad Manager (for SMBs)
  • Roku Advertising
  • YouTube CTV

3. Partner with a Demand-Side Platform (DSP)

Advertisers often buy CTV inventory through programmatic platforms. DSPs like The Trade Desk, Simpli.fi, or AdRoll provide access to CTV ad inventory and allow you to set budgets and targeting preferences while offering transparency on CPM rates.

• Programmatic platforms typically list approximate CPM ranges.
• They also provide bidding tools to optimize for your budget and goals.

4. Work with an Advertising Agency

Specialized digital advertising agencies or CTV-focused agencies can negotiate rates for you and manage campaigns across multiple platforms.

• Agencies often have access to bulk inventory and can secure competitive pricing.
• They may charge a service fee but can save time and optimize your ad spend.

5. Check for Industry Benchmarks

Research industry reports and publications for updated CPM benchmarks. For example:

• Reports from eMarketer, Statista, or IAB often include CTV ad trends and pricing data.
• Some platforms or agencies publish case studies with budget breakdowns.

6. Factors Influencing Your Costs

Be aware that your actual costs will depend on:

• Target Audience Size: Niche audiences cost more than broad audiences.
• Seasonality: Q4 (holiday season) typically sees higher rates due to increased demand.
• Creative Complexity: Interactive or dynamic ads often incur higher production costs.

Example Estimated Rates (2024 averages):

• Hulu: $30-$40 CPM (higher for premium targeting).
• Roku: $20-$30 CPM.
• Amazon Fire TV: $25-$40 CPM.
• Tubi/Pluto TV: $10-$20 CPM (lower-cost, ad-supported platforms).

Pro Tip:

Start small with a self-serve platform like Hulu Ad Manager or Roku Direct Publisher to test performance and refine your targeting. Once you have insights, scale up or negotiate better rates through direct buys or programmatic channels.

Here are some of the top acronyms used in CTV advertising and their meanings:

Technical Terms and General Acronyms

1. CTV – Connected TV
   Internet-enabled television devices like Smart TVs, Roku, or Amazon Fire Stick.

2. OTT – Over-The-Top
   Delivery of video content via the internet, bypassing traditional cable or satellite.

3. AVOD – Ad-Supported Video on Demand
   Free streaming services supported by ads (e.g., Tubi, Pluto TV, or Hulu with ads).

4. SVOD – Subscription Video on Demand
   Paid streaming platforms without ads, like Netflix or Disney+.

5. FAST – Free Ad-Supported Streaming TV
   Platforms offering live and on-demand TV for free with ads (e.g., Pluto TV, Xumo).

6. VOD – Video on Demand
   Content that viewers can watch anytime, including AVOD and SVOD services.

Advertising and Campaign Metrics

7. CPM – Cost Per Thousand Impressions
   The standard pricing model for CTV ads, measuring the cost per 1,000 ad impressions.

8. CPCV – Cost Per Completed View
   A pricing model where advertisers pay only when an ad is watched to completion.

9. CTR – Click-Through Rate
   The percentage of viewers who clicked on an ad after seeing it.

10. VCR – Video Completion Rate
    The percentage of viewers who watched an ad entirely.

11. CPA – Cost Per Action
    A metric tracking how much it costs to drive a specific action, like a website visit or app download.

Ad Delivery and Technology

12. VAST – Video Ad Serving Template
    A standard for delivering video ads across platforms, ensuring compatibility.

13. SSA – Server-Side Ad Insertion
    Also known as Dynamic Ad Insertion (DAI), this technology seamlessly integrates ads into streaming content.

14. DSP – Demand-Side Platform
    Software that allows advertisers to buy ad inventory programmatically, often used for CTV campaigns.

15. SSP – Supply-Side Platform
    Software that helps publishers sell ad space programmatically to maximize revenue.

16. OTT ID – Over-The-Top Identifier
    A unique ID used to track users across OTT platforms for targeting and measurement.

Audience and Attribution

17. MTA – Multi-Touch Attribution
    A measurement model that credits multiple touchpoints in the customer journey, including CTV exposure.

18. AID – Audience Identification Data
    Data used for precise targeting in CTV and OTT campaigns.

19. GRP – Gross Rating Point
    A traditional TV metric, sometimes adapted for CTV to measure audience reach and frequency.

20. TAR – Target Audience Rating
    A measurement of the effectiveness of an ad in reaching the intended audience.

These acronyms form the foundation of the CTV advertising landscape, helping marketers understand the ecosystem and execute campaigns effectively.