CTV Advertising: Why Connected TV Is the Fastest-Growing Ad Channel in 2025

Linear television — live broadcast and cable watched on a scheduled timetable — is in structural decline. Cord-cutting accelerated during the pandemic and has never reversed. In the UK, 15.9 million households subscribe to streaming services compared to 14.9 million paying for traditional pay TV. In the US, streaming viewing time surpassed cable viewing in 2022 for the first time. But television advertising budgets haven't disappeared with linear viewing — they've followed the eyeballs to connected TV. CTV advertising — ads served to internet-connected televisions via streaming apps and smart TV platforms — is now the fastest-growing segment of the entire digital advertising market, with global CTV ad spend projected to exceed $40 billion in 2025. For publishers with video content libraries and for advertisers seeking premium video reach, understanding CTV is no longer optional.

What Is Connected TV (CTV) and How Is It Different?

Connected TV refers to any television that connects to the internet and can stream content — smart TVs (Samsung, LG, Sony), streaming devices (Roku, Amazon Fire TV, Apple TV, Chromecast), and gaming consoles (PlayStation, Xbox) used for streaming. The content delivered to these devices comes via Over-The-Top (OTT) services — streaming platforms that deliver video content over the internet rather than through traditional cable or satellite infrastructure. Key OTT platforms include Netflix, Disney+, Amazon Prime Video, Hulu, Peacock, Channel 4 streaming, ITV X, and dozens of AVOD (Ad-Supported Video on Demand) services like Pluto TV, Tubi, and Samsung TV Plus. CTV advertising specifically refers to ads served within these streaming environments on TV screens.

Why CTV CPMs Are the Highest in Digital Advertising

CTV advertising commands the highest CPMs in digital advertising — typically £15–45 CPM compared to £2–8 for standard digital display. Multiple factors drive this premium. Audience quality: CTV viewers are self-selected by their willingness to pay for premium streaming or their engagement with free AVOD content — a more valuable consumer profile than typical web browsing audiences. Ad completion rates: CTV ads achieve 95–98% completion rates because viewers are engaged in a lean-back, focused viewing context — compared to 30–60% for desktop pre-roll and 20–40% for mobile video. Inventory scarcity: premium streaming content minutes are finite, and advertiser demand is growing faster than supply. Brand safety: CTV inventory is sold through curated publisher relationships rather than open exchanges, providing advertisers with confidence in the content context.

CTV Ad Formats: What Works in the Streaming Environment

CTV advertising encompasses several distinct format types. Pre-roll and mid-roll video ads (15–30 seconds) play before or during streaming content — the most common and highest-CPM format. These are non-skippable in most premium environments, guaranteeing full completion. Pause ads appear when a viewer pauses content — a relatively new format that delivers brand impressions in a non-interruption context. Overlay ads appear as banner-style units over streaming content — less common in premium environments but used on AVOD platforms. Interactive overlays prompt viewer engagement (QR codes to mobile device, 'learn more' CTAs) — early in adoption but showing strong engagement rates when implemented. Branded content integrations within streaming originals represent the premium end of CTV advertising but require direct publisher relationships.

Programmatic CTV: How the Buying Process Works

CTV advertising is primarily purchased programmatically through one of three methods. Open Market RTB: publishers make inventory available through programmatic exchanges (FreeWheel, SpotX, Magnite) where DSPs bid in real time. CPMs are typically lower but access is broad. Private Marketplace (PMP) Deals: publishers offer curated inventory packages to specific advertisers at negotiated floor prices — the most common premium CTV buying method. Programmatic Guaranteed: a fixed CPM and guaranteed delivery volume agreed in advance between publisher and advertiser, executed programmatically. The dominant DSPs for CTV buying are The Trade Desk (market leader), DV360 (Google), Amazon DSP, and Xandr. Publishers monetising CTV inventory work through SSPs (Supply-Side Platforms) that aggregate their inventory and make it accessible to these buyers.

For Publishers: Monetising CTV Inventory with Click Dudes

Publishers with connected TV content — streaming channels, AVOD apps, smart TV applications, or streaming content libraries — have access to the highest CPMs in digital advertising through CTV monetisation. Click Dudes' CTV monetisation solution connects publisher inventory to premium demand through direct advertiser relationships and programmatic channels simultaneously. Our platform manages price floors optimised by audience segment, content category, daypart, and device type — ensuring publishers capture maximum value from every ad impression. Publishers integrating Click Dudes' CTV stack gain access to header bidding across multiple video SSPs, direct demand relationships with premium brands and agencies, and AI-driven floor optimisation that continuously adjusts to real-time auction dynamics.

The CTV Advertising Opportunity by Category

• AVOD (Ad-Supported Video on Demand): Free streaming platforms monetised through ads. Growing fastest as consumers seek cost-effective alternatives to paid subscriptions.
• FAST Channels (Free Ad-Supported Streaming Television): Linear-style channels streamed via connected TV. Samsung TV Plus, Pluto TV, Plex leading growth. Excellent inventory for direct-response advertisers.
• Premium SVOD with Ad Tiers: Netflix, Disney+, and Amazon now offering ad-supported tiers at lower price points — a massive new premium CTV inventory source.
• Live Streaming Sports: The final major premium TV category moving to streaming. Sky, DAZN, and Amazon Prime Sport driving premium CPMs for live event inventory.
• Publisher Owned Streaming Apps: Broadcasters and content owners with their own apps (Channel 4 streaming, ITV X, BBC iPlayer) commanding premium CPMs from loyal audiences.