Connected TV (CTV) Advertising: A Complete Guide for 2026
The way we watch television has fundamentally changed. Linear TV is no longer the only game in town. Today, streaming is king. As of late 2025, streaming accounted for a massive 47.5% of all U.S. television viewing time, and over 90% of U.S. households now use a connected TV (CTV) device. This seismic shift in viewing habits has created a powerful new advertising channel: Connected TV.
For brands, CTV advertising represents a golden opportunity to reach highly engaged audiences with the precision of digital marketing and the impact of television. But what exactly is CTV, and how can you leverage it effectively? This guide will walk you through everything you need to know about CTV advertising in 2026.
As a production company that creates content for every screen, from TV commercials to digital series, Beverly Boy Productions is uniquely positioned to help brands navigate this new landscape. We understand the technical requirements, the creative best practices, and the strategic considerations that drive success in the world of CTV.
What is Connected TV (CTV)?
Connected TV refers to any television set that is connected to the internet and can stream video content. This includes:
- Smart TVs: TVs with built-in internet connectivity (e.g., Samsung, Vizio, LG).
- Connected Devices: External devices that plug into a TV, such as Roku, Apple TV, Amazon Fire TV, and Chromecast.
- Gaming Consoles: Consoles like PlayStation and Xbox that offer streaming apps.
It is important to distinguish CTV from OTT (Over-the-Top), which refers to the video content itself that is delivered over the internet, bypassing traditional cable or satellite providers. In short, you watch OTT content on a CTV device.
Why CTV Advertising is a Game-Changer for Brands
CTV advertising is growing at an explosive rate for a reason. U.S. ad spend on CTV is projected to hit nearly $38 billion in 2026, a 15% increase from 2025. Here is why marketers are flocking to the platform:
- Precision Targeting: Unlike traditional TV, which offers broad demographic targeting, CTV allows for the same granular targeting as digital advertising. You can target audiences based on demographics, interests, viewing habits, and even purchase data.
- Engaged Audience: CTV viewers are typically more engaged than linear TV viewers. They have actively chosen what to watch, and ads are often non-skippable.
- Measurable ROI: CTV provides robust measurement and attribution capabilities. You can track impressions, completion rates, and even the impact on website traffic and sales. This is a huge advantage; 53% of marketing leaders say they would increase their CTV budgets if they had better ROI measurement.
- Incremental Reach: CTV allows you to reach cord-cutters and cord-nevers who are not accessible through traditional TV advertising.
- Brand Safety: CTV offers a premium, brand-safe environment for your ads, with high-quality content and limited ad clutter.
Key CTV Advertising Trends for 2026
The CTV landscape is constantly evolving. Here are the key trends to watch in 2026:
1. The Rise of Interactive and Shoppable Formats
CTV is moving beyond the standard 30-second spot. Interactive ad formats, such as QR codes, polls, and overlays, are driving significantly higher engagement. Engagement per impression on interactive CTV ads nearly doubled in the past year, reaching 1.94%. These formats have been shown to increase unaided brand recall by 36% and purchase intent by 40%.
Imagine a viewer watching a cooking show and seeing an ad for a new kitchen appliance. With a simple click of their remote or by scanning a QR code on their phone, they can learn more about the product, find a local retailer, or even make a purchase directly from their TV. This is the future of CTV advertising.
2. Convergence with Retail Media
Retail media networks are a major force in digital advertising, and they are now making a big push into CTV. Retailers like Walmart and Amazon are leveraging their vast first-party data to offer highly targeted advertising on their CTV platforms. This allows brands to connect ad viewership directly to purchase data, solving one of the biggest challenges in advertising attribution.
For example, a brand can target ads to viewers who have recently purchased similar products on a retailer’s website. This level of precision is simply not possible with traditional TV advertising.
3. The Growth of Programmatic CTV
Programmatic advertising, which uses automation to buy and sell ad inventory, is becoming the dominant way to transact in CTV. This allows for more efficient and targeted ad buying, but it also requires a sophisticated understanding of the programmatic ecosystem.
Programmatic CTV allows brands to bid on ad inventory in real-time, ensuring they are reaching the right audience at the right price. It also provides greater flexibility and control over campaign management.
4. Expansion of Ad-Supported Viewing
The proliferation of Free Ad-Supported Streaming TV (FAST) services like Pluto TV and Tubi, along with the introduction of ad-supported tiers by major subscription services like Netflix and Disney+, is massively expanding the available ad inventory in the CTV market. FAST services are now used in approximately 60% of U.S. households.
This means that brands have more options than ever for reaching their target audience on CTV. Whether you are looking for a broad reach or a highly targeted niche, there is a CTV platform that can meet your needs.
Building a Successful CTV Advertising Strategy
Ready to get started with CTV? Here are the key steps to building a successful strategy:
1. Define Your Goals and Audience
As with any marketing campaign, start by defining your objectives and identifying your target audience. Are you looking to build brand awareness, drive website traffic, or increase sales? Who are you trying to reach? What are their interests and viewing habits?
2. Develop High-Impact Creative
CTV is a premium viewing experience, so your creative needs to be top-notch. Invest in high-quality video production that is visually compelling and tells a great story. Your ad should be designed for the big screen, with high-resolution visuals and clear, impactful audio.
Consider using interactive elements like QR codes or overlays to drive engagement and provide a clear call-to-action. Remember, 85% of mobile videos are viewed without sound, but CTV is different. Viewers are watching on a large screen with the sound on, so make sure your audio is as compelling as your visuals.
3. Choose Your Platforms and Partners
Decide whether you want to buy directly from publishers (e.g., Hulu, Peacock) or use a demand-side platform (DSP) to buy programmatically across multiple platforms. Each approach has its own advantages and disadvantages, so it is important to choose the one that best aligns with your goals and budget.
Working with an experienced video production company like Beverly Boy Productions can help you navigate these choices and ensure your ads are optimized for each platform.
4. Leverage Data for Targeting
Use first-party and third-party data to build precise audience segments. This is one of the biggest advantages of CTV advertising, so make sure you are taking full advantage of it. You can target audiences based on demographics, interests, viewing habits, and even purchase data.
5. Measure and Optimize
Continuously monitor your campaign performance and use the data to optimize your targeting, creative, and budget allocation. Supporting your CTV campaigns with other channels like paid search can lead to a 22.3% lift in conversion rates.
Track metrics like impressions, completion rates, click-through rates, and conversions. Use this data to identify what is working and what is not, and make adjustments accordingly.
The Future of Television is Here
CTV advertising is no longer an experimental channel; it is an essential component of a modern marketing mix. By understanding the trends, leveraging the data, and investing in high-quality creative, you can harness the power of CTV to drive significant growth for your brand.
The world of television is changing, but the power of a great story remains the same. At Beverly Boy Productions, we are experts in crafting compelling narratives for every screen. Whether you need a stunning ad for a national CTV campaign or a series of targeted videos for a niche audience, we have the expertise to deliver.
We offer a full range of video production services, from corporate video production and training videos to live streaming and final delivery. We have been trusted by brands like Forbes, Dr Pepper, and OWN, and we bring that same level of dedication to every project.
Explore our portfolio to see examples of our work, or read our client reviews to hear directly from the brands we have partnered with.
Let’s create the future of television advertising together. Contact us today to learn more about our video production services and how we can help you succeed in the world of CTV. You can also request a quote to get started.
