CTV Advertising Explained: Why Smart Agencies Are Shifting to Connected TV

The way people watch TV has changed. Instead of sitting down to watch cable or satellite, most viewers now stream their favorite shows on platforms like Hulu, Netflix, and YouTube TV. This shift has opened up a big opportunity for businesses and marketers through something called CTV advertising, short for Connected TV advertising. In this article, we’ll explain what CTV advertising is, how it works, and why smart agencies are quickly shifting their budgets and strategies in this direction. Whether you're running a national campaign or helping a small business like an  embroidery Knoxville shop, Connected TV can give you powerful results with better targeting and reach.

What Is CTV Advertising?

CTV stands for Connected TV, which refers to TVs that are connected to the internet. This includes smart TVs, gaming consoles, and devices like Roku, Amazon Fire Stick, and Apple TV. CTV advertising is the practice of placing video ads on these platforms, where viewers are streaming their content.

Instead of buying commercial time on traditional broadcast TV, businesses now have the option to run ads during a Hulu episode or before a YouTube TV stream. The beauty of CTV is that it combines the impact of television with the precision of digital marketing.

Why Traditional TV Is Fading

For decades, traditional TV was the main way for businesses to reach large audiences. But now, things are different. Fewer people are watching cable, and more are choosing to stream content when they want, without commercials. Traditional TV ads are expensive, hard to target, and don’t offer much data about who actually saw the ad.

Smart agencies realize this and are looking for better, more modern alternatives. CTV advertising allows you to target specific audiences based on age, location, interests, and even behavior. You can track views, measure performance, and adjust your campaigns in real time.

How CTV Advertising Works

Here’s how CTV advertising works in simple terms:

1. A viewer logs onto a streaming service like Hulu or Tubi using their smart TV.

2. Before or during their show, a short video ad plays.

3. The ad is targeted to them based on their viewing habits, interests, and location.

4. You, the advertiser, get detailed reports showing who saw the ad, how many times, and what actions they took.

This setup is much smarter than traditional TV. It’s like running a YouTube ad but on a big screen, during a show your ideal customer is already watching.

Why Agencies Are Making the Shift

Agencies are always looking for better ROI (return on investment) for their clients. CTV advertising offers several key benefits that make it a top choice:

1. Better Targeting

With traditional TV, you buy ad time on a channel and hope the right people are watching. With CTV, you can target your ideal customer by age, gender, ZIP code, interests, or behavior. Want to reach small business owners who enjoy DIY crafts in Knoxville? You can. That’s a perfect way to market a local service like embroidery Knoxville.

2. More Measurable Results

One of the biggest advantages of CTV is data. You get real-time tracking that shows how many people saw your ad, what device they used, when they watched it, and even if they visited your website afterward. This helps agencies fine-tune their strategy and prove value to clients.

3. Cost Efficiency

CTV ads often cost less than traditional TV spots and deliver more precise results. You don’t have to waste money broadcasting to people who don’t care about your product. Instead, your dollars go directly toward reaching real prospects.

4. Higher Engagement

CTV viewers are often more engaged than traditional TV viewers. Many are watching shows on-demand and are paying more attention. Plus, there are fewer commercials, so your ad stands out more.

Perfect for Local Businesses Like Embroidery Shops

Let’s take a real-world example. Say you're helping a small business that offers embroidery in Knoxville. They want to grow their local brand and reach more people in the area.

With traditional TV, you’d have to buy a large ad slot that covers the whole city or region—expensive and not very targeted. But with CTV, you can run a short, sharp video ad that only plays for people in Knoxville who are interested in fashion, small business, or crafting. You can include a call to action that drives viewers to visit the embroidery shop’s website, follow them on social media, or stop by the store.

Suddenly, a local business that could never afford traditional TV can run polished, effective ads on real TV screens. That’s the power of CTV advertising.

Types of Ads You Can Run on CTV

There are different types of ads you can run with Connected TV:

• Pre-roll ads – These play before the viewer's content starts.

• Mid-roll ads – These appear in the middle of a show, like a regular TV commercial.

• Display or interactive overlays – These are clickable banners or pop-ups that show up during the video.

All these ads can be customized to suit your client’s brand and message. You can even repurpose video ads you've used on social media and run them as CTV ads for broader impact.

Platforms That Support CTV Ads

Some of the most popular CTV platforms include:

• Hulu

• Roku

• Tubi

• Amazon Fire TV

• YouTube TV

• Peacock

• Pluto TV

Each of these platforms gives access to different audience segments. Depending on your client’s goals, you can choose the right mix of platforms for their campaign.

How to Get Started with CTV Advertising

You don’t need to be a tech expert to offer CTV advertising to your clients. In fact, many agencies partner with white label providers like Label Industries to handle the backend while they manage the client relationship.

Here’s how to get started:

1. Talk to your clients about adding CTV to their marketing mix.

2. Create or repurpose video content they already have.

3. Work with a CTV partner to launch and manage the campaign.

4. Use the data and reports to measure success and optimize the strategy.

It’s a simple way to add high-value services to your agency without hiring more people or learning new software.

The Future Is Streaming—Don’t Get Left Behind

CTV is growing fast. Studies show that more than 80% of households in the U.S. now stream content on Connected TV devices. That number will only go up. If your agency isn’t offering CTV advertising yet, you’re missing out on a major opportunity.

Businesses—big and small—are looking for new ways to connect with customers in the digital age. Whether it’s a national retail brand or a local embroidery Knoxville store, every business can benefit from smart, targeted, affordable CTV ads.

Final Thoughts

CTV advertising is the future of video marketing. It combines the best of TV and digital, giving your clients wide reach, precise targeting, and measurable results. Smart agencies are making the shift now, offering CTV as a powerful service that sets them apart from the competition.

Whether you're helping national brands or supporting local businesses like embroidery Knoxville, CTV advertising gives you the tools to deliver real results without breaking the bank. And with partners like Label Industries offering white label support, it’s easier than ever to get started.

If your agency wants to grow, impress clients, and stay ahead of the curve, now is the time to embrace CTV. The screen may be connected—but more importantly, so is the opportunity.