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Streaming 101: How connected TV ads work

Streaming has become the primary viewing method for American TV audiences. CTV advertising reaches those viewers with the targeting of digital and the reach of linear TV. Here’s everything you need to start.
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TV streaming reach officially surpassed traditional TV reach among A18-49*
chart-weekly-hours-by-source_1

* Source: Roku analysis of Nielsen data, 2026 

What is CTV advertising?

CTV advertising is digital advertising delivered to viewers watching content on internet-connected televisions — including smart TVs, streaming sticks, and set-top boxes. Unlike linear TV, CTV ads are targeted to specific audiences using first-party data and behavioral signals, and results are measured against real business outcomes such as site visits, purchases and brand lift. CTV advertising combines the reach and visual impact of television with the measurement of digital marketing channels.

The differences between CTV and linear TV for advertisers

CTV reaches the audiences linear TV can’t. More than 69% of Roku households are cordless — meaning cable and broadcast buys miss them entirely. The Roku platform operates at the OS level, which means Roku advertising reaches viewers regardless of which streaming app or channel they’re watching. 

69%

of Roku households are cord-cutters — unreachable via traditional TV 1

38%

of Roku users can’t be reached on any other TV streaming device 1

 

Dimension CTV Advertising  Linear TV 
Targeting  First-party audience data — by behavior, interest, purchase history  Age and gender demo averages only
Reach Reaches cord-cutters, cord-nevers and light TV viewers  Misses any viewer who doesn’t watch broadcast or cable 
Measurement  Site visits, purchases, ROAS, brand lift  Panel-based estimates, weeks delayed
Optimization  Campaigns adjust in real time using performance signals  Fixed buys locked in months ahead 
Frequency control  Household-level frequency capping across apps and channels  No cross-network frequency control 
Ad formats  Shoppable, interactive, pause ads, home screen takeovers, video Standard :15 and :30 spots 
Attribution  Deterministic matching to in-store and online purchase data  Modeled attribution with high uncertainty 


1 Roku Internal Data, 2025

What ad formats are available on Roku?

Roku advertising isn’t just in-stream video. The Roku OS opens up every surface — home screen, pause states, screensaver, and the content itself — to high-impact, targeted placements. 

 
Explore our ad types
TV Frame
Soccer Zone Video

Proven Performance

+47%

purchase intent lift with Action Ads vs. standard Roku video 1

45%

of shoppers who purchased via Instacart campaigns were new-to-brand 2

2.5-3x

ROAS improvement for advertisers running across Roku and Amazon 3

+31%

brand awareness lift for Action Ads vs. standard video ads 1

1 Kantar Millward Brown, 2022–2024
2 Roku + Instacart Data, 2024; 22 campaigns
3 Amazon Internal, 2025
Case Study

How Jennifer Aniston's brand LolaVie reached new customers on CTV

“Roku Ads Manager was a key part of our overall marketing mix, helping us connect LolaVie with viewers who ultimately became customers.” -Joel Ronkin, CEO of LolaVie

Read the case study
Screenshot 2026-08-24 at 5.58.41 PM

Additional Resources
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Streaming 101 | Blog | Guides & Reports

New to streaming and CTV? Read our quick overview for advertisers

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Insights & Analysis | Guides & Reports | AVOD

FAST TV Statistics: Roku and Horizon study the rise of free, ad-supported TV

Kirk1-Getting%20Started
Streaming 101 | Action Ads | TV streaming

How to get started with Roku Ads Manager

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