Connected TV Advertising: The New Frontier of Audience Targeting

You walk into your living room, the evening news comes on your smart TV, and within seconds your screen shows an ad tailored to your city, your interests, and your device habits. That’s not magic—it’s the power of Connected TV (CTV).

CTV has evolved beyond streaming video. It’s now a full-fledged ad channel that blends the scale of television with the targeting and measurability of digital. In 2025, CTV is no longer experimental—it’s essential.

This article will dig into why CTV is gaining momentum, how it works, the regional landscape (especially Latin America), challenges, strategies, and what the future holds.

The Momentum Behind CTV: Why It’s Accelerating in 2025

Explosive Growth & Programmatic Adoption

• In 2025, programmatically bought CTV advertising is projected to be ~USD $27 billion, accounting for over 84 % of all CTV ad spend. Nielsen

• The U.S. is seeing robust growth: CTV display ad spend is forecast to reach USD $33.35 billion in 2025, with ~98.4 % of that going to video ads. EMARKETER

• In Latin America, CTV ad spend grew 27 % YoY as of Q3 2024. Pixalate

• CTV advertising currently accounts for ~5 % of digital ad spending in Latin America, with projections that it will capture a much greater share in the coming years. Broadpeak

These trends show that CTV isn’t a niche—it’s becoming a core part of media strategy.

Marketers Are Shifting Budgets

• In Nielsen’s 2025 marketing report, 56 % of marketers globally plan to increase their spending on OTT/CTV this year—more than almost any other digital channel. Nielsen

• According to a Digital Content Next article, some forecasts say over 80 % of CTV spend is already programmatic, highlighting that adoption is well underway. Digital Content Next

So not only is CTV growing, but marketers are also committing to it as part of their core media allocation.

How CTV Advertising Actually Works

Inventory, Platforms & Buying Methods

• CTV ads are served inside streaming apps or smart TV platforms through ad-enabled video (AVOD), hybrid apps (combining subscription + ad tiers), or connected devices integrated with ad delivery.

• Buying can be open programmatic auctions, private marketplaces (PMPs), or programmatic guaranteed/direct deals.

• One complexity: “programmatic” is often loosely applied. A FreeWheel report points out that while many CTV buys are called “programmatic,” some are more direct in nature. Digital Content Next

Targeting & Measurement

• Targeting occurs at the household level, using addressable segments rather than individual cookies.

• Measurement can include impression counts, completion rates, downstream conversions, attribution, and even foot traffic lift when linked with offline signals.

• A challenge: transparency of where ads appear. Gracenote’s recent report indicates many CTV impressions are delivered in environments where metadata (like which team’s game is being shown) is missing, complicating context-based targeting. Nielsen

Latin America & Mexico: The Local CTV Landscape

Adoption, Penetration & Behavior

• In Mexico, smart TV and CTV adoption is very high: Brazil and Mexico show adoption rates of 94 % and 93 % respectively, outpacing even mature U.S. markets. amagi.com

• A Broadpeak report notes that in countries like Argentina, Brazil, and Mexico, time spent watching YouTube on CTV devices is surpassing mobile usage. Broadpeak

• In Brazil, a ComScore survey (Oct 2024) found 64 % of internet users are CTV viewers—above the Latin American average of 59 %. Greenbook

Regional Ad Spend Dynamics

• South America’s programmatic market shows that CTV is the fastest-growing channel — in Q3 2024, it posted a 27 % YoY growth. Mordor Intelligence

• In Latin America, digital video (including CTV) is absorbing share from linear TV, driven by shifting consumption. IAB

Mexico, therefore, sits at an intersection: a market with high streaming adoption, growing programmatic infrastructure, and an audience ready to engage.

Deep Case Example: CaféMX Goes CTV + Cross-Channel

Here’s a scenario grounded in real dynamics:

• Objective: Local café chain wants to drive foot traffic and app orders in urban areas.

• Strategy:

  1. Run CTV video spots during evening entertainment hours in target cities.

  2. Pair with geotargeted mobile display retargeting to households that saw the CTV ad.

  3. Use promo codes for tracking digital to in-store conversions.

• Projected Outcomes:

  • ~25 – 35 % lift in web/app traffic in zones exposed to CTV

  • ~12 – 18 % incremental foot traffic to stores

  • Better CPA than generic display channels

This kind of hybrid strategy harnesses CTV’s reach and storytelling with digital’s responsiveness.

Challenges & Pitfalls (With Mitigation)

Challenge	Risk	Mitigation Strategy
Fragmented inventory	Hard to manage across platforms	Use unified DSPs and negotiate PMPs
Overstated “programmatic” metrics	Misleading attribution	Clarify definitions and use direct/guaranteed deals when needed
Ad fatigue	Diminished returns if same creative plays too often	Rotate creatives, set frequency caps
Data privacy constraints	Limits on targeting	Rely on first-party data, contextual signals, household identity solutions

Also, in Latin America, Pixalate reports an invalid traffic (IVT) rate of 14.5 % in open programmatic CTV in Q3 2024. Pixalate

Strategy Blueprint: How to Deploy CTV Effectively

1. Define your audience & context

   • Use first-party data or look-alike segments.

   • Map streaming behavior and platform usage in target regions.

2. Creative design for the living room

   • Use 16:9, full-screen, compelling visuals + concise messaging.

   • Design messages that can adapt by time, promo, or location.

3. Smart media mix planning

   • Begin with test flights in key geographies.

   • Use a mix of programmatic + premium/direct buys for safety and scale.

4. Measurement & attribution setup early

   • Connect ad exposures to downstream conversions (promo codes, store visits).

   • Use lift tests or holdouts to validate impact.

5. Iterate fast

   • Review creative, budget, bids weekly.

   • Pull insights to refine targeting and creative.

What’s Next? Predictions for 2025–2030

• FAST & AVOD expansion: Growth in free, ad-supported streaming will create more CTV inventory and ad options.

• Interactive & Shoppable CTV: Ads will permit actions directly from TV (e.g., click to order).

• Hybrid cross-screen strategies: Seamless journeys from CTV → mobile → retail.

• Better identity frameworks: Household graphs, logged-in IDs, and privacy-first models will replace reliance on cookies.

• Consolidated measurement standards: Industry alignment will yield clearer metrics, boosting advertiser confidence.

Key Takeaways

• CTV is no longer fringe—it’s growing rapidly and penetrating Latin American markets.

• Programmatic is central, but clarity around definitions and inventory quality is crucial.

• To succeed, brands must combine strong creative, hybrid strategies, measurement discipline, and iterative execution.

Connected TV advertising presents a powerful opportunity: reach mass audiences with emotional, visual storytelling—while still maintaining targeting, measurement, and optimization.

If you’re ready to build a CTV strategy that delivers both scale and performance, let’s partner.