CTV: The Performance Channel Hiding in Plain Sight

Connected TV has transformed from a brand awareness tool into a measurable performance channel. Discover how CTV drives ROI, lowers acquisition costs, and reshapes the customer journey.

Introduction: The Missed Opportunity Becomes a Measured Revolution

For decades, television advertising was the playground of giants, broad, blunt, and built on brand recall rather than measurable outcomes. It was faith-based marketing, where impact was inferred rather than proven.

That era is over. Connected TV (CTV), already in 88% of U.S. households by 2025, has transformed TV from a black box into a precision marketing engine. Streaming officially surpassed cable in 2023, with Nielsen clocking 38.7% of viewing time on streaming vs. 29.6% on cable. Advertisers followed, pouring $21B into CTV in 2023, with projections hitting $30B by 2025.

This isn’t just a shift in eyeballs, it’s a revolution in accountability. CTV now offers closed-loop measurement, cross-device attribution, and ROI tracking that rivals search and social, while retaining the cultural scale and emotional impact of the big screen. What was once guesswork is now a data-driven science.

The opportunity isn’t “emerging.” It’s here. And the brands that move early will win cost advantages and lock in learnings before the market floods.

What Exactly Is Connected TV?

CTV refers to television content delivered over the internet, whether through smart TVs, Roku, Apple TV, Fire Stick, gaming consoles, or set-top boxes. Unlike linear TV, which airs on fixed schedules, CTV merges the immersive impact of television with the precision of digital:

• Immersion: Lean-back, big-screen storytelling.

• Attribution: Closed-loop measurement, showing whether an ad led to a site visit, app install, or purchase.

• Integration: Connection with CRM systems, retargeting ecosystems, and dynamic creative optimization.

In short, CTV isn’t just streaming, it’s the fusion of screen, signal, and strategy.

Key stats underscore the shift:

• 88% of U.S. households projected to have at least one CTV device by 2025.

• Streaming overtook cable in 2023 (38.7% vs. 29.6%).

• CTV ad spend grew to $21B in 2023 and is projected to hit $30B by 2025.
  

Challenges, Myths, and the New Reality

Myth 1: CTV is only for brand awareness.
Not anymore. Interactive ads, QR codes, clickable overlays, shoppable experiences, turn TV into a direct-response channel. Innovid reports 38% of viewers take action after an interactive CTV ad. Dollar Shave Club reported a 50% lower CPA on CTV vs. YouTube. Casper saw a 12% conversion lift from CTV campaigns.

Myth 2: CTV is too fragmented to manage.
Yes, there are apps, platforms, devices, and FAST channels, but programmatic demand-side platforms (DSPs) like MNTN and StackAdapt unify inventory, manage frequency, and deliver consolidated reporting. Fragmentation is absorbed by technology, not the advertiser.

Myth 3: CTV is too expensive.
The days of million-dollar entry points are over. Campaigns now start at $10K–$25K per month. Even DTC brands with <$25K budgets have seen 2x ROI vs. social video. Plus, CTV CPCVs are often 25–30% cheaper than linear TV.

Case Studies That Prove the Point

• Origin Retail Campaign: Delivered an 11.8% incremental sales lift and $1.60 ROAS using CTV creative personalization and shopper data targeting.
  Source → Origin Media

• Leading Retailer (Viant): Generated a 202% lift in conversions and a 32% lower CPLPV by shifting linear TV spend into performance-focused CTV.
  Source → Viant Case Study

Whether it’s lowering acquisition costs or expanding reach, these results aren’t hype, they’re a preview. CTV is earning its place in the performance mix. The smarter question isn’t if it works, it’s how soon you’ll start using it that way.

CTV’s Dual Role: Viewer Experience + Customer Journey

CTV is more than ads, it’s part of the consumer journey.

• For viewers: Ads feel native, seamless, and increasingly interactive (QR scans, shoppable CTAs).

• For marketers: Those interactions become measurable funnel steps, moving audiences from mid-funnel awareness to bottom-funnel action.

Where they overlap: When a viewer engages (scan, click, voice prompt), they cross into active intent.
Where they diverge: Not all viewers are buyers. Strategy requires both broad creative appeal and surgical precision in targeting.

CTV’s unique power lies in elevating entertainment while accelerating conversion.

Why This Matters: Measurement Transparency

The most disruptive shift is transparency. CTV impressions can now be tied to site visits, app installs, or purchases. For marketers long used to modeling outcomes from TV, this level of accountability is game-changing.

It changes:

• Campaign optimization (real-time A/B testing against YouTube and social).

• Budget allocation (moving dollars where ROI is proven).

• Marketing credibility (CFOs and CMOs align when spend links directly to revenue).

Measurement has evolved from activity metrics to impact metrics. CTV is no longer experimental, it’s table stakes.

Strategic Recommendations

1. Start with retargeting. Use CRM and site-visitor data to reach warm audiences on the biggest screen.

2. Embrace interactivity. QR codes and shoppable overlays double engagement vs. static video.

3. Benchmark ROI. A/B test CTV against social and YouTube, measure CPA, not CPM.

4. Tailor creative. CTV is a lean-back medium. Prioritize clarity, strong value props, and concise storytelling.

5. Move early. Inventory and costs will tighten as adoption scales. Early movers secure an edge in both efficiency and learning.
   

Key Takeaways

• CTV has evolved from awareness-only to a measurable performance channel.

• Measurement and attribution now rival search and social.

• Interactive formats transform TV into an engagement-driven funnel.

• Costs are still favorable, but early adoption matters.

• Retargeting and cross-device strategies unlock higher conversions and lifetime value.

Conclusion: Act Before the Window Closes

CTV has crossed its tipping point. It merges TV’s cultural scale with digital’s accountability, giving marketers the rare chance to both move hearts and measure outcomes.

The question isn’t whether CTV works, it already does. The real question is whether your brand will seize the opportunity now, while pricing is favorable and learning curves provide a competitive edge, or whether you’ll play catch-up once competitors have already optimized.

The screen is on. The audience is waiting. The performance channel you’ve been looking for has been in your living room all along.

Ryan Edwards, CAMINO5 | Co-Founder

Ryan Edwards is the Co-Founder and Head of Strategy at CAMINO5, a consultancy focused on digital strategy and consumer journey design. With over 25 years of experience across brand, tech, and marketing innovation, he’s led initiatives for Fortune 500s including Oracle, NBCUniversal, Sony, Disney, and Kaiser Permanente.

Ryan’s work spans brand repositioning, AI-integrated workflows, and full-funnel strategy. He helps companies cut through complexity, regain clarity, and build for what’s next.

Connect on LinkedIn: ryanedwards2