CTV & OTT Advertising Guide: 5 Big Challenges Solved

Get started with connected TV advertising by addressing five of the biggest challenges for launching and measuring campaigns.

Updated on November 17, 2025

A decade ago, a cable television subscription was your ticket to news, entertainment, sports, and the shows everyone was talking about. Now, cable is just one of many ways that consumers can access video content thanks to the rise of connected TV.

Connected TV, or CTV, refers to the streaming of premium video content through smart TVs, internet-connected devices, tablets, laptops, gaming consoles, and more without using a traditional cable subscription. This is also called over-the-top or OTT when viewers go “over” a cable subscription and use apps to access content via the internet.

This year, 30% of the world’s population will use OTT video according to the Statista Market Forecast. In countries like Australia, Canada, Germany, Italy, the UK, and the US, user penetration is much higher at more than 70%.

The rise of connected TV, accelerated by the need for affordable and high-quality entertainment at home, has created a wide-open opportunity for marketers.

This guide will help marketers begin and expand their connected TV advertising by addressing five of the biggest challenges for launching and measuring campaigns. Criteo’s video advertising solution includes OLV (Online Video Advertising) only.

What is CTV vs. OTT vs. Addressable vs. Linear TV Advertising?

Here, learn all the acronyms and common lingo before you get started.

Streaming Terms

• Linear TV: Traditional cable or satellite TV with set viewing times.
• Advanced TV: All TV content streamed via the internet, whether live or on demand.
• Connected TV: Any device used to stream content from video providers via the internet.
• Over the Top (OTT): Any content streamed from a video provider’s app on a CTV or other device connected to the internet.
• Devices: The physical devices used to access the internet and video content on CTV and OTT.
• Smart TV: A TV with a built-in internet connection that gives access to streaming services.
• Internet-Connected Device: A device that plugs into a non-smart TV to connect it to the internet and gives access to streaming services. Examples include Apple TV, Chromecast, and Roku.
• Connected Gaming Console: A gaming system that connects a TV to the internet and gives access to streaming services. Examples include Xbox and PlayStation.
• Connected Set-Top Box: A cable box that also connects a TV to the internet and gives access to streaming services.
• Services: The apps from streaming companies (Netflix) or networks (Disney+) used for accessing their content via the internet.
• Authenticated Apps: Streaming apps owned and operated by a cable or TV network to make streaming content available.
• Advertising-Based Video on Demand (AVOD): A video subscription service that is free to consumers but includes advertising. Examples include Crackle, Tubi, and Pluto.
• Multichannel Video Programming Distributor (MVPD): An aggregator service owned and operated by a streaming company that offers live and on-demand content from different networks. May include original content. Examples include Hulu and Sling TV.
• Subscription Video on Demand (SVOD): A subscription service owned and operated by a streaming company, such as Netflix, to offer on-demand video content.

Advertising Terms

• Online Video (OLV) Advertising: A blanket term for all online video advertising, including in-stream pre-roll and mid-roll, outstream, and display.
• In-stream: Video ads displayed before, in the middle, or at the end of streaming content that are often non-skippable.
• Outstream: Video ads displayed outside of streaming video players.
• Pre-roll: In-stream ads shown before video content.
• Mid-roll: In-stream ads shown in the middle of video content.
• Addressable TV Advertising: A term for delivering different ads to different households watching the same video content.
• Connected TV Advertising: Video advertising delivered through any content streamed from a video provider via a device connected to the internet.
• OTT Advertising: Video advertising delivered through any content streamed from a video provider’s app on a TV via a device connected to the internet.

KPI Terms

• Reach: The share of your audience exposed to at least one ad. Expressed as a percentage.
• Completed View Rate: The share of impressions that are viewed to completion. Calculated as total impressions divided by total completed views.
• Cost per Completed Video: The price you pay each time a video ad is viewed to completion. Calculated as total cost divided by total completed views.
• Viewability: The share of ad impressions that are actually seen by consumers.
• CPM: The price you pay per one thousand ad impressions. Calculated as total cost divided by total impressions times 1,000. Using CPM as a pricing model extends the scale and reach of video campaigns.

Solving 5 Challenges of CTV & OTT Advertising

Challenge #1: Connected TV isn’t as cost effective as other display advertising channels.

When digital marketers compare CTV to other advertising channels, they might calculate the high cost of connected TV ad creation and premium CTV/OTT ad inventory and think that this type of advertising isn’t for them.

Solution: Take a customer-centric approach to CTV advertising.

For any advertising campaign to be effective, your ads must reach audiences where they’re already consuming content. And as consumers stream more video content than ever, CTV advertising is not optional.

According to Limelight’s State of Online Video 2020 report, time spent streaming TV shows increased 48% globally year over year in 2020 to an average of 4.6 hours per week. In addition, time spent streaming movies increased 22% year over year to 4.5 hours per week.

Challenge #2: Connected TV inventory is too fragmented.

Solution: Find one advertising partner with a large footprint.

Look for a connected TV advertising partner that has direct relationships with streaming services, major networks, and access to major supply-side partners (SSPs).

Challenge #3: Measurement is nascent and inconsistent with other channels.

Solution: Get clear viewability metrics through your CTV advertising solution.

Before you begin to build a CTV campaign, know up front what metrics you will have access to through the campaign management platform.

Challenge #4: Audience targeting is broader than expected on connected TV.

Solution: Build audiences with first-party data.

Challenge #5: Connected TV does not have a clear impact on sales and revenue.

Solution: Build a full-funnel advertising strategy with a single media platform.

Connected TV advertising is one of the solutions that marketers must test this year to be ready for the future of advertising. Get prepared by downloading our latest Shopper Story 2022 report and access more consumer trends and advertising strategies.