Can you target by income on CTV?

Overview

Connected TV (CTV) advertising has transformed digital marketing by bringing programmatic capabilities to television viewing. CTV refers to internet-connected television devices and platforms like smart TVs (Samsung, LG), streaming devices (Roku, Amazon Fire TV), and gaming consoles (PlayStation, Xbox). The CTV advertising market has experienced explosive growth, with U.S. spending increasing from $8.1 billion in 2020 to $25.9 billion in 2023 according to eMarketer. This growth coincides with the rapid adoption of streaming services and cord-cutting trends, as traditional linear TV viewership declined. Major CTV platforms include Roku (with approximately 80 million active accounts in Q1 2024), Amazon Fire TV, Samsung TV Plus, and Vizio's WatchFree+. The ability to target specific demographics like income levels represents a significant advancement over traditional TV advertising's broad demographic targeting.

How It Works

Income targeting on CTV operates through sophisticated data integration and programmatic advertising systems. CTV platforms partner with third-party data providers like Experian, Acxiom, and Nielsen to access aggregated household income data. This data is collected from various sources including public records, credit information, purchase history, and survey responses, then anonymized and aggregated to protect privacy. When advertisers set up campaigns on platforms like Roku's OneView or Samsung Ads, they can select specific income brackets as targeting parameters. The platform's advertising technology then matches these criteria against their user database using device IDs and IP addresses to identify eligible households. For example, an advertiser might target households with annual incomes over $100,000 for luxury car ads. The actual income data isn't shared with advertisers; instead, the platform uses it internally to serve ads to the appropriate audience segments through real-time bidding systems.

Why It Matters

Income targeting on CTV matters because it enables more efficient and effective advertising compared to traditional television. Advertisers can reach specific high-value audiences with greater precision, reducing wasted ad spend on viewers outside their target demographic. This capability is particularly valuable for luxury brands, financial services, and premium products that need to reach affluent consumers. For example, a wealth management firm can target households earning $150,000+ annually with retirement planning ads, while a budget retailer might focus on middle-income households. The impact extends beyond advertising efficiency to improved viewer experience, as consumers see more relevant ads. This targeting capability has contributed to CTV's rapid growth as an advertising channel, with projections suggesting it will surpass traditional TV ad spending in the U.S. by 2025 according to some industry forecasts.