Can you target by interests on CTV?

Overview

Connected TV (CTV) advertising has evolved from basic demographic targeting to sophisticated interest-based approaches since the mid-2010s. CTV refers to internet-connected television devices including smart TVs (Samsung, LG), streaming sticks (Roku, Amazon Fire TV), and gaming consoles. The shift from linear TV to streaming created opportunities for data-driven targeting similar to digital platforms. Early CTV advertising (2015-2018) relied primarily on contextual targeting based on content genres. However, as streaming adoption grew—with 88% of U.S. households using at least one streaming service by 2023—advertisers demanded more precise targeting capabilities. This led to the development of interest-based targeting systems that combine first-party data from device manufacturers, viewing behavior analytics, and third-party data integrations. The CTV advertising market has grown rapidly, projected to reach $40.8 billion by 2027 according to eMarketer, driven partly by advanced targeting capabilities.

How It Works

Interest targeting on CTV operates through multiple data collection and matching mechanisms. First, device manufacturers and platforms collect first-party data including viewing history, app usage, and content preferences. For example, Roku analyzes what shows users watch, which streaming services they subscribe to, and how long they engage with content. Second, automatic content recognition (ACR) technology, embedded in smart TVs from Samsung (2016 onward) and LG (2017 onward), identifies what's playing on screen to infer interests—if someone watches cooking shows frequently, they might be targeted with kitchen product ads. Third, data partnerships enable interest segmentation: platforms integrate with third-party data providers like Experian or Oracle to append demographic and interest attributes. Finally, programmatic platforms use identity graphs to connect CTV viewing with other devices using hashed emails or device IDs, allowing interest-based retargeting across screens. The process involves real-time bidding where advertisers specify interest segments, with platforms like Google's Display & Video 360 offering over 1,800 interest categories for CTV targeting.

Why It Matters

Interest-based CTV targeting matters because it enables more relevant advertising, potentially increasing engagement rates by 30-50% compared to traditional demographic targeting according to industry studies. For advertisers, it improves return on ad spend by reaching audiences more likely to convert—a car manufacturer can target viewers who watch automotive content rather than just age/gender groups. For consumers, it reduces irrelevant ads, though privacy concerns persist. The technology also bridges the gap between linear TV's broad reach and digital's precision, creating a $25.9 billion market in 2023. Major applications include direct-to-consumer brands using interest data for customer acquisition, and traditional brands optimizing cross-screen campaigns. As cookie deprecation progresses, CTV's first-party data and authenticated environments become increasingly valuable for interest-based marketing strategies.