Can you target by purchase behavior on CTV?

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Last updated: April 8, 2026

Quick Answer: Yes, targeting by purchase behavior on Connected TV (CTV) is possible through data integration and programmatic advertising platforms. For example, in 2023, CTV ad spending in the U.S. reached $25.9 billion, with behavioral targeting capabilities expanding through partnerships between streaming services and data providers like Nielsen and Comscore. Platforms such as The Trade Desk and Google's Display & Video 360 enable advertisers to use first-party and third-party purchase data to target CTV audiences, though privacy regulations like GDPR (2018) and CCPA (2020) impose restrictions on data usage.

Key Facts

CTV ad spending in the U.S. reached $25.9 billion in 2023
GDPR was implemented in 2018, regulating data privacy in the EU
CCPA took effect in 2020, impacting data practices in California
Nielsen and Comscore provide audience measurement data for CTV targeting
The Trade Desk and Google's Display & Video 360 are key programmatic platforms for CTV advertising

Overview

Connected TV (CTV) refers to television sets or devices that stream video content over the internet, such as smart TVs, streaming sticks (e.g., Roku, Amazon Fire TV), and gaming consoles. The rise of CTV began in the late 2000s with the advent of streaming services like Netflix (founded 1997, launched streaming in 2007) and Hulu (launched 2007), accelerating in the 2010s as broadband penetration increased. By 2023, over 80% of U.S. households had at least one CTV device, according to eMarketer. This shift from traditional linear TV to on-demand streaming has transformed advertising, enabling more precise targeting based on user data. Historically, TV advertising relied on broad demographic targeting (e.g., age, gender), but CTV allows for behavioral and purchase-based targeting by leveraging digital data ecosystems, similar to online and mobile advertising.

How It Works

Targeting by purchase behavior on CTV involves integrating data from various sources to identify and reach audiences based on their buying habits. First, advertisers collect purchase data from first-party sources (e.g., customer transaction records) or third-party providers (e.g., data brokers like Acxiom). This data is anonymized and segmented into audience profiles, such as "frequent online shoppers" or "luxury car buyers." Next, through programmatic advertising platforms like The Trade Desk or Google's Display & Video 360, these profiles are matched with CTV users using identifiers such as IP addresses, device IDs, or hashed emails. For instance, if a user has made purchases on an e-commerce site, that data can be used to serve relevant CTV ads on streaming apps like Hulu or Disney+. The process relies on real-time bidding (RTB) systems, where ads are auctioned and delivered in milliseconds during content streaming. Additionally, measurement tools from companies like Nielsen track ad performance and attribution, linking CTV views to subsequent purchases.

Why It Matters

Targeting by purchase behavior on CTV matters because it enhances advertising efficiency and ROI for brands. By reaching audiences with proven buying intent, advertisers can reduce wasted ad spend and increase conversion rates. For example, a study by Innovid in 2022 found that CTV campaigns with behavioral targeting saw a 30% higher engagement rate compared to non-targeted ads. This capability is crucial in a competitive market where CTV ad spending is projected to grow to $40 billion globally by 2025. It also benefits consumers by delivering more relevant ads, though it raises privacy concerns, leading to stricter regulations like GDPR and CCPA. Overall, purchase behavior targeting on CTV bridges the gap between traditional TV's reach and digital advertising's precision, driving innovation in the media landscape.