How does CTV advertising work for automotive?

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Last updated: April 8, 2026

Quick Answer: CTV advertising for automotive works by delivering targeted video ads to viewers on connected TV devices like smart TVs and streaming boxes, using data-driven targeting to reach specific automotive audiences. Automotive brands spent over $2.5 billion on CTV advertising in 2023, representing 15% of total automotive digital video ad spending. Major automakers like Ford and Toyota have shifted significant portions of their advertising budgets to CTV platforms since 2020, with campaigns typically achieving 20-30% higher engagement rates than traditional TV ads.

Key Facts

Automotive CTV ad spending reached $2.5 billion in 2023
CTV represents 15% of automotive digital video ad spending
Major automakers began shifting budgets to CTV around 2020
CTV automotive campaigns achieve 20-30% higher engagement than traditional TV
Over 80% of U.S. households now have at least one CTV device

Overview

Connected TV (CTV) advertising represents a fundamental shift in how automotive brands reach consumers, emerging as streaming services gained mainstream adoption in the late 2010s. Unlike traditional linear television, CTV refers to internet-connected television devices including smart TVs (Samsung, LG), streaming devices (Roku, Amazon Fire TV), and gaming consoles that deliver content via apps like Netflix, Hulu, and YouTube. The automotive industry's adoption accelerated around 2020 when pandemic-driven streaming growth coincided with major automakers' digital transformation initiatives. By 2023, over 80% of U.S. households had at least one CTV device, creating an addressable market of approximately 220 million viewers. This technological shift enabled automotive marketers to move beyond broad demographic targeting to precise audience segmentation based on viewing behavior, purchase intent signals, and first-party data from dealership networks and manufacturer databases.

How It Works

CTV advertising for automotive operates through programmatic platforms that connect advertisers with available ad inventory across streaming services. The process begins with automotive brands defining target audiences using data points like vehicle ownership history, online research behavior (such as visiting automotive websites), geographic location near dealerships, and demographic profiles matching specific vehicle segments. Advertisers then bid on ad slots in real-time auctions when target viewers stream content. When a compatible viewer starts watching, the CTV platform evaluates available ads and serves relevant automotive creative, typically 15-30 second video spots. Advanced targeting capabilities include retargeting viewers who visited manufacturer websites, reaching competitive vehicle owners nearing lease expiration, and geo-targeting specific dealership trade areas. Measurement occurs through multi-touch attribution tracking view-through rates, website visits, and ultimately dealership visits or purchases, with many platforms offering verification through third-party measurement partners.

Why It Matters

CTV advertising matters for automotive because it addresses critical industry challenges including declining traditional TV viewership, the need for measurable ROI, and changing consumer media consumption habits. With average Americans now spending over 3 hours daily streaming content, CTV provides automotive brands access to engaged audiences during premium content viewing moments. The technology enables precise targeting of in-market shoppers, reducing wasted ad spend compared to traditional broadcast methods. For consumers, CTV delivers more relevant automotive messaging aligned with their interests and purchase timelines, while interactive ad formats can include features like virtual test drives or dealership locators. The shift to CTV also supports automotive's broader digital transformation, integrating with online configurators, lead generation systems, and customer relationship management platforms to create seamless purchase journeys from ad exposure to dealership visit.