How do franchises use CTV advertising?

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Last updated: April 8, 2026

Quick Answer: Franchises use CTV advertising by leveraging connected TV platforms to deliver targeted ads to specific audiences, often employing programmatic buying for efficiency. For example, in 2023, CTV ad spending in the U.S. reached $25.9 billion, with franchises like McDonald's using it for localized promotions. They utilize first-party data from apps and devices to target households based on demographics and viewing habits, achieving higher engagement rates than traditional TV. This approach allows franchises to measure ad performance in real-time through metrics like completion rates and conversions.

Key Facts

In 2023, CTV ad spending in the U.S. was $25.9 billion, growing over 20% annually.
Programmatic buying accounts for over 80% of CTV ad transactions, enabling automated, data-driven placements.
Franchises can target ads down to ZIP code level using geofencing and IP address data for local relevance.
CTV ads achieve average completion rates of 95%, compared to 77% for traditional linear TV ads.
Major franchises like Subway and Anytime Fitness use CTV for brand consistency across locations with customized creatives.

Overview

Connected TV (CTV) advertising refers to video ads delivered through internet-connected devices like smart TVs, streaming sticks, and gaming consoles, distinct from traditional linear TV. It emerged in the late 2010s with the rise of streaming services, such as Netflix and Hulu, and has grown rapidly due to shifting viewer habits; for instance, over 85% of U.S. households now use CTV. Franchises, which operate standardized business models across multiple locations, have adopted CTV advertising to reach fragmented audiences cost-effectively. Historically, franchises relied on national TV buys or local ads, but CTV offers a hybrid approach, blending broad reach with precise targeting. By 2022, CTV became a key channel for franchises in industries like fast food, fitness, and retail, driven by advancements in ad tech and data analytics.

How It Works

Franchises implement CTV advertising through a multi-step process. First, they partner with ad platforms or agencies to access inventory on streaming apps and services. Using programmatic technology, ads are bought automatically via real-time bidding, targeting specific audiences based on data like demographics, location, and viewing behavior. For example, a franchise might target households in a 10-mile radius of its locations using IP address geolocation. Creatives are often customized for different regions or seasons, with dynamic ad insertion allowing real-time updates. Measurement tools track metrics such as impressions, click-through rates, and foot traffic via mobile device IDs, enabling franchises to optimize campaigns. This method contrasts with traditional TV's broad, untargeted approach, offering granular control and ROI tracking.

Why It Matters

CTV advertising matters for franchises because it enhances marketing efficiency and local relevance in a digital age. It allows national brands to maintain consistency while tailoring messages to local markets, boosting customer engagement and sales. For instance, a pizza franchise can run ads for specific store promotions during peak viewing hours, driving immediate orders. The impact includes higher ad recall and conversion rates compared to linear TV, with studies showing CTV can increase brand lift by up to 30%. As cord-cutting accelerates, CTV helps franchises stay competitive by reaching audiences where they consume content, supporting growth and franchisee success in a crowded marketplace.