How do small businesses get started with CTV ads?

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Last updated: April 8, 2026

Quick Answer: Small businesses can start with CTV ads by first defining their target audience and setting clear goals, then using self-service platforms like Google Ads or The Trade Desk to create and launch campaigns. They typically begin with modest budgets of $500-$2,000 per month to test effectiveness, focusing on specific demographics and interests. Many platforms offer detailed analytics to track metrics like completion rates and conversions, allowing businesses to optimize spending based on performance data.

Key Facts

CTV ad spending is projected to reach $29.6 billion by 2024, up from $8.1 billion in 2020
Over 80% of U.S. households now have at least one connected TV device
Self-service CTV platforms typically require minimum monthly budgets starting at $500
CTV ads achieve average completion rates of 95%, significantly higher than mobile or desktop video ads
Small businesses can target audiences using first-party data or platform-provided demographic and interest categories

Overview

Connected TV (CTV) advertising represents the digital evolution of television marketing, where ads are delivered through internet-connected devices like smart TVs, streaming sticks, and gaming consoles rather than traditional broadcast or cable systems. The CTV advertising market has experienced explosive growth since 2015, when platforms like Roku and Amazon Fire TV began offering advertising opportunities. By 2020, CTV ad spending reached $8.1 billion, and it's projected to grow to $29.6 billion by 2024, driven by the rapid adoption of streaming services. This shift has democratized television advertising, making it accessible to small businesses that previously couldn't afford traditional TV spots costing tens of thousands of dollars. The COVID-19 pandemic accelerated this trend, with streaming viewership increasing by 74% in 2020 alone, creating new opportunities for targeted advertising.

How It Works

Small businesses begin CTV advertising by first identifying their target audience using demographic data, viewing habits, and purchase behaviors available through advertising platforms. They then create video ads (typically 15-30 seconds) optimized for television viewing. Businesses use self-service platforms like Google Ads, The Trade Desk, or Roku's advertising platform to upload their creative assets, set targeting parameters, and establish budgets. These platforms use programmatic technology to automatically place ads in available inventory across various streaming services and apps. Campaigns can be targeted geographically, demographically, or based on specific interests and behaviors. Real-time bidding determines ad placement, with costs typically calculated on a cost-per-thousand-impressions (CPM) basis ranging from $20-$40. Businesses receive detailed analytics showing impressions, completion rates, and conversion metrics to measure effectiveness.

Why It Matters

CTV advertising matters for small businesses because it provides access to television's powerful storytelling medium at affordable prices, with the precision targeting of digital marketing. Unlike traditional TV ads that reach broad, untargeted audiences, CTV allows businesses to reach specific consumer segments most likely to convert, reducing wasted ad spend. The high completion rates (averaging 95%) ensure messages are fully delivered, while the big-screen format creates memorable brand experiences. For local businesses, geo-targeting capabilities enable reaching customers within specific service areas. As cord-cutting continues and streaming dominates viewing habits, CTV represents the future of television advertising, allowing small businesses to compete effectively against larger competitors in the evolving media landscape.