How do you calculate ROAS on CTV?

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Last updated: April 8, 2026

Quick Answer: To calculate ROAS on CTV, divide the revenue generated from CTV campaigns by the total ad spend on those campaigns, expressed as a ratio or percentage. For example, if a CTV campaign generates $50,000 in revenue with a $10,000 spend, the ROAS is 5:1 or 500%. Key metrics include view-through rates (VTRs) averaging 85-95% on CTV, higher than mobile or desktop, and completion rates often exceeding 90%. Attribution typically uses multi-touch models, with CTV contributing to 15-20% of digital video ad spend growth annually since 2020.

Key Facts

CTV ROAS formula: Revenue ÷ Ad Spend = ROAS ratio/percentage
CTV view-through rates average 85-95%, higher than other digital channels
CTV ad completion rates often exceed 90% due to less ad-skipping
CTV contributes to 15-20% annual growth in digital video ad spend since 2020
Multi-touch attribution models are common for CTV ROAS measurement

Overview

Return on Ad Spend (ROAS) on Connected TV (CTV) measures advertising efficiency by comparing revenue generated to ad costs on internet-connected television platforms like Roku, Amazon Fire TV, and smart TVs. CTV advertising emerged in the late 2010s, growing from $2 billion in 2018 to over $20 billion in 2023, driven by cord-cutting and streaming adoption. Unlike traditional TV, CTV offers targeted, data-driven ads, with platforms like The Trade Desk and Google's Display & Video 360 enabling programmatic buying since 2019. CTV now accounts for over 30% of total TV ad spend in the U.S., with major brands like Procter & Gamble and Coca-Cola allocating 20-30% of video budgets to CTV by 2022. The shift reflects changing viewer habits, with CTV households projected to reach 110 million in the U.S. by 2024, up from 80 million in 2020.

How It Works

Calculating ROAS on CTV involves tracking ad spend and attributing revenue through specific steps. First, define the campaign period and total CTV ad spend, including costs for creative production, platform fees, and data targeting. Second, measure revenue using attribution tools like Nielsen's Digital Ad Ratings or platform-specific analytics from Roku or Hulu, which track conversions from CTV views. Third, apply the ROAS formula: Revenue ÷ Ad Spend. For instance, a $10,000 CTV campaign generating $50,000 in sales yields a 5:1 ROAS. Attribution methods include last-touch (crediting the final ad view) or multi-touch models, with CTV often using probabilistic matching due to cookie limitations. Advanced techniques involve incrementality testing to isolate CTV's impact, comparing exposed vs. control groups. Tools like Moat or IAS verify viewability, with CTV achieving near-100% viewability rates, enhancing ROAS accuracy.

Why It Matters

ROAS on CTV matters because it quantifies advertising ROI in a high-growth channel, helping marketers optimize budgets and justify CTV investments. With CTV ad spend expected to reach $30 billion by 2025, accurate ROAS calculation ensures efficient allocation, as CTV often delivers higher engagement than linear TV, with click-through rates up to 0.5% compared to 0.1% for traditional ads. It enables performance tracking in streaming ecosystems, where personalized ads can boost ROAS by 20-30% through better targeting. For businesses, strong CTV ROAS (e.g., above 4:1) indicates effective audience reach, supporting strategic decisions like shifting from broadcast to CTV. In real-world applications, companies like Disney+ use ROAS to measure campaign success, driving subscription growth and competitive advantage in the digital landscape.