What is a good ROAS for CTV advertising?

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Last updated: April 8, 2026

Quick Answer: A good ROAS (Return on Ad Spend) for CTV (Connected TV) advertising typically ranges from 3:1 to 5:1, meaning $3 to $5 in revenue for every $1 spent. According to a 2023 IAB report, the average CTV ROAS across industries is approximately 4:1, with e-commerce and direct-to-consumer brands often achieving higher ratios of 5:1 or more. Factors like precise targeting, creative quality, and measurement capabilities significantly influence these outcomes, with optimized campaigns sometimes reaching 8:1 or higher ROAS.

Key Facts

Typical good ROAS range: 3:1 to 5:1
Average CTV ROAS in 2023: 4:1 (IAB report)
E-commerce/DTC brands often achieve: 5:1+
Optimized campaigns can reach: 8:1+
Key influencing factors: targeting, creative, measurement

Overview

Connected TV (CTV) advertising refers to video ads delivered through internet-connected television devices, such as smart TVs, streaming sticks (Roku, Amazon Fire TV), gaming consoles, and set-top boxes. This advertising format has grown rapidly since the mid-2010s alongside the rise of streaming services like Netflix (founded 1997, launched streaming 2007), Hulu (launched 2007), and Disney+ (launched 2019). CTV differs from traditional linear TV advertising by offering programmatic buying, precise audience targeting, and better measurement capabilities. The global CTV advertising market was valued at approximately $21 billion in 2022 and is projected to reach over $40 billion by 2027, according to Statista. Major platforms include Roku (founded 2002), Amazon Fire TV (launched 2014), and Google/Android TV (launched 2014), with advertisers leveraging these ecosystems to reach cord-cutters and streaming audiences.

How It Works

CTV advertising operates through programmatic platforms that use real-time bidding (RTB) to purchase ad inventory across streaming apps and services. Advertisers set targeting parameters based on demographics, interests, viewing behaviors, and first-party data, often integrated with data management platforms (DMPs). When a user streams content, an ad request is sent to an ad exchange, where advertisers bid for the impression; the winning ad is then served seamlessly during breaks in the content. Measurement involves tracking metrics like impressions, completion rates, and conversions through pixels or SDKs, with ROAS calculated by dividing revenue generated from the campaign by the ad spend. Advanced attribution models, such as multi-touch attribution (MTA) or marketing mix modeling (MMM), help determine CTV's contribution to sales, accounting for factors like view-through conversions and cross-device tracking.

Why It Matters

CTV advertising matters because it combines the broad reach of traditional TV with the precision and accountability of digital marketing, addressing the shift in consumer behavior toward streaming. It enables brands to engage high-intent audiences in a lean-back, immersive environment, with studies showing CTV ads have higher completion rates (often over 90%) compared to other digital formats. For businesses, achieving a good ROAS (3:1 to 5:1 or higher) indicates efficient spending and strong ROI, driving growth in sectors like retail, automotive, and entertainment. As cord-cutting accelerates—with over 50% of U.S. households using CTV as of 2023—advertisers who optimize CTV campaigns can capture market share, enhance brand awareness, and boost sales in an increasingly fragmented media landscape.