What Every Agency Owner Should Know About CTV Advertising

Connected TV advertising represents one of the most significant opportunities in today's digital landscape. As streaming viewership continues to surge and traditional linear TV loses ground, agencies must understand how to navigate this rapidly evolving channel. For those seeking to expand their service offerings through white label digital marketing partnerships, CTV presents both immense potential and unique challenges that demand strategic consideration.

Digital video ad spend rose 18% in 2024 to $64 billion and is projected to grow another 14% in 2025, reaching $72 billion, with CTV driving much of this expansion. We've witnessed firsthand how agencies that position themselves early in this space gain competitive advantages that compound over time.

The CTV Growth Story That Changes Everything

CTV rebounded with 16% YoY growth in 2024, making it clear that this channel has moved beyond experimental budgets into core media strategies. Connected TV has become the fastest-growing major ad channel in the U.S., projected to expand by 22.4% and reach a total of $30.10 billion in ad spend by 2024.

What makes this growth particularly compelling for agencies is the audience shift driving it. Recent data indicates that there were 56.8 million millennial Connected TV users in the U.S., with estimates predicting this will grow to 62.6 million by 2025. This demographic represents prime advertising targets with significant purchasing power.

We see agencies successfully leveraging this trend by building CTV capabilities that allow them to capture budget migrations from traditional channels. The key insight: By 2026, CTV will account for 20.0% of time spent with media per day by adults in the US, compared with 11.5% in 2020, yet it will still be undervalued relative to attention share.

Why Traditional TV Budgets Are Moving to CTV

Linear TV ad spend will decline from $60.56 billion in 2024 to $56.83 billion in 2027, creating a massive reallocation opportunity. Sixty-five percent of marketers classify CTV as a performance channel, and 52% use it to drive key metrics like web visits and revenue.

The shift isn't just about reach—it's about accountability. CTV can offer better measurement data than linear TV, businesses looking to make the most out of every ad dollar are drawn to those platforms. This measurement advantage becomes a crucial selling point for agencies positioning CTV services.

Understanding CTV's Unique Targeting Advantages

CTV's targeting capabilities represent a fundamental departure from traditional TV buying. 84% of advertisers believe CTV delivers better targeting capabilities compared to traditional linear TV, enabling precision that was previously impossible on television screens.

We help agencies understand and communicate these targeting options effectively:

Demographic and Geographic Precision: Target specific age groups, income levels, and geographic areas down to ZIP codes

Behavioral Targeting: Reach audiences based on viewing history, app usage, and online behaviors

First-Party Data Integration: Leverage client customer data for highly relevant audience creation

Contextual Placement: Align ads with relevant content genres and viewing contexts

By 2024, 59% of US advertisers will integrate CTV into their omnichannel campaigns, making cross-channel expertise essential for agencies looking to provide comprehensive digital strategies.

The Programmatic Advantage

With programmatic TV advertising offering highly targeted audience impressions that come and go in a matter of milliseconds, the race is on to use automation and artificial intelligence to optimize CTV campaigns. Demand Side Platforms are at the forefront of this AI race, integrating and analyzing vast amounts of audience data in real time.

This programmatic infrastructure allows agencies to execute sophisticated campaigns that would be impossible through traditional TV buying processes. The ability to adjust targeting, creative, and budgets in real-time creates opportunities for continuous optimization that drives better client outcomes.

The Measurement Challenge Every Agency Must Address

While CTV offers superior targeting, measurement remains complex. Measurement and attribution is U.S. CTV advertisers' top challenge, and 75% agreed they felt "confused" by all the different methods for attributing their CTV campaigns.

We've observed three primary measurement approaches that agencies need to understand:

IP-Based Attribution

The platform identifies and stores the household's IP address in an exposure file. A device graph maps out any other devices that are connected to the same IP address within that household. By comparing the data stored in exposure files and outcome files, it's possible to identify matching IP addresses.

However, IP tracking is an extremely unreliable methodology of measurement, mainly as all users on the same network share the same IP address. Industry experts estimate that this figure is lower than 70%.

Brand Lift Studies

Linear TV advertisers typically conduct brand lift studies and consumer surveys in order to understand how each ad campaign resonates with their audience. The one-to-one nature of measurement and attribution on CTV solves that problem by allowing advertisers to attribute and analyze brand lift with a high degree of precision.

Incrementality Testing

One of the oldest methods of incrementality measurement relied on turning advertising on in some sections, and off in others, comparing the performance lift in the regions where advertising was turned on to the "baseline" performance in the regions where it was off.

Navigating Platform Fragmentation

Fragmentation and a lack of standardisation make it difficult for advertisers to deliver data-driven campaigns that maximise impact. Each major platform—Roku, Amazon Fire TV, Samsung, Apple TV—has its own measurement methodologies and reporting standards.

As of Q2 2025, Roku maintains a leading position with 37% market share in North America, followed by Amazon at 17%. Understanding these platform dynamics helps agencies develop more effective media strategies.

We work with agencies to build unified reporting approaches that aggregate performance across platforms, providing clients with coherent campaign insights despite underlying fragmentation.

The Inventory Quality Challenge

There's a ton of channels and ad opportunities, but advertisers are still lagging behind, leaving some of the ad space unfilled. In fact, in 2024, every month but October saw lower Ad Fill Rates than the year before.

This supply-demand imbalance creates both opportunities and risks. Quality inventory from premium publishers commands higher prices, while lower-tier inventory may deliver questionable value. Agencies need partners who can navigate these quality distinctions effectively.

Building CTV Expertise Through Strategic Partnerships

For agencies without existing CTV capabilities, white label digital marketing partnerships offer the fastest path to market competence. We've seen successful agencies leverage these relationships to offer comprehensive CTV services while building internal knowledge.

Key partnership considerations include:

Technical Infrastructure: Access to demand-side platforms and inventory relationships

Measurement Capabilities: Unified reporting across platforms and attribution methodologies

Creative Production: Video ad creation and optimization capabilities

Strategic Planning: Campaign strategy and audience development expertise

The Economics of CTV Partnership

CTV advertising can be as low as 4 cents per spot, making it accessible for smaller budgets while still delivering television-quality creative experiences. This cost efficiency allows agencies to test CTV with existing clients before making larger investments.

We help agencies understand pricing models that range from CPM-based programmatic buying to fixed-cost premium placements, enabling flexible budget allocation based on client objectives.

Emerging Trends Shaping CTV's Future

Shoppable Ad Innovation

CTV advertising will increasingly feature shoppable ads, allowing viewers to make purchases directly from their connected devices. In 2024, it is estimated that US shoppable video sales will reach $16.88 billion, representing 15.2% of total US retail e-commerce sales.

Roku recently established a pilot partnership with Walmart to integrate shoppable ads into their platform. Viewers can click on shoppable ads from the retailer and purchase directly from the Roku platform, as simple as using a TV remote.

Cross-Channel Integration

An appeal of CTV advertising is that it can fit in seamlessly with an existing omnichannel strategy. A majority of marketers are running CTV ads alongside existing channels, especially social media, display advertising, and mobile video.

This integration capability makes CTV particularly valuable for agencies managing comprehensive digital strategies, as it extends reach without requiring separate campaign management processes.

Advanced Audience Segmentation

In 2024, brands can expect more sophisticated audience segmentation to deliver highly personalized and relevant ads. Machine learning algorithms are enabling more precise audience identification and dynamic creative optimization.

Practical Implementation Strategies

Starting with Existing Clients

We recommend agencies begin CTV implementation with clients who already demonstrate strong digital performance. 64 percent of U.S. Connected TV users preferred ad-supported content if it allowed them to pay less. Furthermore, 57 percent of participants favored CTV ads over those on traditional linear TV.

This audience acceptance creates favorable conditions for campaign success, building confidence in both agency teams and clients.

Building Internal Capabilities

While partnerships provide immediate access to CTV capabilities, agencies should simultaneously build internal knowledge. Key areas include:

Platform Relationships: Understanding major CTV platform requirements and opportunities

Creative Best Practices: Developing television-quality video content optimized for streaming environments

Data Integration: Connecting CTV performance with broader marketing analytics

Client Education: Communicating CTV value propositions and performance metrics effectively

Addressing Common Implementation Challenges

Attribution Complexity

Suppose users are served ads from the same campaign across different channels. In that case, it can be nearly impossible to confidently measure multi-touch attribution – identifying what specific ads and what specific actions contribute to a given consumer behavior like converting.

We help agencies develop attribution frameworks that account for CTV's role in broader customer journeys, using incrementality testing and brand lift studies to demonstrate value beyond last-click metrics.

Creative Production Requirements

Television-quality creative production represents a significant investment for many agencies. With the right reporting and analytics, it's often possible to compare performance across different audience segments, tactics, creative elements, and more. This allows agencies and brands running CTV campaigns to continuously tweak in-flight campaigns to drive better results.

We work with agencies to develop creative testing frameworks that optimize production investments while maintaining quality standards.

The Strategic Imperative for Agency Owners

As traditional TV advertising spend declines, CTV is only picking up. With the rise of ad-supported programming with AVOD and FAST, increased Gen Z viewership, and enhanced measurement capabilities, advertisers who haven't yet used CTV advertising in their campaign mix would be wise to start now.

The window for early-mover advantage in CTV is narrowing. Agencies that establish capabilities now position themselves to capture budget migrations from traditional channels while building expertise that becomes increasingly valuable as the market matures.

For agencies considering white label digital marketing partnerships, CTV represents an ideal testing ground for collaborative relationships. The technical complexity and rapid evolution of the channel make partnerships particularly valuable, allowing agencies to offer sophisticated services while building internal knowledge.

Looking Forward: CTV's Role in Agency Growth

Connected TV advertising isn't just another channel—it represents a fundamental shift in how television advertising works. Connected TV attribution represents one of the most pivotal frontiers for data-driven advertisers.

We see agencies that embrace this shift early gaining sustainable competitive advantages. The combination of television's creative impact with digital's targeting precision and measurement capabilities creates unique value propositions that clients find compelling.

The key to success lies in understanding that CTV requires both traditional television expertise and digital advertising sophistication. Agencies that can bridge these worlds—either internally or through strategic partnerships—will be best positioned to capitalize on this growing opportunity.

Ready to explore how CTV can accelerate your agency's growth? Connect with us to discuss how our white label CTV solutions can extend your team's capabilities and drive measurable results for your clients.

Frequently Asked Questions

How much budget should agencies recommend for initial CTV campaigns?

We typically recommend starting with 10-15% of existing digital video budgets for initial CTV testing. With costs as low as 4 cents per spot, agencies can execute meaningful tests without significant budget commitments. This approach allows for performance validation before larger investments while building internal expertise and client confidence.

What are the most important metrics for demonstrating CTV success to clients?

86% prioritizing reach and frequency and 85% emphasizing brand lift as important reporting metrics. However, metrics like sales lift (84%) and website visit attribution (77%) illustrate a growing focus on connecting campaign performance to tangible business outcomes. We recommend focusing on incrementality metrics that show CTV's additive value to existing marketing efforts, as these resonate most strongly with clients seeking accountability.

How can agencies overcome the measurement challenges that make CTV seem complicated?

A core challenge in CTV measurement has been education and understanding of the platform. CTV is ultimately TV advertising, but as it's digitally delivered, advertisers often expect the same measurement possibilities as digital advertising, which is just not the case. To truly progress, education is crucial so that advertisers understand the real possibilities on CTV and also the KPIs that are most meaningful. We help agencies by providing clear frameworks for explaining CTV measurement to clients, focusing on incrementality and brand lift rather than traditional digital metrics like click-through rates.