How Connected TV Is Changing the Rules of Paid Media Strategy

By Phase 3
December 18, 2025

For years, media planning was straightforward. Marketers bought airtime on TV or radio or placed print ads in magazines and newspapers. They measured success by impressions, which show the number of people who might have seen each ad.

But the rise of streaming and on-demand digital platforms has completely changed how we consume media. Viewers now have more control, more choices, and higher expectations. Marketers, in turn, have far greater power to target the right audiences with precision. Today’s digital world demands a smarter, data-driven approach to planning paid media outreach.

At Phase 3, we help clients navigate these options every day. For business leaders and marketers looking to modernize their paid media strategy, understanding the streaming ecosystem is critical to delivering fruitful campaigns.

 

From Channels to Journeys

Audiences no longer gather around the same three TV networks at 8 p.m. each night. Instead, they move fluidly across streaming platforms, social media, internet sites, and gaming on connected smart devices. That means strategic media planners can't rely on siloed channels any longer.

Because we are so attached to our connected devices, modern media planning must follow the entire customer journey -- through awareness, engagement, conversion, and loyalty. You need to know where your audience spends their time, what they value, and what they expect from your brand in that space.

For example, a viewer might see your brand video on Hulu, search for you on YouTube, then make a purchase on your website after seeing a retargeted Instagram ad. Their path requires a coordinated, cross-platform strategy powered by consistent creative and accurate data.

For our insights into leveraging new digital media channels like podcasts and streaming services for marketing campaigns, please read this post.

 

The Rise of Connected TV (CTV)

Connected TV (televisions that stream content over the internet) has reshaped modern media. Viewers access programming through built-in smart TV apps or external streaming devices like Roku, Apple TV, Amazon Fire Stick, Chromecast, and gaming consoles. These devices connect directly to Wi-Fi, allowing viewers to stream video content from hundreds of providers without traditional cable or satellite service.

CTV programming comes from two main sources: subscription-based platforms, such as Netflix, Disney+, Hulu, and Max, and ad-supported streaming services like Pluto TV, Tubi, Peacock, and Amazon Freevee. Many traditional networks, including ABC, CBS, and NBC, now offer their own streaming apps or “network hubs” to reach digital audiences.

Viewers are watching more on-demand and live content than ever. Whether they’re binging a new drama series, streaming live sports, or catching up on local news, they’re doing it all through the same connected ecosystem.

Unlike traditional TV, CTV blends the reach of broadcast with the precision of digital targeting. Advertisers can choose audiences based on deep demographics like income or occupation, personal interests, and shopping behaviors.

Real-time data powers that precision. For example, if you search for running shoes on your phone at work, you might later see an ad for athletic gear while watching The Diplomat on Netflix at home. That's not guesswork; it's relevance.

 

Opportunities (and Challenges) for Advertisers

 

Increased Targeting Power

Data-informed CTV and streaming campaigns allow you to reach highly specific audiences. For example, you can reach business owners with revenues between $1 and $5 million, parents of kids with special needs, or pickleball fans with content tailored to their interests.

 

Flexibility and Speed

Because creative updates and new placements can occur in real time, you can refresh content quickly to avoid ad fatigue and capitalize on emerging trends. With CTV, your campaigns can follow the audience instead of remaining locked into a static broadcast TV buy.

 

Smarter Metrics

CTV campaigns offer far richer analytics than traditional broadcast. Cross-platform tools now enable you to compare CTV performance against both linear TV and digital placements.

Learn more about measuring success from your paid media campaigns on our blog.

 

Cost Efficiency and ROI

CTV advertising carries a higher upfront cost, averaging $35–$65 CPM compared to $10–$15 for traditional broadcast and $20–$25 for YouTube. You'll find that the difference, however, reflects its precision and performance. CTV minimizes wasted impressions through advanced targeting. CTV also generates exceptional engagement, with up to 95% of ads watched to the end. Because advertisers often pay only for completed views in certain programmatic CTV campaigns, every dollar supports a verified connection with the audience. In short, CTV's higher CPM delivers stronger cost efficiency and ROI, making it a worthy investment.

 

Fragmentation and Complexity 

It's essential to understand the flip side of these new opportunities, which is complexity. Every streaming platform has unique ad formats, audience data, and reporting tools. Measurement variability is common. Managing multiple platforms requires experience and integration so that your brand stays authentic and consistent across all channels.

 

Streaming and the Human Factor

Despite all this disruption, consumers remain selective in their media consumption. According to Deloitte’s 2024 Digital Media Trends report:

  • The average U.S. household pays about $61 every month for four streaming services.

  • 68% maintain a bundled pay-TV or live streaming subscription for convenience.

  • Younger audiences report that ads on social platforms influence them more than repetitive, non-personalized ads on streaming services.

This tells us something important: relevance still matters more than reach.

Audiences want personalized, story-based, and creative content, regardless of whether they're watching Hulu, TikTok, or YouTube.

 

Case in Point: The LinkedIn CTV Model

LinkedIn's Connected TV network is a strong example of innovation in media planning. LinkedIn leverages its professional data to place CTV ads targeted by industry, job title, and company size. B2B advertisers can place messages directly in front of sector decision-makers via streaming services and CTVs.

For more insights on targeting B2B customers, please read this blog.

Advertisers can earn significant enhancements in reach between LinkedIn CTV reach and traditional TV buys. In one case study, Salesforce found that LinkedIn’s CTV ads produced four times as many on-target impressions as linear TV.

Pairing granular B2B targeting with the efficient and effective use of CTV targeting is a complete game changer. CTV enables precise targeting, cross-network placement, and meaningful engagement.

Read our Social Media Playbook for Growing Your Business in 2025 at this  link.

 

Looking Ahead: Data, AI, and Balance

Data will continue to drive smarter media planning. Yet, not all relevant insights come from digital tools. The most effective campaigns strike a balance between analytics and human judgment. Success also requires testing, actively listening to customers, and leveraging insights from previous campaigns.

Artificial intelligence can help you optimize creative versions, automate bidding, and predict where audiences will engage next. Still, AI can’t replace strategic thinking or original storytelling. Great campaigns will always need human understanding and brand insight.

Read more about what we’re watching in the world of marketing and AI here.

And while streaming is expanding rapidly, traditional channels still have a place in many sectors. Depending on your audience, a mix of print, out-of-home, and/or radio may complement your digital and CTV buys for broader brand impact.

Read our article titled, Multi-Channel Mastery: Enhancing Brand Visibility and Engagement for our expert insights on the power of integrated marketing campaigns.

 

Simplifying Your Options

At Phase 3, we help businesses plan and execute paid media campaigns that connect strategy, creativity, and data under one roof. By blending traditional reach with digital precision, we simplify today’s complex media ecosystems and deliver measurable results.

Ready to Optimize Your Media Strategy? 

Let’s talk about how your brand can reach today’s on-demand audience with confidence and clarity. Contact us today.