Connected TV (CTV) is no longer a secondary screen. Across Australia and globally, streaming-capable televisions have become the primary device through which audiences consume video content, and advertisers are following fast. The shift from linear broadcast to internet-connected television is rewriting the rules of audience targeting, ad spend, and creative production in ways that affect every brand that relies on video to reach customers.
What connected TV actually is
Connected TV refers to any television set that connects to the internet, whether through a built-in smart TV platform, a streaming stick, a gaming console, or a set-top box. Viewers use these devices to access streaming services, catch-up TV apps, and video-on-demand libraries. Unlike traditional broadcast television, where a single signal reaches every set tuned to a channel, CTV delivers content over an IP network, which means every viewer session can be individually tracked and targeted.
This distinction matters enormously for advertisers. Broadcast TV offered reach but almost no precision. CTV offers both: the large, lean-back viewing experience of a traditional television set combined with the data-driven targeting capabilities of digital advertising. That combination is why ad spend on connected TV platforms has accelerated so sharply across the industry.
How Australian viewing habits have shifted
Australia has one of the highest rates of smart TV penetration in the Asia-Pacific region. Platforms like BINGE, Foxtel Now, Stan, Paramount+, Disney+, Amazon Prime Video, and the advertising-supported tiers of services like Netflix and 9Now have collectively pulled enormous viewing hours away from traditional free-to-air and pay TV. The addition of ad-supported streaming tiers, which most major platforms now offer at a lower subscription price, has opened an entirely new CTV advertising inventory that simply did not exist three years ago.
For brands, this creates a significant opportunity. Audiences who previously sat through commercial breaks on broadcast television are back in an ad-supported environment, but this time their viewing behaviour is far more measurable. Advertisers can now reach households based on demographics, geography, viewing preferences, and even device type, rather than buying a broad time slot and hoping the right eyeballs are tuned in.
Why CTV advertising differs from broadcast and digital
CTV sits in a unique position between broadcast television and digital display advertising. It carries the credibility and visual impact of the big screen while offering the measurability of online campaigns. A few practical differences are worth understanding for any brand building a video strategy.
- Non-skippable formats: Many CTV ad placements are non-skippable, which means completion rates are significantly higher than on platforms like YouTube where viewers can skip after a few seconds. This places a premium on well-crafted creative that holds attention from the first frame.
- Household-level targeting: Rather than targeting individual users via cookies, CTV platforms typically target at the household level using IP address data, device IDs, and first-party subscriber data. This is increasingly important as third-party cookies are phased out across the web.
- Attribution challenges: Measuring the path from a CTV ad to a purchase remains more complex than direct-response digital advertising. Brands need to think about brand lift, search uplift, and multi-touch attribution rather than simple click-through rates.
- Premium inventory costs: CTV CPMs (cost per thousand impressions) are generally higher than standard digital display, reflecting the premium viewing environment and higher engagement levels. The cost is justified when creative quality matches the format.
The creative implications for video production
One consequence of CTV's rise that is easy to overlook is the renewed demand for high-quality television-style creative. When ads were confined to social feeds and desktop browsers, brands could get away with quick, lo-fi productions. Connected TV is a different environment entirely. Viewers are watching on large screens, in good lighting, with the volume up. Production values matter more, not less, in this context.
This is directly relevant to how businesses brief their video partners. CTV spots need to work as standalone storytelling pieces, not just product announcements. The format rewards emotional narrative, strong visual composition, and sound design that complements the picture. Understanding emotional storytelling in advertising becomes practically essential for brands producing CTV-specific creative, because the format punishes ads that feel like interruptions and rewards those that feel like content worth watching.
Brands also need to think about length. While 15-second and 30-second spots dominate CTV inventory, longer formats are gaining traction on certain platforms, particularly those aimed at premium or niche audiences. The key is matching length to message: a brand awareness play might work beautifully at 30 seconds, while a product explanation or emotional brand story might need 60 seconds to breathe properly.
Programmatic buying and the data layer
Most CTV advertising is now bought programmatically, through automated auction systems that match advertiser demand with available publisher inventory in real time. This brings the efficiency of digital media buying to the television screen, and it has accelerated adoption among brands that previously found broadcast TV inaccessible due to cost or minimum spend requirements.
Programmatic CTV allows smaller brands to appear on premium streaming platforms without committing to the large upfront buys that broadcast schedules traditionally required. A regional business in Melbourne can now run a well-targeted CTV campaign to households in specific postcodes, during relevant content categories, at a budget that would have been laughably small for a traditional television buy.
The data layer also enables smarter retargeting. A viewer who sees a CTV ad can later be served a follow-up message on their mobile or desktop device, creating a connected campaign experience across screens. This kind of sequenced storytelling, where the CTV ad builds awareness and subsequent digital touchpoints drive conversion, is becoming a standard playbook for sophisticated advertisers. It ties directly into broader shifts in how AI video tools are changing content creation, where data-informed personalisation is beginning to influence not just where ads are placed but how they are produced.
What brands should do now
For businesses that have invested primarily in social video or search advertising, CTV represents a meaningful expansion of the channel mix. A few practical steps worth considering:
- Audit your existing video assets. CTV requires horizontal, full-screen creative. Repurposing vertical social video won't cut it at this scale.
- Think about your audience's viewing context. CTV viewers are typically more relaxed and attentive than mobile users scrolling a feed. Your creative can afford to slow down and tell a fuller story.
- Work with a production partner who understands broadcast-quality production standards, not just social-native content. The investment in higher production values will be reflected in completion rates and brand recall.
- Set realistic measurement expectations. CTV is a brand-building channel at heart. Its impact shows up in search volume, direct traffic, and purchase intent over time, not just in last-click conversions.
Connected TV is not a trend to watch from a distance. For any brand serious about reaching Australian audiences where they are actually spending their screen time, it is a channel that demands attention, proper creative investment, and a willingness to think in terms of story rather than interruption. The brands that treat CTV as a real television environment, and produce accordingly, will have a clear advantage over those that simply repurpose digital leftovers onto the big screen.