Connected TV (CTV) has evolved from an experimental channel and is creating new opportunities for advertisers to target audiences with unprecedented precision and measure results in real-time.

"It's been a really exciting time over the course of the last five to seven years," said Kim Marchan, head of agency development at StackAdapt, during a fireside chat at an EMARKETER Summit.

Marchan says 70% of households are expected to use CTV in some way by 2026, and brands are no longer asking if they should invest in CTV but rather how to tailor their strategies to take full advantage of the medium's benefits.

Targeting precision drives ROI

One of CTV's biggest advantages is its targeting capabilities, which have evolved significantly over the past five years.

"We're moving back from inventory being front and center towards targeting," Marchan said. "Because we can get so specific and granular in the way we target audiences from a CTV perspective today, it's exciting."

The targeting options now available to advertisers include first-party CRM data integration, geo-targeting for location-specific campaigns, demographic targeting, and intent-based audiences. This precision ensures that advertising dollars reach specific intended audiences rather than casting a wide net as with traditional linear TV.

"Now we can make sure that every dollar a brand wants to spend goes as far as possible and reaches that specific audience that the brand intends to eventually drive significant ROI for a client," Marchan emphasized.

AI's expanding role in CTV optimization

While AI has been a foundational element of programmatic advertising for years through predictive algorithms that optimize campaign performance, its role is expanding with new applications.

"DSPs like StackAdapt have been using predictive artificial intelligence for years to optimize campaigns to make sure that every impression is going to the consumer that's most likely to convert," Marchan explained.

The innovation now lies in generative and agentic AI applications. For example, Marchan said StackAdapt's Ivy agent allows users to type in prompts like "How is my CTV campaign performing during this time period against this audience?" and receive detailed analysis.

This capability enables advertisers to adjust campaigns mid-flight based on real-time performance data, which is a significant advancement over the "set it and forget it" approach of traditional TV advertising.

Real-time measurement transforms campaigns

Consolidating CTV campaigns into a single programmatic platform provides holistic measurement capabilities that weren't possible with disparate campaign management.

"By consolidating an entire portfolio of CTV campaigns into a single platform like StackAdapt, you're able to actually measure and understand the impact of all of those media providers holistically," Marchan said. "We're tracking more on a user level versus on a publisher level."

This consolidation allows advertisers to optimize for incremental reach rather than repeatedly targeting the same consumers. Real-time brand lift measurement is another innovation that enables advertisers to understand how campaigns impact brand awareness while they're still running.

Most importantly, CTV's ability to target individual users means advertisers can now measure the direct impact of campaigns on purchase decisions through retailer-provided data or CRM system integration.

The future of CTV innovation

Looking ahead, Marchan sees several areas of innovation that will provide competitive edges for advertisers in the CTV space:

• New ad formats, including shoppable and interactive TV units that allow viewers to send ads to their phones
• AI-powered personalization that tailors ad experiences to individual consumers rather than mass audiences
• Cross-device attribution that connects upper-funnel brand awareness on CTV to lower-funnel conversions on other devices

"Being able to tie an experience on a television to an experience on your phone, we can link that view to a conversion on another device," Marchan explained. "For the first time, being able to see that cross-device conversion rate and the path to conversion that is definitely not linear... has been game changing in unlocking different opportunities to build a brand but also to drive sales."

As more households shift away from traditional TV bundles toward streaming services, CTV's role in reaching audiences will only grow in importance, making these innovations critical for advertisers seeking to maximize their media investments.

Watch the full session.

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